Start saving for college NOW

[choirfarm]

I just wanted to talk to all of you on this board after reading all of the discussions on the high school board about people being shocked when they fill out financial aid forms about what they should be able to contribute. They expect you to have been saving all along for college, not to start saving when they get to high school!!!!

 

When every child has been born, we have had a small amount automatically deducted to go for college first in just a regular account, now in a 529. It is AMAZING how much it adds up now that my oldest is 15. So those of you with children in K or 1st...younger or older. START NOW if you think your children want to go to college. Just get it automatically deducted so you won't notice it. I mean let us say your child is 1 and you put 25 bucks away a month. That would be 300 bucks a year times 17 years . That would be 5,100 dollars and that doesn't take into account the compounding. (Maybe math majors could help me out!) Plus, once you start, when hubby gets a raise, then up the amount. Start with SOMETHING.. JUST DO IT!!!! It will be here before you know it. I realize that college isn't for everyone, but if you think it might be, start now.

 

Christine

[Mom0012]

Yes, those posts on the HS board really opened my eyes! I made some adjustments to what we've been doing and realized we're going to have to be a lot more aggressive with our plan if we want to avoid tons of loans.

 

Lisa

[Annabel Lee]

What do you suggest for people not in a position to take any financial risks? I.e., nothing tied to the stock market or that can lose value. Would a "529" be good for this?

 

ETA: I've always taken my parents' approach, which is "If you want to go to college you'll have to work & pay for it yourself". Is this realistic w/ today's tuition costs?

[Jane in NC]

There are many savings calculators on the Internet. I used one to run some numbers.

 

Suppose you save $25 a month from birth to age 18 for your dear one. At today's stinking interest rate of (maybe) 2%, dear child's nest egg is worth $6,529.32. If the interest rate were to go up to 4%, the nest egg is $7,941.11.

 

Now of course there are ways to add to that $25 a month deposit. When my son was in preschool, he would receive holiday cards with $1 or $5 from kind relatives. Did he need the money? No--it went into the bank as did larger gifts. Let the magic of compound interest do its work to make these small sums grow!

 

So suppose that you deposit $50 when your child is born and then add $50 through automatic deduction. Most likely that $15,882.22 is under the amount that colleges have expected you, as parents, to have saved, but it is $15K less that you or your child will have to borrow to fund college.

 

Many people assume that financial aid will pay for most or all of college. For some this is true. For most "middle class" people it is not.

 

Jane

 

P.S. Many also assume that Brilliant Child will get boatloads of merit aid. Many merit aid scholarships cover $10-$20K annually at private colleges. Sounds good, but the total bill runs $40-$50K annually. The top schools no longer provide merit aid. They know all of their students are bright but promise to meet financial need. That "financial need" amount assumes that parents saved for college even if your savings account balance does not indicate the presence of those assumed dollars!

[choirfarm]

nt

Edited February 20, 2010 by choirfarm

[Renee in NC]

Or find an employer that pays for college.

 

My oldest will go to college (up to $30K per year) at the expense of Duke University (and he can go to any school, not just Duke.) They don't offer this to new employees anymore, but it is worth looking into to see if other employers do.

 

As far as working through college, some will have to. Look at all options - ROTC, AmeriCorps, scholarships in exchange for service in underserved areas, etc.

[NoPlaceLikeHome]

All 529 plans are different. We have some in accounts that start aggressive 80 stocks and 20 bonds and changes as they get older to be more conservative so that it is in a guaranteed on by the time they graduate. We have another one that is a guaranteed one..it earns a set percent and won't lose value.

 

As far as working, I don't know. My parents always told me that school was my job. That I had my whole life to work. I was only allowed to work in the summer. I was supposed to study and get as much out of college as possible. I also figured that my studying paid off as it allowed me to pay for over half my expenses with scholarships for the first

That was ok 10 or 20 years ago when college costs were reasonable. However, today, kids who put themselves through school with loans are ending up owing astronomical amounts of money:( I guess that means they will owe money for just about their whole lives and never be able to own a house:001_huh:

 

I believe something has to be done about run-away college costs.

Edited February 20, 2010 by priscilla
spelling

[Mom0012]

What do you suggest for people not in a position to take any financial risks? I.e., nothing tied to the stock market or that can lose value. Would a "529" be good for this?

 

ETA: I've always taken my parents' approach, which is "If you want to go to college you'll have to work & pay for it yourself". Is this realistic w/ today's tuition costs?

 

I'm in Virginia and they have a 529 program called the Virginia Prepaid Education Program. Basically, by participating in this, you are locking in today's tuition rates. The only risk would be if the tuition rates all dropped significantly between now and when your child goes to college (which seems very unlikely). Otherwise, you are guaranteed that your tuition will be covered at a state university or community college. Prior to that, we had been using a different 529 plan - the VEST, which was more like a savings plan and was affected by what our investments did.

 

I wish I had switched to the VPEP when my kids were little. We would have probably paid about half of what we will now. My stepdaughter had funds put in the VPEP about 10 years ago and the full cost to cover tuition at a 4-year university was $18,000. Now it is over $40,000 for the same thing. We can't afford the $40,000, but you can buy one year at a time, so we took the VEST funds and bought 1 year at a state university for each child. We will buy another year for my oldest child (has to be done before March of this year) and then make payments on it. Hopefully, at some point, we will be able to add in another year for my daughter and then my kids will probably have to go to community college for 2 years unless they are able to get some sort of scholarship.

 

Lisa

Edited February 18, 2010 by LisaTheresa

[Leanna Tomlinson]

 

ETA: I've always taken my parents' approach, which is "If you want to go to college you'll have to work & pay for it yourself". Is this realistic w/ today's tuition costs?

 

This is NOT realistic with today's costs.

 

In the 1980's I made $5.00/hr (which was above minimum wage). In a 12 week summer I could make $2400 (without taxes being taken out). My tuition at a state school started at $2100/year in 1984 and ended at $2400/year four years later. I paid for my tuition. Working weekends through the school year paid for my gas, books, and eating expenses.

 

2010...tuition at the same school is $10,000/year. If my dc had a job making $8/hr (which is over minimum wage). They could make $3840 in a 12 week summer. That is LESS THAN HALF of tuition for one year!

 

My kids earning power is only 38% of tuition in this example. My earning power in 1984 was 100% of tuition.

 

My dh and I were always of the mind that we put ourselves through college and our kids could do the same. That may work at a community college, but most kids don't have the earning potential that we had 20 years ago.

 

HTH,

Leanna

Edited February 18, 2010 by Leanna
clarity

[calandalsmom]

sorry. no can do. still paying off dh's PhD.

[Chris in VA]

Just wanted to let folks know some things we found out--

 

First, Community College is a real bargain. I strongly advise homeschoolers who want to tackle high school to allow their child to take a few CC classes. You have to be careful not to take too many--some colleges want scholarships to go to freshman and consider those with CC credits beyond a certain pt to not be freshman. Sometimes, tho, the cost savings balance the loss in scholarship $.

 

Second, get ready to be told you can afford far more than you think--FAFSA doesn't take into account debt, so if you are paying medical bills (like we are), or have big credit card debt, or whatever, you still are expected to cough up a lot of $.

 

Tuition is expensive, even for state schools. Ds is at VCU, a great school, a state school--he's instate--we pay about $8K a year in tuition, but it's another 8 for the dorm. Still, not too bad. However, we get NO help, and we had no savings b/c of other expenses (see above). Costs can come down some in an apt and if you can CLEP, AP or CC classes. It's still a lot, tho, and we will soon have two in college.

 

Anyway, save, save, save!

[crl]

As far as working through college, some will have to. Look at all options - ROTC, AmeriCorps, scholarships in exchange for service in underserved areas, etc.

 

My brother went through the Army ROTC program and had 100% of his schooling paid for. I know not all will get that kind of a deal. I personally went to the community college starting with classes at age 15. So my parents were able to pay cash for at least part of my schooling. Then their savings went to pay off the main university I graduated from.

[2squared]

That was ok 10 or 20 years ago when college costs were reasonable. However, today, kids who put themselves through school with loans are ending up owing astronomical amounts of money:( I guess that means they will owe money for just about their whole lives and never be able to won a house:001_huh:

 

I believe something has to be done about run-away college costs.

 

Seems like if college costs continue to escalate, it isn't going to make sense to go to college anymore. If my kids can't pay for their education in their lifetime, what makes me think it is a wise investment for me? There are a lot of jobs that don't require college and still pay well. There are a lot of ways to get an education, too.

 

My dh is a lawyer, so I am not anti-college. I'm just anti-bad choices. I will sit down with all my kids to analyze their career choices, earning power, and investment (schooling) needed.

[Jenny in GA]

Even though we are fortunate enough to be saving for our kids' college, this thread surprised me.

 

We live in GA, which has a HOPE scholarship program. I think the requirement is to have and keep a B average (which hardly seems unreasonable), and your tuition at a state college is completely paid.

 

I just assumed my kids would get that (or something like it), and work some to help pay for room and board expenses.

 

My parents didn't save anything for us for college (until we were in high school) and didn't receive any financial aid. My brother and I both went to private schools, worked some, I got a couple scholarships, and there was never any talk of loans or debt.

 

I guess things have changed a lot?? What am I missing? Does college HAVE to cost a fortune?

[vickiMD]

I am not sure about the details but aren't AP classes an inexpensive way to get college credits? I think that you just have to pay a small class fee and pass the test. There was an article in the local paper that a high school senior took enough AP classes to get credit for 1.5 years of college. Again....I am not sure about how it works but I will definately be looking into it more.

[LoveBaby]

My future sister-in-law is getting ready to graduate in May with no expenses. She's had a few scholarships, but has mostly worked 2 jobs to put herself through school. She's worked hard and done very well, so I think it is very possible to put oneself through school. She did graduate from a community college with an associates degree that was fully transferable to her 4yr. college. The community college was a *huge* savings in tuition and quite frankly, with smaller class sizes and more 1 on 1 instruction a better educational choice.

 

In today's economic climate we will sit down with our children and really discuss the advantages/disadvantages to a college degree and plan accordingly. My husband doesn't have a degree, but is doing very well for himself at a small business. He's taught himself internet/computer skills, is a hard worker that's willing to get his hands dirty and he shows up every day. His employers appreciate his can-do and willing to work attitude and pay him accordingly. Until the building industry tanked last summer, he was making more than several of my good friends with bachelors degrees, by far. And we didn't have to worry about student loans during the pay-cut like they were, if they still had a job.

 

I'm not saying we shouldn't save for the future for our children, but I don't think a bachelor's degree holds the same "golden ticket, good job, good pay" that it did even 15 years or so ago.

[Jane in NC]

I thought that I would address a couple of points raised in this thread.

 

Even though we are fortunate enough to be saving for our kids' college, this thread surprised me.

 

We live in GA, which has a HOPE scholarship program. I think the requirement is to have and keep a B average (which hardly seems unreasonable), and your tuition at a state college is completely paid.

 

I just assumed my kids would get that (or something like it), and work some to help pay for room and board expenses.

 

My parents didn't save anything for us for college (until we were in high school) and didn't receive any financial aid. My brother and I both went to private schools, worked some, I got a couple scholarships, and there was never any talk of loans or debt.

 

I guess things have changed a lot?? What am I missing? Does college HAVE to cost a fortune?

 

Not everyone lives in a state with guaranteed tuition programs. Further, with all of the state budget cuts, will they be guaranteed in ten years? Secondly, I checked 08/09 figures on IPEDS, the federal statistics site. While the cost of attending Georgia Tech that year was $16K in state, only $6K was tuition. Does your Hope Scholarship cover room, board, books and fees?

 

Yes, things have changed. Many private colleges run about $40K a year and provide merit aid of perhaps $15-$20. It is hard to make up the difference in the summer months or by working a part time job.

 

No, college does not have to cost a fortune, but it can. The OP is wise raise a cautionary flag.

 

I am not sure about the details but aren't AP classes an inexpensive way to get college credits? I think that you just have to pay a small class fee and pass the test. There was an article in the local paper that a high school senior took enough AP classes to get credit for 1.5 years of college. Again....I am not sure about how it works but I will definately be looking into it more.

 

Community college may work for some but not for all. My son has earned 26 hours of credit at the CC while in high school. Earning an associate's degree would not do him much good for his intended major since a number of the courses he needs are not offered at our CC.

 

Further, not all colleges are as liberal with AP or CLEP credits as they were formerly. Some schools only give AP credit when students earn a 5 on the exam, maybe a 4. Some schools will not give credit for more than three AP classes. It all depends on the college. What those of us who hang out at the high school and college boards know is that what is true for one school is not necessarily true at another. Further, colleges change their policies--what was true for big brother is not always the case for little sis when she attends the same school five or ten years later.

 

Also bear in mind that colleges endowments are not as robust as they were a few years ago. At least one of the colleges (Williams) that promised a debt free education to students with families with incomes below a certain level has rescinded the policy.

 

Parents really do need to keep their heads up--and start saving.

 

Jane

[Renee in NC]

Even though we are fortunate enough to be saving for our kids' college, this thread surprised me.

 

We live in GA, which has a HOPE scholarship program. I think the requirement is to have and keep a B average (which hardly seems unreasonable), and your tuition at a state college is completely paid.

 

I just assumed my kids would get that (or something like it), and work some to help pay for room and board expenses.

 

My parents didn't save anything for us for college (until we were in high school) and didn't receive any financial aid. My brother and I both went to private schools, worked some, I got a couple scholarships, and there was never any talk of loans or debt.

 

I guess things have changed a lot?? What am I missing? Does college HAVE to cost a fortune?

 

I think the impetus for the thread is a subset of people who were surprised by the EFC assigned to them by the FAFSA. The FAFSA takes into account the assets and income of the student and the assets and income of the parents (only when the income is over $50,000.)

 

I think the problem is that the definition of "middle class" is not easily definable. It seems that everyone thinks they are "middle class."

 

I am going to link to a detailed calculator (that will show exactly how it was calculated - plug in your numbers and see if it clarifies your EFC better.)

 

I did what *I* considered a normal, middle class family - $65000 a year, 4 members (1 in college), $25000 in an emergency fund, another $25,000 in liquid assets, and $100,000 in home equity. This gave me an EFC of roughly $9500 - not an undoable number!

 

I played around with it a little to come up with the numbers being reported and, well, I keep getting back to that "what is middle class?"

 

http://www.finaid.org/calculators/finaidestimate.phtml

 

Of course, I am coming at this as someone whose EFC is 0, but I'd take the EFC of $9500 if it meant that I had $50K in the bank and $65K per year income. Heck, I'd take just the income! At $100K with no assets, the EFC is $15K (roughly.) I'd take that too!;)

[happygrrl]

Thank you so much for this thread!

 

Increasing our saving will officially move from the "things I need to think about" list to the "things to do today list".

[Mosaicmind]

For some of us saving any at all is not feasible. We have seven kids, have been married 21yrs, and my dh has been laid off from 4 jobs in our marriage. He just got a job in July after being laid off for almost 8mo. We have had astronomical medical bills that we have not been able to pay on.

 

I have been getting my degree the past 4yrs and have had to take student loans, there was no way out of it. But, I knew when we have only a couple of kids at home we won't get the grants that we get now. Our oldest is going to start college this fall after being out of highschool for 2yrs. She has applied and gotten accepted to Purdue, which estimates her cost will be $22,000. That figure takes into account she will stay in the dorms, which she won't so take off $8300. My efc on my FAFSA is 0 for next year, I will be doing my master's. Her efc is $2300.

 

There are lots of other ways to get your kids through school without saving all their lives. My dh's parents didn't and neither did mine. He came out of school with minimal school debt. This time around I will have considerable student loans, but unless I take 10yrs to complete my degrees there is no way around it in this economy and with school costs.

 

Also, I might add that the last job my dh had did not require but a highschool diploma and he made more than he did at any of his other jobs as a chemist, using his degree. It wasn't until getting this last job in July that he is actually being paid what he is worth. So, a degree doesn't guarantee anything in today's world.

[Renee in NC]

I thought that I would address a couple of points raised in this thread.

 

 

 

Not everyone lives in a state with guaranteed tuition programs. Further, with all of the state budget cuts, will they be guaranteed in ten years? Secondly, I checked 08/09 figures on IPEDS, the federal statistics site. While the cost of attending Georgia Tech that year was $16K in state, only $6K was tuition. Does your Hope Scholarship cover room, board, books and fees?

 

Yes, things have changed. Many private colleges run about $40K a year and provide merit aid of perhaps $15-$20. It is hard to make up the difference in the summer months or by working a part time job.

 

No, college does not have to cost a fortune, but it can. The OP is wise raise a cautionary flag.

 

 

 

Community college may work for some but not for all. My son has earned 26 hours of credit at the CC while in high school. Earning an associate's degree would not do him much good for his intended major since a number of the courses he needs are not offered at our CC.

 

Further, not all colleges are as liberal with AP or CLEP credits as they were formerly. Some schools only give AP credit when students earn a 5 on the exam, maybe a 4. Some schools will not give credit for more than three AP classes. It all depends on the college. What those of us who hang out at the high school and college boards know is that what is true for one school is not necessarily true at another. Further, colleges change their policies--what was true for big brother is not always the case for little sis when she attends the same school five or ten years later.

 

Also bear in mind that colleges endowments are not as robust as they were a few years ago. At least one of the colleges (Williams) that promised a debt free education to students with families with incomes below a certain level has rescinded the policy.

 

Parents really do need to keep their heads up--and start saving.

 

Jane

 

All of this is true. Everyone has to make choices about what they want and how they are going to pay for it. Even though our EFC is 0, that $40K school would still be out of reach without massive loans (federal and state aid won't come near that.) Some families have mom get a job to help cash flow. Others plan to spend their liquid assets to pay for it. Still others choose a different route.

 

I am not saying that people should not save for college, but rather that there *are* options out there for those who can't (or don't prioritize it.)

[MeaganS]

Sorry to disagree with the general consensus, but it is completely doable to pay for yourself through college. Both my husband and I just did it (graduated in December). Also all 4 of my husband's siblings and the 2 of my siblings who are going to college are doing it right now. Just don't go to one of the $40,000/year schools. If you go to a state school or an inexpensive private school, you'll be fine. I saved up enough in high school and while working in school and in the summers to pay for everything. So did my dh. And if you get a merit or need-based scholarship, it's even more easy. You just have to be smart and look at all your options. For example, merit-based scholarships at our school were much easier to get in the Summer semester, so we deliberately went to school then because it was free. Now, if you are wanting to go to Harvard or something, that may be more tricky, but frankly, going to an ivy-league school for undergraduate doesn't make sense to me anyways, but that's another post all together.

[MomtoCandJ]

ok need to pick someone's brain.... My dd is 15 months old and we would like to open a 529 for her, but we currently live in Georgia and plan on moving either back to Michigan or at least closer to Michigan sometime in the future. Should I open the Georgia 529 plan because that is where we are right now or should I open something different since we plan on moving sometime in future?

[HappyGrace]

Thank you-I was in a panic enough thinking about homeschooling high school, now THIS? Wow-it is all so complicated. I will have to start considering options from now!

[choirfarm]

nt

Edited February 20, 2010 by choirfarm

[elegantlion]

Thank you for bringing this topic to the K-8 board. I've ventured through some of the cost of college threads recently and after the shock wore off told dh we weren't doing enough.

 

Another option for helping fund a 529 account is http://www.upromise.com/welcome. I signed up a few years ago and haven't looked recently to see what sources we could be utilizing. Thanks for the reminder.

[Daisy]

While we won't be paying for all of our children's higher education, I do agree that saving money for later expenses (whether braces, helping with college, weddings, etc.) is always a wise idea.

[NicksMama-Zack's Mama Too]

Thank you-I was in a panic enough thinking about homeschooling high school, now THIS? Wow-it is all so complicated. I will have to start considering options from now!

 

 

Must

 

Find

 

Chocolate....!

 

 

K

(clearly living in denial)

[i.love.lucy]

This thread is freaking me out! (but a good reminder to get started!)

 

I found this article that might be a good starting point for some of us who want more info on 529 plans. It's a couple of years old but goes state by state and might lead to more findings.

[FairProspects]

I wish I could, but it will be at least 6 years before we get Hubby's and my own student loans paid off :tongue_smilie: (and that is if we are doing awesome on our debt snowball).

[HappyGrace]

I hear you on the retirement-dh is 51 yrs old and we have less than $40K in the 401k. I didn't even work enough quarters to qualify for Social Security :( and have been a homemaker for over 10 yrs, with no income source I could do other than minimum wage type jobs.

 

I always assumed they would do financial aid, scholarships, and/or loans for college. Now this thread has me worried!

[NicksMama-Zack's Mama Too]

Sadly, I'm more concerned about funding our retirement than paying for my kids' education. Of course, I'd love to do both, but for the foreseeable future, I just don't see it happening.

 

Ultimately, the kids will have options (community college, paying their own way, loans, apprenticeship programs in lieu of college, etc.).

 

There aren't many options for retirement other than saving now.

 

Time to break out the Dave Ramsey CDs again and get gazelle like . . .

 

 

 

True here as well.

 

I recently heard the quote "You cannot fund retirement in retirement."

[Guest]

We have been losing ground steadily for the past ten years due to inflation, high cost of living in Southern California, and treatments for my daughter's Asperger's Syndrome which the insurance company will not cover. Then last year my husband, who works for the University of California, took a 10% pay cut. There is no way on earth we could even put $5 aside each month; we're now accumulating debt at an alarming rate as we try to figure out how I can earn money while working with my daughter at home. I tried putting her in school last fall (at her own request) and was hoping against hope to find some part-time work in this economic climate, but she fell apart and was home again by December. So we will approach college empty-handed. We can only see what happens. There isn't any other alternative.

[Haiku]

I

http://www.finaid.org/calculators/finaidestimate.phtml

 

Well, I just discovered that my 15 year old will be going to community college! (Ok, I already knew that she would, but according to this calculator, after our contribution [which is more reasonable than I thought it would be] and a Pell Grant, we only need to come up with an addition $469 for community college, versus an additional $15715 for the state school I attended.)

 

Tara

[shinyhappypeople]

We're lucky to live in an area with a very good community college and excellent state schools. Our *hope* is to present our children with enough money to attend community college for 2 years (live at home) and 2 years at a good state school (living on their own). If they choose a private college or want something different, they'll need to make up the difference with p/t jobs, scholarships, etc.

 

Does anyone know how to figure out how much we'd need to save for this to happen?

[Hockey Mom]

My children have been told from the beginning that they will be responsible for their college costs.

 

My DD is graduating first in her class this year. She has received over $20k in scholarship offers from several different schools. In addition to that, she qualifies for Florida's Bright Futures scholarships. In addition to THAT, if she maintains her class ranking (#1) she automatically will be offered a full-ride, 4-year scholarship to the local University (not community college).

 

I truly believe that if my DD had been depending on ME to pay her way through college, she may not have taken her classes so seriously. That's not to say she's lazy, but rather, she's been very motivated.

 

We will not be saving or paying for our boys' college either.

[HRAAB]

I have two in college (well, one is taking this year off), and they are doing it with no loans. They are attending the local state university and are able to pay as they go. They both started with approximately $2,500. and the rest they will have to pay. We now have a new community college which we be looking at closely. Even as tuition increases, I expect our state university will still be relatively affordable. I have two nieces and a nephew who graduated in the last couple years completely debt free.

 

We do have assets. That is for our retirement. We are not willing to fund college out of our retirement savings; we strongly feel that would not be prudent. We would love to help our children more, but there are financial limits. We have a local community college and state university that are affordable, they can live at home. With my dh being laid off three times in the last five years, that's the best we can do.

[Mom0012]

We're lucky to live in an area with a very good community college and excellent state schools. Our *hope* is to present our children with enough money to attend community college for 2 years (live at home) and 2 years at a good state school (living on their own). If they choose a private college or want something different, they'll need to make up the difference with p/t jobs, scholarships, etc.

 

Does anyone know how to figure out how much we'd need to save for this to happen?

 

This is my goal as well. Here's a link to the costs for the VA 529 prepaid tuition programs. It will give you an idea of the cost.http://www.virginia529.com/Documents/Program_Guide_Pricing.pdf.

 

Lisa

[Leanna Tomlinson]

The kids that are in a tough position are those whose parents make too much money to get any aid, aren't saving, and still think their kids can work enough hours to pay for the typical college. The only college my kids could work and pay for is a community college. Community college is fine and many times a good bargain, but it's not always a fit for a child's major.

 

I'm glad this thread was opened. I talk to people all the time who haven't really analyzed how the costs have changed over the last 15-20 years. Many people I know aren't saving, make too much for needs-based scholarships, and still think their kids are going to go away to the college of their choice.

 

After paying about 90% of college tuition for my eldest, I am definitely changing some things so we can bring ACT/SAT scores up for the younger ones. (Thankfully dd #2 earned much more merit $) I used to think I didn't need to push my kids in math if they weren't showing an interest in that direction. However, just 50 more points on the SAT would have earned my dd#1 $8000 more per year at her current college. Pushing a non-mathy kid to do extra math in the summer is a small price to pay for $32,000 of scholarship money in the future. I wish I had known 10 years ago that it would matter.

 

Leanna

[chaik76]

That was ok 10 or 20 years ago when college costs were reasonable. However, today, kids who put themselves through school with loans are ending up owing astronomical amounts of money:( I guess that means they will owe money for just about their whole lives and never be able to won a house:001_huh:

 

I believe something has to be done about run-away college costs.

Even with large student loans you can still own a house...we still have about $100,000 to pay off in student loans, and we own a house.

 

On the other hand, having $7000 or $10000 dollars in savings isn't always helpful because it is added to the amount you can pay...some families end up paying more because of having that much in savings.

 

And some of us don't have $25/mo to put towards college savings anyway. Yes, I would love to pay for my kids college education. But in all honesty...it's not going to happen. They'll have to take out loans, or get scholarships, or work their way through school. It's just the way it is.

[Haiku]

But in all honesty...it's not going to happen. They'll have to take out loans, or get scholarships, or work their way through school. It's just the way it is.

 

:iagree:

 

My oldest (15) is in a perpetual snit about the fact that we won't be paying for her college education. We have told her that we will do what we can, but the lion's share will fall to her. Somehow she got the idea that we owe her a college education, even though both dh and I have explained that we worked and took loans to get through college. In fact, I was just talking about this with my mom today, and she she reminded me that I got up at 5:40 five days a week to work in the dining hall during breakfast, and then I remembered that I also worked from 7:30 to 9:00 five days a week cleaning up in the dining hall after dinner. I also babysat full time every summer before and during college and saved 90% of what I earned. I also babysat for families in the town where I went to college. Apparently dd is too special to have to do that. ;) In fact, she was interested in getting a summer job this year, but when we told her that 75% of what she made would go into savings for college, she decided it wasn't worth the hassle to work.

 

I guess she'll be in for a big surprise when college time comes.

 

I know I sound cavalier about this. We talk to dd frequently about planning for college. For some reason she has yet to take us seriously.

 

Tara

[Jan in SC]

I don't think it will be possible for my children to pay their way through college. If they go to the same state school we did, it will be a minimum of$15,000 per year- tuition only. I really hope to be able to pay at least half per year.

 

We don't have a "true" community college, but rather a technical school. We are very hesitant to send them there. It would eliminate the possibility of grad school.

[Amy Jo]

Seems like if college costs continue to escalate, it isn't going to make sense to go to college anymore. If my kids can't pay for their education in their lifetime, what makes me think it is a wise investment for me? There are a lot of jobs that don't require college and still pay well. There are a lot of ways to get an education, too.

 

My dh is a lawyer, so I am not anti-college. I'm just anti-bad choices. I will sit down with all my kids to analyze their career choices, earning power, and investment (schooling) needed.

 

:iagree:

[Mosaicmind]

Even with large student loans you can still own a house...we still have about $100,000 to pay off in student loans, and we own a house.

 

On the other hand, having $7000 or $10000 dollars in savings isn't always helpful because it is added to the amount you can pay...some families end up paying more because of having that much in savings.

 

And some of us don't have $25/mo to put towards college savings anyway. Yes, I would love to pay for my kids college education. But in all honesty...it's not going to happen. They'll have to take out loans, or get scholarships, or work their way through school. It's just the way it is.

 

That is us. There was no way and still is no way for us to put $25/kid towards college or even just one kid. We told our kids from the beginning that we would help where we could, i.e. let them live at home, pay for books, help with food, ect....but no way could we pay for college not even some. If we do it for one, we have to do it for all and there is just no way.

 

I already have $30000 in student loans and I will rack up more going for my master's. I anticipate they will have to get loans too unless they get good scholarships, grants, ect...

[FO4UR]

dh and I are still paying on OUR student loans. I hope to get them paid off before they go to college...

 

My dc are still so young that the economy and education climate will change a few times before they go to college. There will always be creative ways to get to the career you want. It will always be hard work.

 

I will do the best I can, but it doesn't make sense to save at 2% interest instead of paying off debt with higher interest rates. I would put the dc in ps so I could work FT to pay debt/save, but that again is putting the cart before the horse...what good is a college education if a person is illiterate???

 

It's a good idea if you have the means (to save lots now), but not the best idea for everyone (like myself, paying off debt first).

[Riceballmommy]

I opened up an account for my daughter shortly after she was born. I've made a few larger deposits $25-$50, but mostly we save pennies in a jar for her. When the jar is full I cash out the pennies and put that money in her account. If she gets an extra dollar here or there I throw that in too. I can't afford $25/month right now to go into her account, though I'd eventually like to be able to give her at least $10 a month on top of the pennies we save. It feels like I just went through the process of realizing that even if your parents are poor you still might not be able to pay for college. I filled out my Fafsa in for 2004, and had an EFC of 0. Even with the EFC of 0, I still had to apply for a student loan, and after the student loan I was $6,000 short. My mother would not apply for the parent loan, so I went to community college. With an EFC of 0, at community college I had all my tuition paid for plus plenty left over for books.

So I definitely advocate saving anything you can, and going to a community college if all else fails,or just to cut down on some of the costs in the begining.

[Lady Q]

Luckily for my kids, they have a nice grandfather who puts money into their college savings account every year.

 

Honestly, though, college costs are astoundingly high. I'm just waiting for some kind of implosion on that front. Surely surely the way tuition costs keep going up is not sustainable.

[razorbackmama]

Honestly, though, college costs are astoundingly high. I'm just waiting for some kind of implosion on that front. Surely surely the way tuition costs keep going up is not sustainable.

 

I wonder about this as well.

 

We are still paying for my dh's vet degree. I still have a couple thousand left in my student loans...AND I DON'T HAVE A DEGREE AT ALL. That fact right there is what makes me sick about student loans. I will try to steer my kids clear of them.

 

BUT nope, we can't afford $25/month for our kids right now...that's $175/month. We spend about 1/4 of dh's income on debt repayment (some of it are student loans, and the rest is just us being stupid and trusting his father ROFLOL).

 

We really have no clue what we'll do, but at this point we definitely know what we CAN'T do.:tongue_smilie:

[Crimson Wife]

Now, if you are wanting to go to Harvard or something, that may be more tricky, but frankly, going to an ivy-league school for undergraduate doesn't make sense to me anyways, but that's another post all together.

 

Actually, Harvard is FREE for families with an income <$60,000. No tuition or room & board charges. Several of the other top schools have similar policies- Princeton, Yale, Stanford, Columbia, and Duke.

 

If you've got a bright student who can get into an Ivy caliber school, please don't rule them out because of the "sticker" price. You may well find once all the financial aid is in, it's actually cheaper to attend Harvard than your local state university.

[Guest Dulcimeramy]

Actually, Harvard is FREE for families with an income <$60,000. No tuition or room & board charges. Several of the other top schools have similar policies- Princeton, Yale, Stanford, Columbia, and Duke.

 

If you've got a bright student who can get into an Ivy caliber school, please don't rule them out because of the "sticker" price. You may well find once all the financial aid is in, it's actually cheaper to attend Harvard than your local state university.

 

Stunned! I did not know this. Off to learn more....