A report by published by the Gates Foundation highlights the importance of choosing an affordable path to complete college. Stretch schools are not just schools that are difficult to get into – Stretch schools are also those that may be difficult to afford.
We encourage families to make an informed decision and to not “stretch” beyond your financial comfort. Financial stretch schools are those that your student and family cannot afford.
That does not mean students or their families should not borrow to fund college. There are many practical reasons to borrow for college. Unlike buying a car that depreciates, investing in a college education is something that has prove to appreciate in value. Indeed, higher education may be the best example of when borrowing makes sense.
However – that does not mean all degrees are equal or that guidelines should not be established.
Our measure is simple and easy to apply. No matter what your resources, we recommend that families avoid schools & degree’s require students to borrow more than their expected first year salary post college.