Legere said his daughter felt an expensive school was a given. Instead, he was pushing for her to attend a state school close by, the University of Buffalo, maybe, which cost only $17,000. Though he could afford the higher tuition, he gave her a choice: He’d pay the full cost of a state school, but if she attended the costlier college she’d have to take out loans.
Legere, a businessman, sat his daughter down and ran the numbers. He explained she would need to take out about $30,000 in loans a year. He estimated that paying a total of $120,000 in loans for 10 years at 4 percent interest would cost her $1,200 a month, or the first $9.00 an hour from her salary for 10 years.
“It’s like buying a new car, driving it into a river at the end of the year, and having nothing to show for it,” Legere recalls saying. “I told her it would be fiscally irresponsible of me to let her assume that debt.” The day after that conversation, the young woman texted her mother: Please send a deposit to the University of Buffalo.
Contrast this bit of budgetary wisdom with President Obama’s campaign pledge: “No family should have to set aside a college acceptance letter because they don’t have the money”. President Obama’s campaign peddles the myth that a more expensive education is a better education. His desire doesn’t reduce the cost of college. It just makes other people pay for it, on the theory that you’re entitled to have anything you want.