John had a stern, almost angry look on his face when he put up his hand.
The Stanford bound high school senior is a student in my Personal Finance class. He had just finished a series of calculations determining whether college graduates are better financially served earning a Bachelor’s degree at a state college versus an Ivy League institution. I posed the question as a lesson on “opportunity cost” and to be honest, I didn’t know the answer. I just wanted the kids to understand the “time value of money.”
For example, if one student spends $220,000 on a Stanford degree and a second spends $86,980 for four years at Texas A&M University, what is the true cost of going to Stanford after loan interest payments?