Should I take out loans to go to the best college or go to a cheaper school with no loans?

We’re gathering your questions about all things money and finances. Then, we get your questions answered by the people who know best.
Students are back in the classroom, but for some high schoolers, a big decision is looming.
Calvin Buss from Godfrey in Madison County asked:
College can open doors
Shari Greco Reiches, regional director at EP Wealth Advisors’ Skokie office, said choosing which college to attend depends on what’s right for you and your family.
Reiches said she was one of seven children. When she was ready to go to college, her father said he would pay for a state school, but if she wanted to attend a private college she would have to finance it herself. She chose to attend the University of Illinois, majoring in accounting.
“I met some of my best friends there,” she said. “I actually met so many people that later on in my career [they helped] me find jobs, became my clients. So for me, going to the University of Illinois was a great decision because I left there without any loans.”
There are also benefits with attending a private college or top university such as an Ivy League. Reiches said she often had large classes with a teacher’s assistant, but at some pricier schools, the class sizes can be much smaller. Students may often have a chance to connect directly with professors, and the networking opportunity can be beneficial, giving you a higher chance of meeting “people from all over the country, if not the world.”
“And having that prestigious degree will open doors, especially with your first job,” she said.
Make it a family decision
Parents should be clear with their child about what they’re willing to pay toward college tuition and other costs, according to Reiches.
“Parents, don’t put your retirement at risk to pay for college because you can’t get loans when you’re in retirement,” she said. “Make sure that you have a financial plan and that you understand how much you’re willing to pay and making sure that you still have the resources for your retirement.”
She also said students should apply to a range of colleges and see what type of financial aid, grants or merits they may receive. Based on the estimated costs and the financial aid package, a student should then pick the school that would be the best fit.
“Prestige should not be the one priority,” she said.
Managing student loans
Some college graduates with pricey loans are having to spend 10 to 20 years paying off the balance. Reiches said before taking out a loan, estimate what your salary might be in your chosen career to see if you can manage a high monthly loan payment.
The Occupation Outlook Handbook from the U.S. Department of Labor is one resource that offers estimated job salaries, she said. Another resource is a net price calculator that each school has on its website. Reiches said the tool can predict what a student’s financial aid will be based on factors like credentials, net worth and money saved for college.
“But remember the job market could be unpredictable, and finding a job in the field of your choice may be difficult. You may not like that job of being an engineer so take a lot of care once you know what your loan amount will be,” she said.
Also, if you have plans to attend graduate school, that can add costs. But Reiches said students are able to negotiate their financial aid package to reduce a loan’s amount.
“There is a lot of cons with taking student loans,” she said. “It can add stress. … These loan payments affect your credit rating so it may delay buying your first home, maybe buying a vehicle and there may be other life choices, where if you’re strapped with these loans you may not be able to switch jobs … take big vacations. I’ve often seen it sometimes delays marriages … so really go in with your eyes wide open if you’re going to get these loans.”
Benefits of networking
Whether you choose a state school or an Ivy League, Reiches said it’s what you make of the college experience that can help you land your first job.
“I have found that if you are a smart motivated student, you’re going to shine and get similar benefits — whether you go to your state school or you go to a prestigious school,” she said. “It’s how you get involved. It’s your studies. It’s your relationship with professors.”
She said if you’re good at making connections, “you’re going to make connections in the business world, regardless of what school you went to.”