Anyone that's recently paid tuition know if the fixed rate or variable is better? Daughter is working on her application and we're not sure about that one as it wasn't an option forever ago when I was there.

Sort of like asking if you want a 48-month electric plan or a 12-month electric plan you renew every year for 4 years.

Do you want a locked in rate for 4 years and no price changes or do you want a lower initial rate with some risk of more expensive tuition in future years

If you want one less thing to keep you awake at night, pick the fixed.

How old is everyone here that your daughter is applying for college?

maroon barchetta said:

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How old is everyone here that your daughter is applying for college?

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I have one that graduated from college in May another that is a sophomore in college and my son just started his senior year in HS. I may be old but I am still in my 40s.

Thanks! I was thinking fixed too but online they said the last few years variable had been cheaper.

And I'm 47. My daughter just applied early August for the Spring, so hoping to hear back soon.

No. You're 30. We are all 30.

OP is a blast from the past…….

It looks like the locked rate is 8% higher than the variable rate.
https://tuition.tamu.edu/undergraduate

Locked rate cost for 4 years would be 4 * 1.08 * V = 4.32V

For simplification, assume that V increases by a addition of N each year, so
1st year = V
2nd year = V + N
3rd year = V + 2N
4th year = V + 3N
Total = 4V + 6N

For the break even point:
4V + 6N = 4.32V
6N = .32V
N/V = .053333 or 5.333%

For a compounding rate, assume that V increases by a multiplier of X each year, so
1st year = V
2nd year = Vx
3rd year = Vx^2
4th year = Vx^3
Total = Vx^3 + Vx^2 + Vx + V

Solving for the break even point
Vx^3 + Vx^2 + Vx + V = 4.32V
x^3 + x^2 + x + 1 = 4.32
x^3 + x^2 + x - 3.32 = 0

Using a cubic solver such as:
https://www.calculatorsoup.com/calculators/algebra/cubicequation.php
The Real root for x = 1.05154

So, if you think tuition will increase more than 5.154% each year, then go with the locked rate.

Other factors that could affect this could be legislative action that could freeze tuition or cap increases.

It was my understanding there would be no math.

MonkeyKnifeFighter said:

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maroon barchetta said:

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How old is everyone here that your daughter is applying for college?

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The "your mom!" board has overwhelmingly become the "you're Mom" board.

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Variable has been cheaper because the state made them keep rates the same for 2 years. I would not be surprised to see a larger bump than usual in 2025 for catch-up.

Right? I'm not sure where the last 20+ years went.

first I was like

DD88 said:

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For simplification

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and then I was like

Quote:

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assume that V increases by a addition of N each year, so
1st year = V
2nd year = V + N
3rd year = V + 2N
4th year = V + 3N
Total = 4V + 6N

For the break even point:
4V + 6N = 4.32V
6N = .32V
N/V = .053333 or 5.333%

For a compounding rate, assume that V increases by a multiplier of X each year, so
1st year = V
2nd year = Vx
3rd year = Vx^2
4th year = Vx^3
Total = Vx^3 + Vx^2 + Vx + V

Solving for the break even point
Vx^3 + Vx^2 + Vx + V = 4.32V
x^3 + x^2 + x + 1 = 4.32
x^3 + x^2 + x - 3.32 = 0

Using a cubic solver such as:
https://www.calculatorsoup.com/calculators/algebra/cubicequation.php
The Real root for x = 1.05154

So, if you think tuition will increase more than 5.154% each year, then go with the locked rate.

Other factors that could affect this could be legislative action that could freeze tuition or cap increases.

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Fixed.