Best strategy to pay college for 3 kids

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, I posted about what we did in similar situation, or so I thought, but we know nothing about your assets. You really have to consider those to know if you will be able to pay back loans or make profit on rental, etc.

our assets
300k primary, 250k on rental, 900k retirement, 150k 529
we have normal expenses an we do help parents both side, we have old van and old highlander that is all our asset pretty much.

our rental cannot go up more than this but we can pay monthly (if we take out loan)

That’s not a lot to work with. Can you get someone else to pick up the expenses for the parents and get some extra money that way? Your take home should be like $185k, which is about $15,500 per month. Your current college expenses are about $5,500 per month ($78k less student loans) leaving you with $10k to pay your mortgage and household expenses. Unless your mortgage is huge or you are spending a ton on parents, it seems like you could so some belt tightening and make this work without loans. It won’t be pretty for the next two years while you have three in college, but it is possible and it will get better after that.

Also, no reason your kids can’t work off campus or non work study jobs. It changes the college experience, but your kids really don’t have the luxury of unlimited funds to pay for college

Both are actively looking DC1 campus is hard to secure a job but DC2 can do it. My sisters can help a lot and can explain situation. I think we might have to dial down a little be with retirement contribution and increase take home. The hardest year will be 25/26 as we have the 529 for next year.

[Anonymous]

Anonymous wrote:You should run the net price calculators for third kid. My family has a higher net income then you, but we got significant aid from private schools for three kids in college at the same time, so that private schools were cheaper for the year than publics.

Also looking into the effect of early retirement for your husband. I found that working cost me money (many colleges is free below a certain income level).

Yes I've been planning with NPC, for example Harvey Mudd qualifies as for higher aid than CMU. We will see as the financial package comes in the different options. Not looking into retirement but worth considering it.

[Anonymous]

Anonymous wrote:How much equity do you have in the rental? Why not sell it?

about 250k, since we are close to retirement age the mortgage will be easier to manage if we move back to the rental than primary but selling might be an option will be subject to capital gains tax.

[Anonymous]

Our kids earned dual enrollment and AP credits in HS and they earned merit scholarships at their in state schools which has cut costs dramatically.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is the 265 from both of you working? And DH is 63? I think the poster who suggested draining the 529 is wise, bc reapplying when all 3 are in college and you have no 529 savings left may up the pot of aid?

When is DH planning to retire?

Are there options to stop financially helping parents to the detriment of your kids’ educational options? (DCUM controversial take) are you helping them in a way where the money comes back to you (I.e paying for a house you’ll inherit?)

Yes and yes. We could take out the money from 529 at least for DC1 and DC2.
DH is not planning to retire soon not at least this college cost is over. We don't have any inheritance and there is no option to stop supporting parents as they don't have any income but we share cost with our siblings.

How can your parents have NO income. Don’t they get social security at least? Can you cut their expenses as well, maybe by moving them in with you since you will have an empty house for a large part of the year?

Your college costs are really not much more than some families pay for daycare in the DMV and that happens with lower salaries and no loans.

No income because they have not worked here they are not citizens will consider all options cutting expenses.

[Anonymous]

Anonymous wrote:This will probably be controversial but may be an idea if you're stuck. If Kid #1 has graduated by the time Kid # 3 enters, ask Kid #1 to pitch in... the huge benefit they got for you isn't available to their sib... why can't they put in $10K/ year to even things out (if they are employed).

I think that is great, DC1 want to pursue medical school not counting on it but told her we help for underhand and she can take a loan. But also advised her to major in something she can find a job in case she decided not to continue med school so might be possibility.

[Anonymous]

Anonymous wrote:Our kids earned dual enrollment and AP credits in HS and they earned merit scholarships at their in state schools which has cut costs dramatically.

Good to know. DC2 got credits but no merit from state school, DC3 is waiting to hear from state school but got merit from OOS schools that brings cost to state level in case she chose to go OOS.

[Anonymous]

Sell one kid to pay for other two.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:IMO you can't afford private...at all.

can your kids do co-ops? they work for a semester and make good money. also a great way to get a foot in the door for a job after graduation.

I'm not sure if the schools they are attending have co-ops but will look into it.

If you are not getting significant FA, your kids need to step back and be at state schools that give them merit. You cannot afford to take loans really, too close to retirement. Your kids need to work every moment they can (Summer, xmas break, spring break, and PT during the year) and find a college that costs you less than $25K/year per kid.

Unless it's a college close enough to OP's house for the kids to commute, I don't see how that's possible.

-not OP

Towson is 27K/year for instate and that's with R&B. Move off campus and you can bring it down to under $25K. Then the student can work their asses off on all breaks, work PT during the year and bring in $12-15K (with what min wage is that is possible to do). So err on side of caution and say kid earns $12 K. You have $15K left. Take the $5-5.5K in fed loans. Now mom and dad need to help with $10K. That's a much easier task. Mom and dad could choose to do that by getting themselves a part time job.

JMU instate tuition is under $14K. So similar to Towson.

Key is picking one near 25-30K. If your kid is high stats, they should also get some merit at these schools (CNU, Mary Washington, etc.)

It's not impossible to find schools at the $25-28K range.

Ok, but the pp (you?) said LESS than $25k, not in the 25-28 range.
Does OP live close enough to Towson or JMU for the kids to commute?

Close enough. Point is there are many good options that can be done with a kid working and minimal debt, and even less debt if parents can pay 5-10K/year. So whether it's 25 or 28K, it can be affordable for most "donut hole" families. You just need to have your kid actually get a job and work 40+ hour weeks. Most of us did that when in college.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:ROTC scholarships! We have four kids and three are on full ride scholarships with monthly stipends. All are engineering majors and will be doing some tech or flying related job when they commission. They are getting wonderful College educations and serving their country. If your children are fit and smart, maybe consider the service route?

Just keep in mind that when they are serving, the military will decide where they serve. I remember a guy I went to college with found out his first duty station would be in South Korea, which he was not happy about.

If your kid gets a duty station far away, they won't be able to come "home" for everything (holidays, birthdays, etc.)

Why would anyone NOT happy about that assignment? I'd love it.

I'm not exactly sure why he didn't want it. But some of the overseas duty stations can be tough on young single service members. A lot of things on base are geared towards the families with children, and off base a lot of the locals don't like you. Most new officers won't make enough money to travel every weekend (and depending on the situation could be restricted from traveling too far without express permission)

I was stationed overseas when I was single and loved it. Junior officers make plenty of money to travel. Extravagant travel? No. Travel? Absolutely!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:ROTC scholarships! We have four kids and three are on full ride scholarships with monthly stipends. All are engineering majors and will be doing some tech or flying related job when they commission. They are getting wonderful College educations and serving their country. If your children are fit and smart, maybe consider the service route?

Just keep in mind that when they are serving, the military will decide where they serve. I remember a guy I went to college with found out his first duty station would be in South Korea, which he was not happy about.

If your kid gets a duty station far away, they won't be able to come "home" for everything (holidays, birthdays, etc.)

Why would anyone NOT happy about that assignment? I'd love it.

I'm not exactly sure why he didn't want it. But some of the overseas duty stations can be tough on young single service members. A lot of things on base are geared towards the families with children, and off base a lot of the locals don't like you. Most new officers won't make enough money to travel every weekend (and depending on the situation could be restricted from traveling too far without express permission)

I was stationed overseas when I was single and loved it. Junior officers make plenty of money to travel. Extravagant travel? No. Travel? Absolutely!!

Korea? Okinawa? Guam?
Very different experience than Germany or Italy.

[Anonymous]

Can your daughter do OF?