A Financial Planning Perspective for Michigan Families
I've always had a soft spot for the underdog.
Maybe that's because, in many ways, I've always considered myself one. I've never believed that the name on the door—or the name on the sweatshirt—is what ultimately determines someone's success. I've seen too many people build incredible careers and lives not because they started with the most prestigious opportunity, but because of what they did with the opportunity they were given.
That perspective has shaped the way I think about college planning.
There is tremendous pressure on high school students today surrounding where they go to college. Here in Michigan, the University of Michigan may be the dream. Michigan State may be high on the list. And if those options don't work out—or a student simply wants to go away to school—the search can quickly turn to another recognizable Big Ten university.
Indiana. Wisconsin. Purdue. Penn State. Ohio State.
These are all excellent universities. I'm certainly not suggesting otherwise.
But they can also come with a very different price tag for a Michigan family.
And this is where I think parents and students need to separate some of the emotion surrounding the college decision from the financial reality.
How much does the name on the college sweatshirt really matter—and how much is it worth?
College Decisions Are Financial—and Emotional
This is something I think we sometimes miss when we talk about college planning.
As parents, we want to give our kids every opportunity we possibly can. We want them to dream big. And when your child has worked hard throughout high school, it can be incredibly exciting to see that acceptance letter arrive from a school they've dreamed about attending.
There is an emotional side for the student, too.
Teenagers can attach a lot of meaning to getting into—or not getting into—a particular school. At 17 or 18, it can feel as though the college you attend is going to define the trajectory of your entire life.
It won't.
Not getting into your first-choice school doesn't determine your future. And choosing a more affordable school doesn't mean you're settling.
Sometimes the student who takes the less obvious path—the underdog—ends up creating an extraordinary one.
That's why I think families should give themselves permission to step back from the excitement for a moment and look at the entire picture.
Start With the Real Cost
It's easy to compare tuition. What families really need to compare is the total cost of attendance over four years.
That includes tuition and fees, housing and meals, books and supplies, transportation and travel, personal expenses and potential tuition increases.
Consider Indiana University Bloomington. For 2026–27, IU estimates the total cost of attendance for a nonresident undergraduate at $62,956 for one year. That includes $42,702 in tuition and mandatory fees, $14,398 for housing and food, and estimated costs for books, transportation and personal expenses.[1]
At today's estimated cost, four years would approach $252,000 before future increases or financial aid.
Now compare that with an in-state Michigan option.
Grand Valley State University's estimated 2026–27 cost of attendance for a Michigan resident living on campus is $33,336. That includes estimated tuition and fees of $16,886, housing and food of $12,738, and allowances for books and personal expenses.[2]
That's almost a $30,000 difference in one year.
If those annual estimates simply remained constant for four years, the difference would be approximately $118,000.
Of course, that's not necessarily what either family will actually pay. Scholarships, grants, tuition increases, housing choices and other factors can change the numbers considerably.
Does that automatically make Grand Valley the better choice?
No.
Does it make Indiana the wrong choice?
Absolutely not.
But if we're going to spend an additional $50,000, $100,000 or even more for one option, let's understand what we're getting for that extra money.
That's a very different question from simply asking which school has the better name.
When College Savings Won't Cover the Full Cost
The reality is that many families haven't saved enough to simply write a check for four years of college.
College savings may be one piece of the puzzle, along with current income, scholarships, grants and potentially borrowing.
If that's your situation, your child can still receive an excellent education.
But I think the cost comparison becomes even more important.
There is a big difference between choosing to spend an additional $100,000 that you've already saved and borrowing an additional $100,000 because you haven't.
And borrowing has become an especially important part of the conversation for families entering college now.
Beginning July 1, 2026, new federal Parent PLUS borrowing limits generally cap borrowing at $20,000 per academic year and $65,000 in total per dependent undergraduate student, subject to a limited exception for certain existing borrowers. The fixed interest rate for Parent PLUS loans first disbursed between July 1, 2026 and June 30, 2027 is 9.07%, and federal PLUS loans also carry an origination fee.[3]
That means families shouldn't assume they can simply borrow whatever gap remains between financial aid and the cost of attendance.
If college savings won't cover the cost, ask where the rest of the money is going to come from.
Will it come from current income?
Student loans?
Parent PLUS loans?
Private loans?
Reduced retirement contributions?
Home equity?
Investments that were intended for another financial goal?
This is where parents also need to give themselves permission to say:
"We want to give you a wonderful education, but we also have a budget."
That isn't taking an opportunity away from your child. It's helping them understand one of the first major financial decisions of their adult life.
The goal isn't to find the cheapest college.
It's to find a great education and opportunity that fits your child and that your family can reasonably afford.
Don't Overlook the Schools in Our Own Backyard
Michigan students have a lot of options.
A student who doesn't attend the University of Michigan or Michigan State still has access to strong universities such as Grand Valley State University, Central Michigan University, Western Michigan University, Eastern Michigan University, Oakland University, Wayne State University, Michigan Technological University and the University of Michigan-Dearborn.
We also have private colleges and universities including Hope College, Calvin University, Kalamazoo College, Albion College and others.
And don't automatically dismiss a private college because of the sticker price.
The important number isn't necessarily the published price. It's what your family will actually pay after scholarships and grants.
Sometimes the school that initially looks too expensive turns out to be affordable.
And sometimes the out-of-state public university that appears reasonable becomes very expensive once you add nonresident tuition, housing and travel.
Run the numbers.
You may be surprised by what you find.
Does a More Expensive School Mean a Better Career?
This is probably one of the most important questions.
There certainly are differences in average earnings among graduates of different universities. Some schools—and, more importantly, some individual programs—have exceptional recruiting relationships, internship opportunities and alumni networks.
But the name of the university is only one part of the equation.
The U.S. Department of Education's College Scorecard provides earnings information both at the institution level and by field of study. Importantly, the Department's own technical documentation cautions that variation among programs within the same institution can be greater than the differences in aggregate earnings between institutions.[4]
That's why instead of asking only:
"Which school has the best reputation?"
I'd also ask:
"How do graduates from this particular program do?"
If your child wants to study engineering, look at the engineering program.
If they want to become a nurse, look at nursing outcomes.
If they're interested in accounting, business, education, computer science or another field, investigate that particular program.
Who recruits there?
Where do graduates work?
What internship opportunities are available?
What are the graduation and job-placement rates?
What are graduates earning?
The school's overall reputation may tell you far less than the outcomes of the program your child will actually attend.
What Will Your Child Do With the Opportunity?
The employment market is changing, too.
According to the National Association of Colleges and Employers' Job Outlook 2026 survey, 70% of participating employers reported using skills-based hiring, up from 65% the prior year. NACE also found that employers continue to place significant value on hands-on experience: nearly all respondents considered U.S.-based internships valuable, and more than three-quarters valued co-op experience.[5]
So instead of asking:
"What is the most prestigious school my child can attend?"
Maybe we should also ask:
"Where can my child build the strongest resume over the next four years?"
Imagine a student graduating from a Michigan university with strong grades, two or three meaningful internships, leadership experience, great communication skills, relationships with professors and mentors, relevant professional skills and very little student debt.
Now imagine another student graduating from a more expensive out-of-state university with a similar degree and a similar starting salary—but with substantially more student and parent debt.
Which student is actually in the stronger position?
The answer isn't necessarily the one wearing the more recognizable sweatshirt.
Parents: Don't Sacrifice Your Own Financial Future
This is the part of the college conversation that concerns me most as a financial planner.
Parents naturally want to give their children every opportunity possible.
But we also need to look at what paying for that opportunity does to the parents' financial plan.
Federal Student Aid makes an important distinction that families need to understand: with a Parent PLUS loan, the parent—not the student—is legally responsible for repayment.[6]
Reducing retirement contributions, withdrawing assets intended for retirement or taking on substantial debt to pay for college can have long-term consequences.
I frequently remind families:
There are financing options for college. There aren't financing options for retirement.
That doesn't mean parents shouldn't help their children.
It means we need to understand what the help costs and whether it fits into the family's broader financial life.
Sometimes Paying More Is Absolutely Worth It
I want to be very clear about this.
I am not saying families should always choose the least expensive school.
There are absolutely situations where paying more makes sense.
A university may have an exceptional program in your child's intended field. It may have significantly better recruiting or internship opportunities. Your student may receive a substantial scholarship. There may be a specialized degree or network that is difficult to replicate somewhere else.
Or maybe your child visits the campus and you simply know this is an environment where they're going to thrive.
That's part of the equation, too.
Financial planning isn't always about choosing the least expensive option.
It's about understanding the tradeoffs and making an intentional decision.
Paying more for a meaningful opportunity can be very different from paying more primarily for a name.
Put the Schools Side by Side
Before making the final decision, I encourage families to put the serious contenders on one page.
Compare the four-year net cost, available college savings, projected student and parent debt, strength of the academic program, career outcomes, internship opportunities, graduation rate and—just as importantly—whether this is a place where your child is likely to thrive.
When the financial aid offers arrive, look carefully at what is actually being offered. Federal Student Aid specifically recommends distinguishing grants and scholarships, which generally don't have to be repaid, from loans, which do.[7]
Once you put all of that on the same page, you may look at the decision differently.
So, What Is the Name on the College Sweatshirt Worth?
There is nothing wrong with wanting to attend a Big Ten university.
The traditions, athletics, alumni networks, academic resources and campus experiences can be incredible.
But before deciding that the more recognizable school is automatically the better investment, take some of the emotion out of the decision and run the numbers.
If one university will cost $100,000 more over four years, ask two questions:
What are we receiving for that additional $100,000?
And:
Where is that $100,000 going to come from?
If the money has already been saved and the family can comfortably afford the difference, the decision may look one way.
If it requires significant student loans, parent debt or sacrificing retirement savings, it may look very different.
Maybe it's the underdog in me, but I don't believe the name of the school determines the life that comes afterward.
The student does.
The name on the sweatshirt can matter.
What your child does while wearing it matters a whole lot more.
So look at the program. Look at the opportunities. Look at the cost. Look at the debt.
And, most importantly, look at your child and the environment where they are most likely to thrive.
The goal isn't to find the cheapest college.
And it isn't necessarily to find the most prestigious college.
It's to make a thoughtful choice that fits your child, your family's values and your financial life.
Sources
1. Indiana University Bloomington, Cost of Attendance for Undergraduate Students, 2026–27.
2. Grand Valley State University Office of Financial Aid & Scholarships, Estimated Cost of Attendance, 2026–27.
3. U.S. Department of Education, Federal Student Aid, Direct PLUS Loans for Parents. Parent PLUS limits and interest rates effective for 2026–27.
4. U.S. Department of Education, College Scorecard Technical Documentation. Institution-level and field-of-study earnings data.
5. National Association of Colleges and Employers (NACE), Job Outlook 2026 and Employer Use of Skills-Based Hiring Practices Grows, January 2026.
6. U.S. Department of Education, Federal Student Aid, How to Evaluate Your Aid Offers and Direct PLUS Loans for Parents.
7. U.S. Department of Education, Federal Student Aid, How to Evaluate Your Aid Offers.
College costs, financial aid rules and loan terms are subject to change. Families should confirm current information with each college and Federal Student Aid before making financial decisions.