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I think I should give you direct values, instead of simple speculation. I am masters student in one of the US citizens, and am being funded by my parents saving
by screye 9y ago
I think I should give you direct values, instead of simple speculation. I am masters student in one of the US citizens, and am being funded by my parents savings, so this is all very relevant.
I grew up in an above middle class Indian household with an income of about $10,000 a year. My parents lived very frugally (I lived in possibly the highest Indian COL area) and my parents started saving early. Over about 25 years, my parents have managed to save about $80k, which they are fully using to fund my Masters.
Funding your child's masters is a huge risk to an Indian parent. The deal is that I fund my brother's masters and take care of my parents after their retirement. Should I bail after my Masters, that would leave my whole family in financial ruin. At the same time, the blind trust between family is one thing that I think helps Indians manage debt better than Americans where family members usually manage finances independently. (for better or for worse)
Now most Indians aren't above middle class or frugal/economically aware to start saving at the rate my parents did. Loans at 10-15% interest rate are very common.
If you look at the odds in this sense, it is absolutely vital that an Indian gets a job in the US after graduation. The person might not settle there, but they would usually work there for at least 5 years to pay off their debts or responsibilities. I am fortunate enough to be in a well ranked university with generally decent career prospects at the end of my Masters (sadly no funding). But, if Trump were to change immigration and h1B policies the ones at less prestigious places would possibly have their lives overturned. If such a change does happen, I hope it does not retroactively affect those already in the US and rather is applied to those who will be coming. (so students can avoid US as an expensive destination for higher studies, all together)
- taurath 9y agoIt’s very sad actually that in the US my parents saved absolutely nothing for college because when my one parent that attended did it they could afford it with a summer job.
- zxcmx 9y agoYeah except for the tons of people who help out their parents on minimum wage jobs because family is family. And those parents "contributed nothing" (except for you know, labour and care and such). It's nice when people have it together but you'll go crazy if you try to "add it up". I hope I'm lucky and consistently organised enough that my children feel entitled to believe that their success was planned for them. Working on it. They'll probably hate me for it and have some point of view where it is "stifling". Still cool, get it.
- taurath 9y agoTo be clear, I'm not knocking my parents here, more pointing out how much the culture has changed
- zxcmx 9y agoYeah you never win or pay off "ancestor debt", and you'll never be free of the debts you owe your children. At the end of it, being an adult looks a lot like working for everyone else all of the time and it sucks. It is what is is though and it's worse to be useless. At least that's how I get through the week.
- DamonHD 9y agoMy parents (when in Canada) saved hard for a scheme that would pay for university for me. In the end the fund performed so badly compared to its promise that it just about bought me some nice textbooks 30 years ago in the UK. (I came across some of the paperwork when 'archiving' the other day.) Equally, I punt money into my kids' pensions, but at that distance it is a huge punt economically! I mean, some politician somewhere could do something stupid and destroy their value before my kids get to cash in in 50 years' time, just imagine! B^> Since governments spend in the now, maybe it's rational for parents to also.
- RA_Fisher 9y agoI think my parents ended up being really surprised that college couldn't be paid for with a summer job. I don't think Boomers realize the price increases we've seen in college tuition prices.