Erin Lowry: I turned down my dream college. More kids should do the same

Erin Lowry, Bloomberg Opinion on

Published in Lifestyles

Bloomberg News reported that Stanford University was one of a number of schools with large enough endowments to make offers based solely on school funds, with the understanding that these scholarships ultimately would be swapped out for financial aid.

It’s fortunate that those universities found a workaround, but it doesn’t solve the problem that they are insisting students decide in a vacuum. Pressing students to commit by May 1 when other schools have yet to send their financial aid offers could mean accepting an elite university’s offer, but then being on the hook for financing tens of thousands of dollars in education costs. Another college, even one of less prestige, might eventually come through with a more substantial financial aid package that would have allowed a student to graduate debt-free, or closer to it.

Part of this path also might require both parents and students to separate their desire to be associated with a top-ranked institution from the actual value the experience provides. Parents sometimes center themselves in the narrative of their children’s accomplishments — so their offspring’s acceptance at an elite university reflects highly on their parenting and on their self-image. Having a top university splashed across your chest or embroidered on your ball cap may provide an ego boost, but the name alone won’t guarantee a lucrative or fulfilling career.

Students do have another option to cope with this year’s financial aid morass. Most colleges require new students to pay a nonrefundable enrollment deposit to secure their spot for the coming academic year. Students (or parents) with the financial means to forfeit several hundred dollars could simply pay the deposit at a school that is sticking to the May 1 decision deadline.

Then, should a better financial deal arise at an equally desirable college, the student can withdraw their commitment to the first school and switch to the institution that offered a better financial deal.

To be clear, students should never put down seat deposits at multiple schools. Rather, if they receive a better financial aid offer, they should call the admissions department to explain their situation and ensure paperwork is properly initiated. This option does not apply to the early decision acceptance, which is binding.


Losing a few hundred or even a thousand bucks in an enrollment deposit makes sense if the trade-off is saving thousands or potentially tens of thousands of dollars by attending a school that offers a superior aid package.

Thanks to the financial aid I received, I was able to move to New York City upon graduation, work for a late-night talk show (earning a meager salary) and, years later, leave a comfortable job that paid well to try my hand at self-employment. These risks, and the life I lead today, would have been unfathomable if I were facing the mountain of debt that burdens so many college grads today.


This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

Erin Lowry is a Bloomberg Opinion columnist covering personal finance. She is the author of the three-part “Broke Millennial” series.

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