10-Year Horizon

[Anonymous]

We have 10 years until our first child goes to college. We currently have $60k saved in a 529, with the goal to be able to cover tuition, room and board at a public university. The wrinkle in our plan is that we are DC residents, so do not have direct “in-state” access to a public university system like residents of MD and VA.

So DC resident parents with children in public universities, how did you navigate the college tuition? Any insights for changes on the horizon and what we should be aware of for a child entering college in 2033?

[Anonymous]

DC residents are special. They pay in state tuition wherever their DC goes if it is a public school.

[Anonymous]

Anonymous wrote:DC residents are special. They pay in state tuition wherever their DC goes if it is a public school.

No they don't. All they have is DC-TAG, which currently pays upto 10K/year towards tuition for a public university/college and HBCU/MSI. The amount has been fixed for several years and can be taken away by Congress should they choose. Eleanor Holmes Norton (DC's "rep") has been trying to raise this amount for several years with little success. A well-funded 529 + cash flow + DC-TAG is all we DC residents have.

[Anonymous]

Anonymous wrote:DC residents are special. They pay in state tuition wherever their DC goes if it is a public school.

In addition to that not being true, DC residents also aren't eligible for scholarships that in state residents can apply for, like the full ride scholarship to UMD for top Maryland residents.

[Anonymous]

DCTAG can help. Not very familiar with the program though.

[Anonymous]

Anonymous wrote:We have 10 years until our first child goes to college. We currently have $60k saved in a 529, with the goal to be able to cover tuition, room and board at a public university. The wrinkle in our plan is that we are DC residents, so do not have direct “in-state” access to a public university system like residents of MD and VA.

So DC resident parents with children in public universities, how did you navigate the college tuition? Any insights for changes on the horizon and what we should be aware of for a child entering college in 2033?

The first thing you should do is disabuse yourself of any notion that your DC should go to any public university. You will benefit from a demographic cliff and better merit aid at privates than now exists.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have 10 years until our first child goes to college. We currently have $60k saved in a 529, with the goal to be able to cover tuition, room and board at a public university. The wrinkle in our plan is that we are DC residents, so do not have direct “in-state” access to a public university system like residents of MD and VA.

So DC resident parents with children in public universities, how did you navigate the college tuition? Any insights for changes on the horizon and what we should be aware of for a child entering college in 2033?

The first thing you should do is disabuse yourself of any notion that your DC should go to any public university. You will benefit from a demographic cliff and better merit aid at privates than now exists.

OP here. What demographic cliff? Please explain. Thank you.

[Anonymous]

People say UDC is rising

[Anonymous]

Less kids beginning with Class of 2027.

[Anonymous]

Demographic, or enrollment, cliff: https://www.vox.com/platform/amp/the-highlight/23428166/college-enrollment-population-education-crash

[Anonymous]

DC-TAG covers $10,000 to any public university per year, though it was supposed to bump to $15,000 with the last Biden bill, but it hasn't reflected yet for next year.

DC-TAG will also cover up to $2,500 for local schools like Georgetown, AU or GWU.


The original intent was to be the delta between in state and out of state tuition, but the tuition costs have escalated so dramatically that it wasn't able to keep up.

[Anonymous]

Anonymous wrote:DC-TAG covers $10,000 to any public university per year, though it was supposed to bump to $15,000 with the last Biden bill, but it hasn't reflected yet for next year.

DC-TAG will also cover up to $2,500 for local schools like Georgetown, AU or GWU.


The original intent was to be the delta between in state and out of state tuition, but the tuition costs have escalated so dramatically that it wasn't able to keep up.

I do not believe it covers any privates like that anymore. Only HBCUs. But I could be wrong?

[Anonymous]

We are DC residents and have two kids in public schools. We only chose publics that offered great merit aid. Most publics do not, therefore the 10K in DC TAG is not that advantageous. So do your homework and look at schools that offer good merit aid, which can change between now and 10 years from now but still good to take a look now because you can glean some trends. In terms of whether your current nest egg is enough? I can only say keep saving! Many families are in the "make too much, but not enough" scenario, so rarely qualify for federal financial aid (free money). But some schools will offer their own aid packages even if you get rejected from the federal aid. There is no easy answer. Don't stop saving, save what you can, and hope your child does well enough in school, has enough extracurricular activities, and definitely applies to privates that offer merit aid.

[Anonymous]

Honestly I would move to VA

[Anonymous]

The 10K DC Tag is a big nothing burger.

Here’s one example: For a DC resident, even with a 10k discount UVA oos tuition alone is still 47k. UVA does not offer merit aid to students without need (only 4% of those students only get it). Meanwhile, Grinnell (arguably a better school), gives an average of 19k to 3/4 of students with no financial need. In other words, it’s tuition is most likely going to be at least 5k cheaper than UVA — even with DC Tag.

What is true now will be way more true in 10 years. Public universities will if anything be a worse deal than now due to the vagaries of state budgets. Meanwhile, the private schools currently offering merit aid will be offering even more merit aid. And most of the private schools not now offering merit will do so.

If you are going to stay in DC for 10 years, my advice is to forget thinking public altogether. That is what most residents of DC who are in the know do. Or, if they are still looking public, they look at publics that give a ton of merit aid — so much merit aid that the lame 10k DC Tag barely enters into the calculation.