College Savings Reality Check JAWM

[fairfarmhand]

I was reading yesterday in the paper about TN Promise and how it is playing out. MY hope is that this program continues to help pay the college costs of many young people.

 

Basically, if you have a decent GPA in the state, you are guaranteed a taxpayer funded 2 yrs of community college. The freshmen in college this year are the first group using the program. There are mandatory things happening, like counseling meetings and community service hours that the kids have to do. Which I like because it seems that there is some support for young people as they begin college.

 

Then there's the HOPE scholarship in TN, lottery funds that pay for kids to go to 4 yr schools.

 

My hope is that these programs are copied in other states.

[madteaparty]

Also whenever having these conversations I do feel like... nobody talks about their own college journey. How did you guys pay for college? Am I on some generational cusp where we were the first ones to take out loans even while working 30 hours a week during school and 80 over summers?

My parents paid for one year out of 4 and I worked and paid for the rest, while living for free with relatives. Loans for law school, where I could have gone for free (merit scholarships) but decided to go to a higher ranked school instead.

If I have to get a job specifically to pay for the kids' education, I hope I'm able to.

Edited November 24, 2015 by madteaparty

[SparklyUnicorn]

http://www.fhsu.edu/virtualcollege/admissions/tuition/

 

Here is an alternative to check out just in case some of you are at the point of looking right now. Online and accredited. Also, I just remembered that Liberty University grants good discounts for children of active military personnel or veterans.

 

They charge a ton more if you aren't an instate resident though.

[Tsuga]

Minimum wage at $7.25 * 20 hours per week *50 weeks per year * 10 years = $72,500

 

Subtracting 15% income tax and 7.5% FICA/Medicare leaves about $56,000.

 

Just how much is your in-state tuition?

 

A few other things to keep in mind:

1. College costs are expected to be paid from past, present, and future earnings. In other words, savings (past earnings), present  income, and loans (future earnings).  You aren't expected to have 100% of 4-years of costs on day 1.

2. If AOC continues to be extended, that's $2,500 of eligible costs that is refunded to you as a tax credit each year.

 

Yes, precisely. I have two children, so it is about $12k/year for one, $24k/year plus books and housing (mortgage is a real cost: we could have a much smaller house for much less but we are choosing larger so that our kids can stay local--college is not the only factor here, there are a lot of family issues and kid-related emotional health etc. issues that factor into home-buying decisions, so this is not a college-savings question, just letting you know that it's a real cost), equals over $100k for two kids.

 

The minimum wage is much higher though. Right now it's nearly $10 and will be higher in Seattle. $10*20*50*10=$100,000.

 

Which doesn't cover it, not including housing and food and transport and all that. It would JUST cover tuition only.

 

And that's only the bio kids of course.

 

 

 

Crazy what you PNW people are paying for a mere CC.

 

It's half the state U cost. :( People have no choice.

 

CA is very, very inexpensive. You have no idea how awesome that is. When they talk about cutting it and stripping away the "entitlements" keep that in mind. I know the CA colleges have come under fire for being wasteful... and maybe they are. But honestly, you guys have it really, really good. It's not only us. CA is really unique in this regard.

[Sneezyone]

Also whenever having these conversations I do feel like... nobody talks about their own college journey. How did you guys pay for college? Am I on some generational cusp where we were the first ones to take out loans even while working 30 hours a week during school and 80 over summers? I remember all this stuff happening to ME. I'll never forget literally drooling looking at the vegetarian chili... my professor bought it for me! I was so hungry.

 

So I remember well, studying, the walks to the computer lab. I feel like others talk about their kids' experiences but I remember my own. Nothing seems to have changed much since then. People who get scholarships say "you should try scholarships" but I don't remember that working for many people except the Catholics. I mean some people get lucky but as a strategy it doesn't seem wise.

 

Oh no, that was my experience too. I was an independent student at age 19 and estranged from my mother (who was making six figures but spending it on her boyfriend and my sister). I, too, was a NM Semifinalist. I got offered a hefty package to attend Texas A&M but the school was a terrible, horrible fit for me. I visited just to be sure. The only college counseling or scholarship info. I got was what I could search myself on dial-up AOL as my Arkansan "counselor" hated my uppity family/self. In college, I worked max. hours at a year-round work-study job that also doubled as my mandatory (unpaid) internship, and my boyfriend (now DH) was sending me money for food. I had max. Pell grants every year. I lived on campus during the summer because I had nowhere else to go. I got bags of avocados and oranges from my dad's girlfriend's trees. I practically lived in the computer lab. I probably qualified for TANF but was too proud to ask. I ended up with 30K in student loans and 5K in credit card debt at the end. I graduated on sheer willpower alone and will never, ever, ever, do to my kids what was done to me. The resentment runs deep.

Edited November 24, 2015 by Sneezyone

[Liz CA]

They charge a ton more if you aren't an instate resident though.

 

No, if you are a virtual student (online) you get the same rate as in state.

 

Correction: an online student pays $194.14 per unit versus a resident paying around $155 per unit but online is not as high as out of state on campus student.

Edited November 24, 2015 by Liz CA

[FairProspects]

Nm, that was some weird out of state program.

Edited November 24, 2015 by FairProspects

[Arcadia]

At this point in time, we have nothing saved up for our kids college. My parents gave them each enough to fund an associates degree here with leftover or a year of in state tuition.

 

My parents paid for my college education, my hubby was on scholarships from bachelors to phd. So we both graduated with no student debt and money in the bank.

 

And if your children have any interest in golf at all, many excellent schools have full scholarships for golf caddies, so have them start being a caddy as soon as they are eligible. I don't have the link right now, but this is a little known but very lucrative scholarship program. Some of the schools even have special houses for the scholarship recipients.

My kids like golf, too young to try to be a caddy.

 

Googled for the link

http://www.wgaesf.org/site/c.dwJTKiO0JgI8G/b.6086575/k.71A1/Scholarship_Chapters.htm

Edited November 24, 2015 by Arcadia

[Tsuga]

Re: Liberty: That is very kind of you, Liz, but I doubt my Muslim/Atheist heritage (and so far, culturally atheist, religiously Muslim) children would be welcome at Liberty, even if their father is actively giving his linguistic and all other skills to defeat terrorism, which he hates with a passion.

 

Funny... I just realized... isn't it crazy, how most of the vets in our family were Mexican, Native American, Japanese, Muslim... always serving with honor... always commended. Highest ranked family member in the military is an atheist. Doesn't really fit, does it... except when you're freaks like us.

[Frances]

Oh no, that was my experience too. I was an independent student at age 19 and estranged from my mother (who was making six figures but spending it on her boyfriend and my sister). I, too, was a NM Semifinalist. I got offered a hefty package to attend Texas A&M but the school was a terrible, horrible fit for me. I visited just to be sure. The only college counseling or scholarship info. I got was what I could search myself on dial-up AOL as my Arkansan "counselor" hated my uppity family/self. In college, I worked max. hours at a year-round work-study job that also doubled as my mandatory (unpaid) internship, and my boyfriend (now DH) was sending me money for food. I had max. Pell grants every year. I lived on campus during the summer because I had nowhere else to go. I got bags of avocados and oranges from my dad's girlfriend's trees. I practically lived in the computer lab. I probably qualified for TANF but was too proud to ask. I ended up with 30K in student loans and 5K in credit card debt at the end. I graduated on sheer willpower alone and will never, ever, ever, do to my kids what was done to me. The resentment runs deep.

Wow! I'm shocked by some of the stories on this thread. My husband and I were both strong students, but not NM level. We attended one of "colleges that change lives" LACs and each of us received the top merit scholarship. We were both from middle or lower middle class families with one breadwinner and received a small amount of $ from our parents, maybe about $100 to $200 per month. We both worked summers and had work study during the school year. Both of us graduated with $8K in loans. Academic grad school for both of us was completely covered by scholarships, tuition remission, and research and teaching stipends. My husband's professional doctorate was covered by one year of savings (from the only year in our marriage up to that point where we both worked full time), my current earnings, his summer earnings, and student loans we took out because we knew he would likely be offered loan payments as a signing bonus. Being married during his professional program enabled my husband to borrow significantly less than his single friends. Combining employer payments and ours, we easily paid off his loans in five years.

[Matryoshka]

See my link above. For what you are paying at a local CC you can attend FHSU and several other remotely located universities with good online programs.

 

Most online classes haven't worked at all for my dd in high school - can't imagine risking it for college...

 

Crazy what you PNW people are paying for a mere CC.

Heh... I'm in a different high COL area - the ANE (Atlantic North East ;) )

[KungFuPanda]

Wait, $500 per month isn't the going rate for CC everywhere? Stupid HCOL area !!!

 

Edited to include more detail for the Sparkly Unicorn Bacon-lady.

Edited November 24, 2015 by KungFuPanda

[SparklyUnicorn]

No, if you are a virtual student (online) you get the same rate as in state.

 

Correction: an online student pays $194.14 per unit versus a resident paying around $155 per unit but online is not as high as out of state on campus student.

 

There may also be additional fees for on-line (here they charge extra for online). 

 

Granted, it's still not a terrible price.

[SparklyUnicorn]

Wait, $500 isn't the going rate for CC everywhere? Stupid HCOL area !!!

 

$500 per what?

 

(I know you are being sarcastic.)

[SKL]

 

I will talk with a savings rep about money market and moving my 529 there. Anything is better than where I have it. What a scam. I'd have had more if I had left it in a checking account! I don't want to waste the money I'm getting now as well. Thanks, SKL.

 

Money market is the lowest-risk / lowest-reward investment where you put money away and can't touch it for a while.  It always earns some %, never loses, and keeps up with inflation or better.

 

The guy who does my taxes has a child of similar age as mine, and he advised me that state 529 funds available to me were not worth it, so I never even looked into that option.

 

I've been saving for somewhere between 15 and 20 years.  A lot has happened in the markets during that time.  The only hit my savings have taken has been in interest rates.  Around the time I became a parent, the interest rates were high enough that I could have lived (frugally) off interest.  Then rates fell and have never come back up.

[Tsuga]

They charge a ton more if you aren't an instate resident though.

 

Yes. And rightly so, of course--it's Florida taxpayers contributing to their own society and their own children. We do have some programs in WA but my family doesn't qualify.

 

The thing is, the assumption is that it's all linear.

 

No recession, no divorce, no time off for kids. If I'm making $150k by the time she's 18, I must have been saving $30k/year up to that point, right? Certainly have never been on WIC. But I'm not an outlier, I know it. I know SO MANY people like myself in my generation.

 

$500 per what?

 

 

Month, or about $1200 for 2.5 months of tuition plus fees.

 

 

 

Most online classes haven't worked at all for my dd in high school - can't imagine risking it for college...

 

 

I agree. OL works for a certain type of student and a certain type of class. It can be a godsend for single parents who need a very specific, technical degree. It is not necessarily the best for learning core concepts and some people simply don't learn that way, though they can interact that way. For me, it's like trying to go to school at a night club. I DO think there's a place for it but it should be well-managed.

 

I didn't work this hard to have that be my kids' only choice, though.

 

 

 

Wow! I'm shocked by some of the stories on this thread. My husband and I were both strong students, but not NM level. We attended one of "colleges that change lives" LACs and each of us received the top merit scholarship. We were both from middle or lower middle class families with one breadwinner and received a small amount of $ from our parents, maybe about $100 to $200 per month. We both worked summers and had work study during the school year. Both of us graduated with $8K in loans. Academic grad school for both of us was completely covered by scholarships, tuition remission, and research and teaching stipends. My husband's professional doctorate was covered by one year of savings (from the only year in our marriage up to that point where we both worked full time), my current earnings, his summer earnings, and student loans we took out because we knew he would likely be offered loan payments as a signing bonus. Being married during his professional program enabled my husband to borrow significantly less than his single friends. Combining employer payments and ours, we easily paid off his loans in five years.

 

Gosh! That sounds awesome.

 

I have worked every month of my life except maternity leave--one reason I stayed with my ex-h so long, I was working but very part time just to keep up skills--and never had those chances.

 

I can't imagine being able to attend an LAC with scholarships + $200 / month and a simple job!

 

Can I ask when this was, or at least, where? I'm from Washington State and graduated mid-1990s. It's nothing like Massachusetts or New York or anything, but competitive. As you can see on this thread, my story is not uncommon. That is the experience of most people I know.

 

I thought I'd get scholarships but after applying two years in a row, decided it was a scam. So sick of paying money that could fund my entire protein for a month, on these fees to apply, and of course they never chose me.

 

I'm not saying I deserved it--obviously not--but i didn't understand why everyone thought I would get scholarships in HS when clearly, getting to my state school, I was a dime a dozen. Everyone had something great about them. If not academics, then sport.

 

The only people who really enjoyed their time were the kids with well-off families.

 

My dream is that my kids will go to school and enjoy that.

 

Sneezyone's experience if very similar to the one I know many of our current CC students have and very similar to that of many people in my generation.

 

And again, yes I most certainly did apply to LACs and did get scholarships but they came nowhere close to offering what could make up for the low tuition of our (well-ranked, kind and friendly) local state universities.

 

I feel like you got the dream. What was supposed to be. I just wasn't good enough... essay not sparkly enough, music scores at state not high enough, SATs not high enough. Same for my partner who was in private or charter schools most of his education.

 

Of course we struggle to give our own kids the best but the idea that there is "all this scholarship money" out there... well it rings hollow. The one thing that has worked for me in life is lots of work and low expectations.

 

If we get the house we're bidding on, and I continue to save child support, then we can flip the home to pay for his kids mostly and pay for mine from child support.

 

Sure, they're all 90th percentile plus in math and LA, but in my experience, that means nothing. I don't know why. I don't know why the hard work doesn't count, why they don't want us. But they don't. Everyone said, "You'll get so many scholarships!"

 

I personally don't know what I did wrong but aside from a fellowship and auto-waivers I didn't even apply for--based on GPA and test scores--I've never seen a penny of merit aid from the state schools. ETA: And that was what nearly everyone got.

 

I think the truth is that while it seems high, I'm just not that good compared to other people in my state, nor are my kids. I have to go in with that assumption or risk wasting time again on things that will never happen.

Edited November 24, 2015 by Tsuga

[SKL]

To answer your question about how "we" managed to go to college, well, let's go back to the early 1980s, LOL.  Times were different then.  I had some very small grants and wimpy jobs, but mainly I borrowed roughly $10,000 to get through undergrad at a state university.  I lived at home (my parents' home, that is) and attended regional campuses.  Most of my siblings did similar.

 

The other $75,000 in student loans were from grad school.  :P  I did pay them off in 7 years though.

 

My niece is going to the same regional campus of the same state university.  I haven't looked into the cost lately - I should probably do that.  ... OK so I looked it up, and the cost is about 4x-5x what it cost me back in the 80s.  My niece is taking advantage of whatever financial aid she can get, and I don't know the details, but I know her family doesn't have any college fund for her.  I set aside some $ for her and they used some the first year, but then decided to hold off until they run out of financial aid options.

 

My nephew is a super awesome brain, and I'm pretty sure he's attending college (at a state university) on a full scholarship.  He lives with his parents as well.

[SeaConquest]

I'm banking on dual citizenship paying off. McGill is dirt cheap for Quebec residents. A few months living with Grandma will take care of that.

[SKL]

I should probably add that although my family includes mostly "gifted" people, most of us got little or no scholarship money.  Not that we tried very aggressively for it.

 

I don't assume scholarships will be there for my kids.  One of mine is brainy, but she's also kind of lazy.  I'm not into stiff competition and I don't think my kids will be, either.

[Frances]

Yes. And rightly so, of course--it's Florida taxpayers contributing to their own society and their own children. We do have some programs in WA but my family doesn't qualify.

 

The thing is, the assumption is that it's all linear.

 

No recession, no divorce, no time off for kids. If I'm making $150k by the time she's 18, I must have been saving $30k/year up to that point, right? Certainly have never been on WIC. But I'm not an outlier, I know it. I know SO MANY people like myself in my generation.

 

 

Month, or about $1200 for 2.5 months of tuition plus fees.

 

 

 

I agree. OL works for a certain type of student and a certain type of class. It can be a godsend for single parents who need a very specific, technical degree. It is not necessarily the best for learning core concepts and some people simply don't learn that way, though they can interact that way. For me, it's like trying to go to school at a night club. I DO think there's a place for it but it should be well-managed.

 

I didn't work this hard to have that be my kids' only choice, though.

 

 

Gosh! That sounds awesome.

 

I have worked every month of my life except maternity leave--one reason I stayed with my ex-h so long, I was working but very part time just to keep up skills--and never had those chances.

 

I can't imagine being able to attend an LAC with scholarships + $200 / month and a simple job!

 

Can I ask when this was, or at least, where? I'm from Washington State and graduated mid-1990s. It's nothing like Massachusetts or New York or anything, but competitive. As you can see on this thread, my story is not uncommon. That is the experience of most people I know.

 

I thought I'd get scholarships but after applying two years in a row, decided it was a scam. So sick of paying money that could fund my entire protein for a month, on these fees to apply, and of course they never chose me.

 

I'm not saying I deserved it--obviously not--but i didn't understand why everyone thought I would get scholarships in HS when clearly, getting to my state school, I was a dime a dozen. Everyone had something great about them. If not academics, then sport.

 

The only people who really enjoyed their time were the kids with well-off families.

 

My dream is that my kids will go to school and enjoy that.

 

Sneezyone's experience if very similar to the one I know many of our current CC students have and very similar to that of many people in my generation.

 

And again, yes I most certainly did apply to LACs and did get scholarships but they came nowhere close to offering what could make up for the low tuition of our (well-ranked, kind and friendly) local state universities.

 

I feel like you got the dream. What was supposed to be. I just wasn't good enough... essay not sparkly enough, music scores at state not high enough, SATs not high enough. Same for my partner who was in private or charter schools most of his education.

 

Of course we struggle to give our own kids the best but the idea that there is "all this scholarship money" out there... well it rings hollow. The one thing that has worked for me in life is lots of work and low expectations.

 

If we get the house we're bidding on, and I continue to save child support, then we can flip the home to pay for his kids mostly and pay for mine from child support.

 

Sure, they're all 90th percentile plus in math and LA, but in my experience, that means nothing. I don't know why. I don't know why the hard work doesn't count, why they don't want us. But they don't. Everyone said, "You'll get so many scholarships!"

 

I personally don't know what I did wrong but aside from a fellowship and auto-waivers I didn't even apply for--based on GPA and test scores--I've never seen a penny of merit aid from the state schools. ETA: And that was what nearly everyone got.

 

I think the truth is that while it seems high, I'm just not that good compared to other people in my state, nor are my kids. I have to go in with that assumption or risk wasting time again on things that will never happen.

To answer your question, my husband and I attended undergrad in the Midwest in the late 1980s. Our scholarships were based primarily on grades and test scores, no essays letters or letters of recommendation. I'm not sure how much activities counted. We both attended relatively small high schools, so it was easy to be involved in lots of stuff and have leadership positions, but neither of us had any outstanding or unique achievements. Maybe it helped that LACs are a dime a dozen in the Midwest compared to here in the PNW where we live now. I went to high school made up predominantly of the children of working class parents with a few nurses and teachers in the mix. At the time, I never heard of anyone struggling to pay for college like some of the stories on this thread. And my high school classmates went to a wide variety of state and private schools, although all in the Midwest.

[Tsuga]

I don't in any way want to make light of this concern. However, I would encourage everyone who is worried about paying for "college" to remember that there are approximately a bazillion different ways to go to -- and pay for -- college. "College" doesn't have to mean four years full time at a private or large, expensive state school living on campus. I know a lot of people who are choosing to do two years at a community college or to knock out a year or more worth of credits via dual enrollment while still in high school, which cuts the total cost considerably from the "averages" that too often get bandied about in news stories.

 

Also, I don't personally know one single person who is paying the sticker price at the college he or she attends. Everyone seems to be getting scholarships and grants that very effectively discount the cost.

 

It's a little bit like the widespread terror about "getting in to college." The reality is that there are many, many more colleges in this country than most people think, and there is a place and a path for every student who truly wants an education and not just an impressive bumper sticker.

 

Let's use my son as an example.

 

He did a year of dual enrollment at our local community college, which cost us nothing except what we paid for textbooks. He self-studied for and took two CLEPs, which cost less than $100 each. Between the two, he earned about a year's worth of credits before graduating from high school.

 

I should say that he is a capable but fairly indifferent student. His unweighted GPA came in at 3.7, with a pretty standard college prep curriculum, and he did just enough honors and dual enrollment classes to earn the "honors designation" we promised for his transcript. That GPA included courses many folks here wouldn't deign to list on a transcript, including driver's ed, and he had only the minimal two years of foreign language. He had no advanced math. No APs. His highest ACT composite was a 27. His passions mostly relate to performing arts, and he considered high school a necessary evil to get him the college-level training he wanted in his field. He kept his grades up because we made it clear we wouldn't foot the bill for his dance classes if he didn't.

 

He felt strongly that he wanted to attend a small-ish liberal arts college. We had serious talks about the fact that most of the schools he was really excited about were laughably beyond our ability to pay. We had essentially no savings earmarked for his college, meaning our contribution had to be limited to what we could reasonably expect I could earn returning to work (part time at first) after being home for nearly 18 years. To be safe, I set that limit at $10,000 or less per year. That would have been plenty to pay full price out of pocket for community college or the local state university if he lived at home. We made sure he understood that would have to be the fallback position if he was not able to get enough scholarship/grant money to cover the gap at one of his preferred schools.

 

He applied mostly to colleges at which his stats put him in the upper 25% of admitted students. In other words, he didn't apply to super-selective, elite schools. He wasn't interested in jumping through the hoops that would have been necessary in order to do so and was equally uninterested in a high-pressure, extremely competitive environment. He knew himself well enough to know that he learns best and is most engaged when he has ample opportunity to perform, and we figured out early on that was most likely to happen at smaller, less prestigious schools.

 

Edited to add: We do not qualify for any need-based aid at all. So, everything my son was awarded was based on either academic merit or performance talent.

 

When the dust all settled, he ended up with scholarship/grant packages that made three colleges financially feasible. One of them was the one he had already decided was his favorite, so the decision was effectively made as soon as we got that envelope.

 

He's now almost midway through his second year and is very happy with his choice. He's getting great training and tons of personal attention and is performing multiple times each semester. He's comfortable socially and having to work just a bit to keep his grades high enough to hold onto his scholarships. ("Work" may be an over-statement; it's more that he has to pay attention, show up for class and do the assignments.)

 

The "sticker price" for this school is close to $40,000 per year. We're paying less than $10,000 out of pocket. And, because of the credits he earned prior to enrolling -- all of which were accepted by the college -- he could graduate in three years, if he chose to do so. Since he was young when he started and is doing a double major, we've strongly encouraged him not to rush. But, if we were more worried about cost, it would be another way to trim the budget.

 

So, no, he's not going to an Ivy League school, but he's getting a good education that is appropriate for his path, having a great time doing it, and not costing us a penny more than we can manage.

 

Honest, if you keep an open mind and don't panic, this doesn't have to be nearly as big an issue as many folks think.

Sounds great. I was 3.89 Gpa, ape, state music competition, three music extracurricular a, lettered in cheer, national merit semifinalist, blah blah and as far as my state Us were concerned I could take them or leave them. The Christian LACs I applied to offered me much less than your son got.

 

Sounds like Florida has great programs for its youth. In Washington you work. We have nothing like that. UW doesn't take many CLEPs and engineering and some other majors don't take APs. They don't even take CC classes for several majors.

 

It's very competitive all the way through. I wonder if I should just send my kids to Florida or Texas for an education. Sounds like the OOS is cheaper and standards far lower (no offense but a 75% merit aid for someone not getting even top 5%.. That is just unheard of here.).

 

Some regional Us will take CC credits but then you can't live at home. I remember walking two hours to work. Ugh.

 

Something to think about, for sure. There must be some massively-well endowed college in Arkansas with an excellent engineering program just waiting for a little girl from Washington State who is not a Christian.

 

Of course that's what DP did.

 

Then he came home after 1 year because New Yorkers are hard (to his young tender college boy mind) and went to CC and then UW. Which is where so many of us went because I guess I never considered a state school other than UW, WSU, UO or OSU and the regionals. Why... Who goes to Texas when the UW and OSU are RIGHT HERE? Or if you must, WSU. (Cue sigh.)

 

Seriously though I did not consider other regionals. I thought it would be too much. Maybe not.

[Tsuga]

To answer your question, my husband and I attended undergrad in the Midwest in the late 1980s. Our scholarships were based primarily on grades and test scores, no essays letters or letters of recommendation. I'm not sure how much activities counted. We both attended relatively small high schools, so it was easy to be involved in lots of stuff and have leadership positions, but neither of us had any outstanding or unique achievements. Maybe it helped that LACs are a dime a dozen in the Midwest compared to here in the PNW where we live now. I went to high school made up predominantly of the children of working class parents with a few nurses and teachers in the mix. At the time, I never heard of anyone struggling to pay for college like some of the stories on this thread. And my high school classmates went to a wide variety of state and private schools, although all in the Midwest.

I think it really ramped up in the 90s regarding costs.

 

And the Midwest LACs are more common.

 

Still, the kids like to ski. Maybe a nice college in Minnesota could be just the thing.

 

This has been helpful. I thought the whole country was as competitive and expensive WRT higher Ed as here. I know PLU and SPU and SU were off my lists for sure as a non-Lutheran/Catholic (couldn't apply for the main scholarships). I hear Minnesota is really nice. I have been there.

 

I should start talking it up!!! Maybe take the kids to a nice little LAC there on our next road trip.

[Nart]

We had three big savings plans in the past ten years- save up for a down payment on a house, save for retirement via pre-tax retirement savings plan at work, and save for college. We only managed to do the first two. We have no money left over to start a college savings account. We figure that we can take out loans for college but no one will loan us money for retirement.

[Laura Corin]

And studying in other countries with free or low cost tuition and low living costs is another option. As an example, Germany is moving towards having more and more of its programs taught in English. Someone recently posted a link in another thread.

I will insert my usual caveat at this point: be very aware that many European university courses are very different in feel. There is much less hand holding. Calvin currently has a couple of compulsory hours a week. The rest is all on him to research and produce work. He's never had a quiz and was expected to work completely independently towards his end of year exams. Just be aware of what you are buying.

[Frances]

I will insert my usual caveat at this point: be very aware that many European university courses are very different in feel. There is much less hand holding. Calvin currently has a couple of compulsory hours a week. The rest is all on him to research and produce work. He's never had a quiz and was expected to work completely independently towards his end of year exams. Just be aware of what you are buying.

Yes, my son was in Germany this summer and this is how he described it. He would love it, but I know it would not be a good fit for many US students, including my two nieces who went to top 20 LACs. The link someone posted about this a couple of weeks ago had video interviews with US citizens describing this very thing.

[J-rap]

If you think you can have 70% saved for your children, that's great!  I think you'll be fine.  We live in the Midwest and my kids have gotten great scholarships at the LAC's here.  Some of their grades/scores are high, but others are just medium, and they all got good scholarships (offered by the schools).  There's no way we could have afforded it otherwise.   You're a smart woman, and your kids probably are too.  I bet you'll be surprised at what they can get.  Being active in an activity helps too.  For example, the fact that my dd has sung in choirs and is singing in the college choir gives her an extra $5,000/year scholarship. 

 

Some of my kids did it differently, too.  One dd did her whole university career at a private college in Latin America, where it averages $5,000/year.  One dd lived with relatives who lived in her college town.  My son got government aid because his job laid him off so he went back to school and now they're paying for half.

 

As for me, I went to cc in California in the late 70's when it was free.  When I moved to the Midwest, a top private LAC was $5,000/year.  (Boy has that changed!)

 

Colleges are trying to be more creative now though.  They realize that they have to.  One LAC in our state recently cutback their tuition by quite a bit, and is guaranteeing that price for all four years.  Another just announced yesterday that they are offering a 2-year degree and a much reduced tuition.  I think things like that are just going to keep happening during the next 10 years.

 

Don't despair!  You'll be fine.

[bettyandbob]

Things changed.

 

I attended an in state LAC ( public ivy) early 80s. It was considered very expensive for in state--5K for tuition, room, board and fees. My siblings attended a large in state university for 3K. It was not hard to come up with college costs if you worked you butt off summers and kept working a small amount (10 hours/week) during the year. No loans for us.

 

There's no way to work enough to pay in state tuition and fees at 4 year schools. I know young people who are struggling to work and pay cc tuition. I think the upturn in costs really came in the mid to late 90s. My alma mater now charges about 8.5 times what I paid and the school that my siblings attended is now about 10 times more than it was. Meanwhile minimum wage has gone up, but it is not even triple what it was.

 

We stated paying into a state account for tuition when ds was small. We paid upfront for four years of tuition for him. It appears he might only use three, which is good because we can transfer the remainder to his sister. We paid for two years for her because that was all we could do. So we just have worry about room, board and fees. Room, board and fees is still hefty to us, but it's very important to me that my dc get through with no loans.

[Guest]

I don't in any way want to make light of this concern. However, I would encourage everyone who is worried about paying for "college" to remember that there are approximately a bazillion different ways to go to -- and pay for -- college. "College" doesn't have to mean four years full time at a private or large, expensive state school living on campus. I know a lot of people who are choosing to do two years at a community college or to knock out a year or more worth of credits via dual enrollment while still in high school, which cuts the total cost considerably from the "averages" that too often get bandied abo

Yup. It's this. It seemed insurmountable when My kids were small, mostly because calculators and books talk about college as if there is only one possibility: paying fully for four or more years and having every penny saved in advance. In reality there are so many routes and avenues.

 

To the OP, I recommend reading Debt Free U by Zac Bissionette. I do not love this author, but I like the way he thinks. Reading this book helped me understand that there are many ways to do it.

[creekland]

Also whenever having these conversations I do feel like... nobody talks about their own college journey. How did you guys pay for college? 

 

I paid for college with a ROTC scholarship and got a little extra spending money working (work study) in the dining hall.  Due to the asthma I supposedly have, the AF kicked me out senior year (even though I had accomplished field training and summer assignments without issues).  Fortunately, Va Tech picked up all of my senior year bill except 2K which I had loans for.

 

Hubby ended up with somewhere around 15K in student loans.

 

We paid off those loans within 5 years after graduation.

 

CC here was roughly $250/credit hour ($750 3 hr class) when my guys attended (DE) a few years back.  That didn't include books or lab fees, of course.

 

Quickly googling Millersville's tuition costs (a common state U many of our grads at school attend), it appears to be roughly 11K for in state students and another 10K for room & board.  That's 21K total (not counting fees or books I suspect).  Student loans at any schools my guys liked would be the same.

 

Middle son has saved room cost at his college by being an RA in the dorms the past two years.  All three of my guys have had work study jobs (or other jobs on campus) for their spending money.

 

We pay the difference, but again, what we pay for each boy is pretty much what we'd be paying if they went to Millersville and still had their student loans.  They have better fits at the schools they've chosen.  We pay less than we would be paying at a more nationally known state school like Pitt or Penn St as those schools cost more (but Pitt was close enough for middle son that if he'd wanted to go there we'd have been ok with it).  Merit and/or need based aid can often get school costs down to state school costs in our state esp IF one chooses a school further away.  There's not often as much of a benefit for local schools as most students want to stay within 2 - 3 hours of home, so there's oodles of competition.  Schools don't have to offer much money to attract those students.

[Jane in NC]

Another Midwestern LAC alum here--from back in the day when these schools did not cost an arm and a leg.  Most of my tuition was covered by grants and scholarships.  I worked as an undergrad to pay for living expenses (rent, food--no car) and then chose to work full time while attending college at one point so that I could spend ten weeks in Europe with a rail pass and a list of hostels from Let's Go.  When it was over, I had one small loan that was paid back within a year or two.

 

Everyone in the math department in grad school received an assistantship.  None of us was rich but it was sufficient to pay for basic expenses.  When this phase was over, I had another loan of a couple thousand dollars that I had borrowed to pay for some medical expenses.

 

My husband's parents required that their kids work during the summers but they felt strongly that the job of college students was to be a student.  We decided that we would try to give this gift to our son, hence we began saving for his education at the time of his birth.

 

As The Boy's college counselor, I did a fair amount of research on post secondary education.  We could afford in-state tuition, room and board, but we also knew that private college was an option if merit aid was offered.  Every private college to which he applied offered some form of merit aid--some were more generous than others. Some privates only offer financial aid. 

 

I am surprised when people assume that if Child 1 was not offered aid at the in-state school, then Child 2 should not bother to apply for aid at a private school.  I studied endowments and the types of scholarships offered by colleges, i.e. do they give a few free rides or more partial tuition scholarships.  One of the best pieces of advice I heard at the one home school conference I attended was "Consider your zip code". Students often receive more aid from colleges in other regions of the country than from the school down the road. Colleges like to show that their students come from a broad range of geographic locations.

 

Another thing I realized while wearing my college counselor hat is that tuition is one thing, fees are another.  Massachusetts, for example, offers this great free tuition deal to residents--then nails them on fees. 

 

At one point I made a spread sheet of room and board charges.  Don't assume that privates are more expensive.  Sure Boston University charges a lot, but UC-Berkeley was the most expensive school for room and board back when my son was applying for colleges. Those Midwestern LACs were a deal in comparison.

 

My son attended one of those Midwestern LACs too. One of the perks of his school is a foundation that pays for study/travel abroad. So when he was hired as a low level staff person at a British field school (archaeology), the college paid for his flight for this summer opportunity.  They picked up the cost of air and hotel when he presented at a professional conference. 

 

There is no one formula for all.  I always chuckle when people say students should live at home.  For those of us in rural America, the regional uni or CC in driving distance may limit our student's options.

 

But anyway you slice it, college is expensive.  Hence my mantra "save, save, save".  Be creative when considering options since there is no one formula.  Every family and every student is different.

Edited November 24, 2015 by Jane in NC

[Jenny in Florida]

Sounds like Florida has great programs for its youth. In Washington you work. We have nothing like that. UW doesn't take many CLEPs and engineering and some other majors don't take APs. They don't even take CC classes for several majors.

 

Quick clarification: Although my son did end up choosing to stay in Florida, the other two schools that offered him comparable deals were in Michigan and Neq York.

[TammyS]

 People who get scholarships say "you should try scholarships" but I don't remember that working for many people except the Catholics

 

Huh?  Is there some special "Catholic scholarship" pool I should know about?

[Jane in NC]

Funny... I just realized... isn't it crazy, how most of the vets in our family were Mexican, Native American, Japanese, Muslim... always serving with honor... always commended. Highest ranked family member in the military is an atheist. Doesn't really fit, does it... except when you're freaks like us.

This sounds like a terrific topic for a college app essay: "My Commended Non-mainstream Family".

 

Do any of us really "fit"?

[teachermom2834]

While I don't think our situation applies to Tsuga, for anyone that is reading this thread and feeling despair, I want to offer some encouragement that there is hope in paying for college.  My ds is not National Merit level and while he has some dual enrollment he has no AP scores.  He has a good ACT but not great (top 5% nationally, not top 1%) He has alot of activities but nothing really special.

 

We have very little saved for him.  But he is going to be able to go to college somewhere nice.  He has already been awarded enough in scholarships at our state flagship to make that attainable and the regional LAC have done well for him with scholarships.  Most places have covered most of his tuition with scholarships and we are left with room and board.  This is November, there may still be more money coming at some of these schools to cover more of that.  

 

It won't be FREE.  It won't be easy.  But it will be doable.  He also looked mainly at our state flagship and higher ranked (but not tippy top) LAC.  If he had looked more at regional campuses or less prestigious state schools or less prestigious private schools he could have come closer to the FREE.  

 

This situation won't apply to everyone.  We are in a low cost of living area and there are many nice LAC.  My ds prefers a small LAC so applying to that sort of school isn't a compromise for him.  

 

My takeaways so far are:

 

1)  Don't despair, there are ways and it is doable.

2)  Few people, in my experience, can afford their dream school.  You need to target your applications. You will likely compromise on some of your wants.

3) The amount of time and energy I spent exploring all these options and researching schools and scholarships is not small.  I don't want to know how many hours I spent on net price calculators, etc.  But I have more time than money right now and guiding ds and doing all this research for him has been a big contribution that has translated to scholarship money.

 

 

[Matryoshka]

Another thing I realized while wearing my college counselor hat is that tuition is one thing, fees are another.  Massachusetts, for example, offers this great free tuition deal to residents--then nails them on fees. 

 

Yep.  My ps dd gets the in-state "free" tuition thing for her good test scores.  So, 'tuition' at a state school here is less than $1,000.  "Fees" are about $12-$13,,000.  Whaaat?   Biggest bait-and-switch going.  With all the fees (including one called a 'curriculum fee') charged for everything you could possibly imagine being a cost for going to college, I'm really not sure what 'tuition' is supposed to cover on top of all that - best I can imagine is it's a 'you didn't do well enough on the state tests to escape paying this extra' fee.

 

And then at the flagship, if your grades/scores are good enough to both get the 'free tuition' deal and qualify for the honors program, you have to pay about an extra $1,000 fee to be in the honors program!  It's like anti-merit aid, and nicely cancels out the discount for good test scores.  Woo-hoo.

[Matryoshka]

I will insert my usual caveat at this point: be very aware that many European university courses are very different in feel. There is much less hand holding. Calvin currently has a couple of compulsory hours a week. The rest is all on him to research and produce work. He's never had a quiz and was expected to work completely independently towards his end of year exams. Just be aware of what you are buying.

 

This is why we're not considering a German university my dd who is itching to live in Europe and is already fluent in German to boot.  I think she still needs more structure.

 

She is thinking of Europe for grad school, though.  If she hasn't totally changed her mind about what field she wants to go into by then, she's already identified a good grad program in that field in Denmark (and I think it's taught in English, although she's already thinking she'd like to learn some Danish ; ) )

[DawnM]

 

There is no one formula for all.  I always chuckle when people say students should live at home.  For those of us in rural America, the regional uni or CC in driving distance may limit our student's options.

 

 

 

 

I always say MY kids could live at home and attend the local school.  However, many more rural areas still have a CC option within an hour's drive.   If you are truly in the middle of nowhere, yes, your options may be far more limited.

 

And I never presume that any other family should do as we do.  Every family situation is different, every kid is different.

 

My middle son may very well choose a private 4 year college.  He has already said he wants the 4 year college experience and doesn't want to do early college or dual enrollment.  

 

Meanwhile, oldest starts dual enrollment for one semester in January.

[bettyandbob]

Yeah we live in a very COL area, but a great cc has a satellite campus 20 minute walk from my house and another campus a 20 minute drive. There's a good state university with a variety of programs 25 min drive away (during rush hour that can be an hour drive). So, we do have good options if funds get tighter than they are.

[Matryoshka]

This situation won't apply to everyone.  We are in a low cost of living area and there are many nice LAC.  My ds prefers a small LAC so applying to that sort of school isn't a compromise for him. 

 

It really doesn't apply to everyone.  Here the state flagship is inching toward $30,000 with room, board and fees.  There are not a lot of scholarships for in-state students.  As I said up-thread, they actually charge extra for honors students.  National Merit here is the highest scores in the country - over 30 points higher than in some other states.

 

Our safeties: for one twin, the 2nd biggest state U, which has a good program in her major and miracle of miracles does seem to have some good merit aid that she qualifies for (much more than the flagship), and she only is even in the running because she has really high stats (minimum for the top scholarship is a 4.0 GPA (by their weighting system) and a 34 ACT).  That one is a full-ride.  I'm gobsmacked it exists, as I don't see that any other state U even offers a full-ride (not flagship, not the 2nd-tier ones).  There's also a tuition/fee scholarship for the top 5%, which I think she's in stat-wise (but still no guarantee that you get it, even if she's in range).

 

Other dd whose stats are not so high is looking at a 2nd-tier state U, which is almost $10,000 cheaper than the flagship.  Much less merit aid available, though, and it appears to be a state secret what one can do to qualify.  I did manage to get out of them that the tippy-top merit award there is only for tuition/fees, not room and board.

 

I think the real take away is that everyone should go to school in the Midwest or South.  They seem to have the best aid, and lower tuition overall to begin with, and they like people from far away.  Unfortunately, not everyone wants to go to school in the Midwest or South, and for some kids, they really don't want to go to school so far from home.  (Good deal if you live there, though.  Too bad for those of us in the Northwest and Northeast, apparently).  And it sounds like those living in CA get a really good deal, but they don't woo out-of-staters like the Midwest/South schools do, so that's moot for most of us...

 

Dd with the higher stats is also applying to some private out-of-state schools, mostly in NY state, and if she gets good merit aid and doesn't get a full-ride to the local U, are her first choices. NY has the best tuition in the region.  Their out-of-state public tuition is less than $10K more than our in-state.  The other NE public schools have ridiculously high out-of-state costs - as high as many private schools.

 

[teachermom2834]

It really doesn't apply to everyone.  Here the state flagship is inching toward $30,000 with room, board and fees.  There are not a lot of scholarships for in-state students.  As I said up-thread, they actually charge extra for honors students.  National Merit here is the highest scores in the country - over 30 points higher than in some other states.

 

Our safeties: for one twin, the 2nd biggest state U, which has a good program in her major and miracle of miracles does seem to have some good merit aid that she qualifies for (much more than the flagship), and she only is even in the running because she has really high stats (minimum for the top scholarship is a 4.0 GPA (by their weighting system) and a 34 ACT).  That one is a full-ride.  I'm gobsmacked it exists, as I don't see that any other state U even offers a full-ride (not flagship, not the 2nd-tier ones).  There's also a tuition/fee scholarship for the top 5%, which I think she's in stat-wise (but still no guarantee that you get it, even if she's in range).

 

Other dd whose stats are not so high is looking at a 2nd-tier state U, which is almost $10,000 cheaper than the flagship.  Much less merit aid available, though, and it appears to be a state secret what one can do to qualify.  I did manage to get out of them that the tippy-top merit award there is only for tuition/fees, not room and board.

 

I think the real take away is that everyone should go to school in the Midwest or South.  They seem to have the best aid, and lower tuition overall to begin with, and they like people from far away.  Unfortunately, not everyone wants to go to school in the Midwest or South, and for some kids, they really don't want to go to school so far from home.  (Good deal if you live there, though.  Too bad for those of us in the Northwest and Northeast, apparently).  And it sounds like those living in CA get a really good deal, but they don't woo out-of-staters like the Midwest/South schools do, so that's moot for most of us...

 

Dd with the higher stats is also applying to some private out-of-state schools, mostly in NY state, and if she gets good merit aid and doesn't get a full-ride to the local U, are her first choices. NY has the best tuition in the region.  Their out-of-state public tuition is less than $10K more than our in-state.  The other NE public schools have ridiculously high out-of-state costs - as high as many private schools.

 

I do understand the challenge of the high COL areas and how expensive college is in those areas.  I grew up in the north and now live in the south so I know the difference.  I understand that this is a real challenge in those areas.  But there are alot of people who do live in other areas who see the giant price tags and think their kid just can't go to college.  In most of the country it is possible some way some how.

 

I completely get not wanting to go far away for college.  My own ds does not want to and I am happy for him to stay within a few hours.  I completely get and respect that.  But some people do go far away so they can afford it.  It does remain an option, even if it isn't desirable for your family.  

 

Again, I did say that our situation did not apply to everyone.  I also did say that most people will have to compromise on some of their wants.  

[Jane in NC]

I always say MY kids could live at home and attend the local school.  However, many more rural areas still have a CC option within an hour's drive.   If you are truly in the middle of nowhere, yes, your options may be far more limited.

 

And I never presume that any other family should do as we do.  Every family situation is different, every kid is different.

 

My middle son may very well choose a private 4 year college.  He has already said he wants the 4 year college experience and doesn't want to do early college or dual enrollment.  

 

Meanwhile, oldest starts dual enrollment for one semester in January.

 

The local CC did us a favor in helping justify some of those Mommy grades on the transcript via dual enrollment.

 

Don't get me wrong--I think community colleges offer great opportunities to many.  But they are not always the right fit for every person. Looking back to my son's first year of college, there was not a single course that he took which was offered at our CC.  His college did not have traditional composition courses (that he already took in high school).  Many colleges have gone to writing intensive freshman seminars that allow students to delve into a specific discipline. 

 

If my son had gone the engineering route (which he did not), the local CC would have been a waste of time. They do not offer the math/science courses that engineering students take in their first two years at uni. 

 

But my CC is small compared to many.  So while it is an option, it is not an option that necessarily means a kid would only have two years at university.  It can--depending on the student's area of study.

 

[Bluegoat]

I would second the advice to look at schools outside the US for those who can or must live away from home.  I just looked up the international fees for my university - this is in the province with the highest fees in the country, for a well regarded liberal arts college that has access to all the classes of major university.

 

For international students, tuition + health insurance, cost $9194 per yer in Canadian dollars,   That would be just over $6000 US.  Residence costs round $7000 Cnd$,  and  meal plan $3000 to $4000 Cnd$ depending on the type.  (and people can live off campus.)

 

Depending on circumstances, this kind of arrangement could be a good option for some.

[BlsdMama]

See my link above. For what you are paying at a local CC you can attend FHSU and several other remotely located universities with good online programs. Crazy what you PNW people are paying for a mere CC.

 

 

 

I dunno.  I'm in the Midwest and our CC's college credit rate is $145 per credit.

 

In-state tuition is only about $8-$9k but you have to double that for living on campus, so if living at home isn't an option for DD/DS, then even state colleges can become spendy.

 

I really always thought we would ONLY send our kids to private, Christian college.  However, as a couple still carrying college debt around like a noose, we prefer not to saddle them (and their future families) with debt.  We opted for in-state college tution for Ana and she's chosen to live at home and commute almost an hour a day.  It's been a very wise decision for her.  DS is planning on doing the same.  We can't contribute much for school (and haven't had to because of Ana's scholarships and we have high hopes for DS #2 as well in that area) but we can let them live at home, feed them well, and help them with associated expenses and, apparently, car repairs. :D

 

She's working and I NEVER thought we'd endorse that either.  However, it's taught her to juggle her time much better.  She's actually taking two Honors classes right now, five classes, working 20-30 hours a week, and doing great, grade-wise.  I would have thought that an impossibility so don't write off their contribution to their future and education either. 

 

If I could give one bit of advice it would be this - as homeschooling moms we have a serious leg-up on the public school.  If you have an academic kiddo, please, please pour a lot of effort into test prep.  I think SATs and ACTs are really pretty vital to homeschoolers, or at least in my very limited experience with exactly ONE kid so far. :D

[plansrme]

I think it also is important to remember that not everyone gets to go to their first-choice school.  Neither we parents nor the financial aid machine owes any of our kids their first-choice college.  There are many, many paths to a college education.  It's a pretty fair bet that one or more of those paths will work for your kid, but there may be no path to School X or to four years at School X.  Managing your child's expectations is a critical component of this process.

[BlsdMama]

 

 

If my son had gone the engineering route (which he did not), the local CC would have been a waste of time. They do not offer the math/science courses that engineering students take in their first two years at uni. 

 

 

 

This is very true.  CC can be extraordinarily valuable.  But, for specific majors, it can also be a waste of time.  You also should be checking into your state's dual enrollement perks, if you have any.

 

Here, if our kids test at a specific level (either on ACT or Compass) they are allowed to take some classes totally free, such as GenEd requirements like Composition I & II, Lit classes, Oral Communication.  Also, for advanced math students, they will pay for Trig, Calculus, and classes you may not be able to teach at homeschool/high school that would put them "behind" going into the State U programs.  These credits can add up.  I know for our state kids can earn 23 credits per year.  That gives them sophmore or junior standing.  Now, granted, many of these classes are a waste of time for a student going into Engineering, etc., *however, for many majors it would get their GenEd out of the way.  Not every state will fund dual enrollment and some states will fund 50% and some none at all.  But it is something to check into.

[SKL]

I would add that if I thought my kids would get need-based financial aid, I wouldn't be concerned at all.  But my kids are unlikely to qualify for aid, because I'm a businesswoman, even though I don't bring home much cash.

 

When I talk about savings I have, I'm including it all in one pot.  I don't have "retirement savings" and "education funds."  Whatever gets used up on my kids' school is that much less for my retirement.  I hope my paid-off house lasts and I hope social security and medicare are enough to cover the rest.  Hopefully my kids won't let me starve or freeze to death.

[Spryte]

I don't think that is how Pell Grants work. That 70% (ish) is being saved because we are nowhere near qualifying for Pell! Nowhere near. If we were, how would we ever get that money? It would be spent on food.

 

 

ETA: People getting Pell are really poor you guys. I can't tell you how many people can't believe they don't qualify, and I feel for them. But for real. I don't know how Pell grantees survived up to college, to be honest. WIC, free lunch, probably. To get Pell at a CC you basically have to be an orphan.

 

But that's right... if they work full-time over the summers, that can be a lot. Hopefully they won't need unpaid internships or anything.

 

This is true.  It's been a long time since I went to school, but I went on Pell grants and student loans, and while working.  It was far from easy.  

 

I was not poor growing up, far from it, but was booted from the nest the moment I graduated HS.  Family culture.  I worked for 4 years, then figured out on my own how to go to school.  And had a friend who worked in financial aid who told me how to declare independence so that I could qualify for Pell.  He walked me through it and helped me out, otherwise I'd have had to wait to turn - what? - 26, I think.  

 

I don't wish that on my kids.  

 

We save, but it's not going to be enough.  [sigh]  Watching this thread for tips.

[Shellydon]

I understand. Many people feel this way. Behavioral economists have discovered that people feel twice as strongly about losing x dollars than gaining y dollars. For example, losing $25 makes people feel as strongly bad as gaining $50 makes them feel strongly good.

 

I think what people leave out of the equation is that in the long run, inflation will always get you. So while it feels safe to keep money in a savings account paying nothing, over decades it can't possibly keep up with inflation. People may risk losing money with mutual funds, but they are guaranteed to lose to inflation. (As far as I can tell, the system is designed that way on purpose, but that's another topic.)

 

So if your kids are in high school, sure, keep the money in a CD or something. If they are very young, the only thing you can be assured of is that tuition is going to continue up and investing is the only possibility of keeping up. (Unless you get a raise or start a business that succeeds.)

 

That said, having 70% of tuition saved is a good start and better than many parents are doing, even those with good incomes. When the time comes, you're unlikely to wish you had saved less, so good job getting started and keep it up!

 

Yes, good advice.  Investing is a the only way to go!  My portfolio is killing the market at the moment.

 

[Shellydon]

We opted to go with the pay for current rates in full and they will apply in the future.  We paid for all 8 years worth of college 5 years ago.  So, each kid will get two years paid in full, or if someone decides not to go to school, other kids will have more.  Investments can cover some more of it, and I will expect them to get grants, scholarships and work as well.  We live near many universities, so if they live at home for a time, the money will go much farther.

[bettyandbob]

Actually our cc is an excellent low cost start for engineering. They had a transfer agreement with the big, nationally ranked engineering school in the 1970s. I don't know when they started having agreements. That's as early as I remember. It was common for some of brother's classmates to take higher level math classes in summer there. They have some engineering classes too.

 

Yes, it does depend where you live.