Did you folks not do ANY saving?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Notice how this post was not answered, nor are any of the other people complaining about "the lucky poors who get financial aid".

I have $300k saved across 529 and other nonretirement assets. Based on the 5% formula, this would increase my EFC by $15k per year, so I would be paying $60k more than if I hadn't saved.

Thanks for answering, and congrats for being a diligent and responsible parent.

I do not know if you were one of the previous posters, but are you saying you’d be better off with $60K more of financial aid and no savings to pay for college? Probably not, right?

The implication from some people is that it’s a zero sum game and if they hadn’t saved they would be getting a free ride. It’s not so. You’d be way worse off, to the point of college being impossible.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Notice how this post was not answered, nor are any of the other people complaining about "the lucky poors who get financial aid".

I have $300k saved across 529 and other nonretirement assets. Based on the 5% formula, this would increase my EFC by $15k per year, so I would be paying $60k more than if I hadn't saved.

Thanks for answering, and congrats for being a diligent and responsible parent.

I do not know if you were one of the previous posters, but are you saying you’d be better off with $60K more of financial aid and no savings to pay for college? Probably not, right?

The implication from some people is that it’s a zero sum game and if they hadn’t saved they would be getting a free ride. It’s not so. You’d be way worse off, to the point of college being impossible.

+1 And, if you have an income that lets you save $300K for college your EFC is going to be really high anyway so regardless, you aren't getting need-based aid. Income is the biggest factor in EFC.

[Anonymous]

We have saved enough for in-state tuition. It’s the jump between in-state Maryland and private times two children. That’s 100K to cover 4 years at UMD for one child versus 280K to cover 4 years of private room and board. Now we would be talking over half a million dollars ...on top of living in a high cost area. We are good savers, but not great investors and to have a spare 500,000 we would have needed a good investment like if I had held onto my townhouse (who knew it would double in price after I sold it) or invested in Apple way back when.

So for me it’s the reality of in-state flag ship becoming even more competitive and hearing of good students getting Spring admissions. It’s also like the Ford cars of the 1900’s “look, you can have any color car as long as it’s black”. To have choices other than in-state, my dd would need merit and/or out of state public college.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Just because you disagree doesn't mean it's incoherent.

I am not opposed to people getting aid, necessarily. But, why am I supposed to save money and forego other things to do so and foot a full pay tuition for the same education other peoples' kids are getting at reduced costs? We do not live a lavish life. We are civil servants and have one modest home. 1 car 11 years old; the other bought used. No vacation home or other big luxuries. We have to make choices as to house repairs and stagger them to afford them. We are not rich. We have no family support, trust funds, etc. None of our parents went to college and we have worked our asses off. Yet, I have to foot a tuition bill like I am well off?

We have lived responsibly, within our means. And we will be punished for that. Our DC's college is going to cost tens of thousands of dollars a year b/c we won't get one cent. Yes, I feel College is too expensive. But, I also feel that the payment options punish those who save for it. We gave up many things to save that money, not just "luxuries."

I don't really care what you think of my complaints. So you can take your snark somwehere else.

How much do you have saved, and how much less would you be paying if you did not have that savings?

Notice how this post was not answered, nor are any of the other people complaining about "the lucky poors who get financial aid".

Hey jerk, it wasn't answered b/c I have not been online. And you're cute references to the lucky poors who get aid is not a correct characterization of my position. But, i see you're too busy trying to have a clever response than to actually gauge what my position is.

As for what I've saved, it's none of your business. But as of right now, it's not even enough to cover 4 years instate. And we've saved aggressively with the money we could spare.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Just because you disagree doesn't mean it's incoherent.

I am not opposed to people getting aid, necessarily. But, why am I supposed to save money and forego other things to do so and foot a full pay tuition for the same education other peoples' kids are getting at reduced costs? We do not live a lavish life. We are civil servants and have one modest home. 1 car 11 years old; the other bought used. No vacation home or other big luxuries. We have to make choices as to house repairs and stagger them to afford them. We are not rich. We have no family support, trust funds, etc. None of our parents went to college and we have worked our asses off. Yet, I have to foot a tuition bill like I am well off?

We have lived responsibly, within our means. And we will be punished for that. Our DC's college is going to cost tens of thousands of dollars a year b/c we won't get one cent. Yes, I feel College is too expensive. But, I also feel that the payment options punish those who save for it. We gave up many things to save that money, not just "luxuries."

I don't really care what you think of my complaints. So you can take your snark somwehere else.

How much do you have saved, and how much less would you be paying if you did not have that savings?

Notice how this post was not answered, nor are any of the other people complaining about "the lucky poors who get financial aid".

Hey jerk, it wasn't answered b/c I have not been online. And you're cute references to the lucky poors who get aid is not a correct characterization of my position. But, i see you're too busy trying to have a clever response than to actually gauge what my position is.

I think your post, and the phrases "I am not opposed to people getting aid, necessarily" and "the same education other peoples' kids are getting at reduced costs" and "we will be punished" speak for themselves.

And if my post offended you, fine. Yours did me.

Anonymous wrote:
As for what I've saved, it's none of your business. But as of right now, it's not even enough to cover 4 years instate. And we've saved aggressively with the money we could spare.

Yeah, it's none of my business, except for the parts you volunteered in an open forum.

I agree that college is too expensive, and I have tremendous sympathy for those who cannot afford what they want for their kids -- including you. What I don't like is the bitter idea that it is unaffordable for you because the lucky poor are paying less. That it not only offensive, it is not supported by the facts and numbers.

[Anonymous]

Anonymous wrote:I”m seeing a lot of threads and responses within threads. Lots of people seeking information about private schools with tons of merit aid, “full ride” schools, people frustrated about the unfair advantage of ED because you want know the full amount of merit aid that might be available (and kudos to the patient people on that thread that keep trying to explain how the Net Price Calculator works).

The conclusion I’m getting from this is... there’s a whole bunch of UMC people here who didn’t save for kids’ college.
What the @#$%!

To be 100% clear, I’m not talking about lower income families, though these posters starting the posts above almost seem to resent all the aid, Pell grants, etc. these folks will be getting.

When my kids were 5 (as soon as we didn’t have to pay for preschool anymore, just public school before and aftercare) we started investing in 529s. We’ve been putting away money every month since then.
Back then, after doing my research, my assumptions were
1. We will not qualify for financial aid (unless we are going to some really expensive private, but then we are still paying $$$)
2. While my kids are smart, I should not count on merit aid of any kind

As we get close to college age, we will have enough for them to attend an in-state school, and we are on track to take out very little—if any—in loans. Kids know they are welcome to apply to private schools, and if after all is said and done, it’s a comparable price tag, we can do that, but neither we nor our kids are going to rack up big undergraduate debt.

Yes, college costs are out of control, and there’s lots of frustrating aspects to the system, but this stuff didn’t crop up yesterday. Why didn’t you plan? Why didn’t you save?

This.

[Anonymous]

Anonymous wrote:We have saved enough for in-state tuition. It’s the jump between in-state Maryland and private times two children. That’s 100K to cover 4 years at UMD for one child versus 280K to cover 4 years of private room and board. Now we would be talking over half a million dollars ...on top of living in a high cost area. We are good savers, but not great investors and to have a spare 500,000 we would have needed a good investment like if I had held onto my townhouse (who knew it would double in price after I sold it) or invested in Apple way back when.

So for me it’s the reality of in-state flag ship becoming even more competitive and hearing of good students getting Spring admissions. It’s also like the Ford cars of the 1900’s “look, you can have any color car as long as it’s black”. To have choices other than in-state, my dd would need merit and/or out of state public college.

+ 1. Most of the UMC people from the DMV area (a high COL area) who sound frustrated are in this situation.

[Anonymous]

Anonymous wrote:We make about $225k. Combined with what we're willing to take out of cash flow, we saved enough for our kids to go to a state school or a private school with merit aid (so max of about $50K/year). Yeah we could've gone 20 years without vacationing or not updated our 80s kitchen or driven 2002 Honda Accords, and then we could've afforded to send our kid to any private school they wanted, but...meh. We (collective "we") put waaaay too much emphasis on "the dream school" and "THE IVIES!!!!!11!!!" as if they're somehow going to drastically alter the trajectory of your kid's life or provide some sort of incomparable experience that could never possibly offered elsewhere and I just SMH. Especially when we know that outcomes-wise, that extra ~100K is very unlikely to ever "pay off." I have no desire to deprive ourselves for 20+ years.

I totally agree with this post! Paying more than 15% of your income or (15% of your net worth) toward an undergraduate degree for 1 child is ridiculous.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have saved enough for in-state tuition. It’s the jump between in-state Maryland and private times two children. That’s 100K to cover 4 years at UMD for one child versus 280K to cover 4 years of private room and board. Now we would be talking over half a million dollars ...on top of living in a high cost area. We are good savers, but not great investors and to have a spare 500,000 we would have needed a good investment like if I had held onto my townhouse (who knew it would double in price after I sold it) or invested in Apple way back when.

So for me it’s the reality of in-state flag ship becoming even more competitive and hearing of good students getting Spring admissions. It’s also like the Ford cars of the 1900’s “look, you can have any color car as long as it’s black”. To have choices other than in-state, my dd would need merit and/or out of state public college.

+ 1. Most of the UMC people from the DMV area (a high COL area) who sound frustrated are in this situation.

+2 In Va, the cost of attending the top schools (UVA & W&M) are 33-40k/yr which is a lot more than national averages you hear about in-state tuition etc. And your kids have to be in the top 5% of SATs and top 10% of their class and take a large amount of AP/IB courses to get in. The combined entering class of both these institutions of in-state VA students is just above 6000 kids and they need to get representation around the state. Not every high-achieving MC/UMC NOVA kid can go to their top in-state school(s).The picture is similar in MD. Parents whose kids are not a sure thing for those, start looking to less competitive out of state flagships, private schools. They also consider JMU, GMU, VT, Towson, UMBC etc. but those are often far from what they pictured for their students who have 4.0+ weighted GPAs and 1400+ SATs and lots of talents--but just miss the cut-off for their state flagship in the most competitive states. Conventional wisdom has been telling parents the "smart" thing to do is save for in-state public tuition. So both selectivity and the rapid rise of costs has left parents scrambling to find options for their kids. People with 200k+ salaries can often cashflow the difference, but those between 100-200k seem to have the most struggle.

[Anonymous]

We just save in 529 enough to get state deductions. Rest goes in general brokerage account. One can always borrow for college, but not for retirement or some other unforeseen events.
Plan is to cashflow the college, if that's not possible then income has dropped and there might be some FA or what not, perhaps kids can study in Europe, etc. 529 are overrated for regular umc types with medium 6 figure incomes, I like to focus on financial independence instead.

[Anonymous]

UVA and William and Mary are EXPENSIVE. We moved to Florida before our kids started high school and thank goodness! Tuition at UF is only $6K/year and FSU is $5,600. Plus strong students can take advantage of Bright Futures and get free or reduced tuition.

[Anonymous]

I only make 57k before taxes. Single parent. No way can I contribute to a 529

[Anonymous]

Anonymous wrote:UVA and William and Mary are EXPENSIVE. We moved to Florida before our kids started high school and thank goodness! Tuition at UF is only $6K/year and FSU is $5,600. Plus strong students can take advantage of Bright Futures and get free or reduced tuition.

And they don't have income tax in FL, right? The state is clearly contributing more. Makes you wonder if Virginia could funnel some more money into higher education.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We make about $225k. Combined with what we're willing to take out of cash flow, we saved enough for our kids to go to a state school or a private school with merit aid (so max of about $50K/year). Yeah we could've gone 20 years without vacationing or not updated our 80s kitchen or driven 2002 Honda Accords, and then we could've afforded to send our kid to any private school they wanted, but...meh. We (collective "we") put waaaay too much emphasis on "the dream school" and "THE IVIES!!!!!11!!!" as if they're somehow going to drastically alter the trajectory of your kid's life or provide some sort of incomparable experience that could never possibly offered elsewhere and I just SMH. Especially when we know that outcomes-wise, that extra ~100K is very unlikely to ever "pay off." I have no desire to deprive ourselves for 20+ years.

I totally agree with this post! Paying more than 15% of your income or (15% of your net worth) toward an undergraduate degree for 1 child is ridiculous.

OK, income and net worth should diverge substantially by the time a kid is in college.

I do agree that saving enough for a state school and then letting merit aid and loans cover anything a kid wants beyond that is an appropriate way to go and a path that shouldn't be dismissed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Aren't most people still working when their kids are in college? I'm saving for both my kids, but I'm also assuming that large amounts of my paycheck during their college years will be going towards paying their college expenses. Why are people thinking they need to have saved the total amount by the time their kids start college?

+1. By the time my kids go to college, we're projecting that'll we have saved about half about their college expenses. Which makes it easier to pay the rest from our salaries. If college is $74k a year, half of that is $37k, which is basically what we paid during the daycare years with no savings at all, and when we both earned so much less than we do now.

I opted to be a SAHM. I only recently began working. Not sure how we will make it since we are by definition a donut hole family. Seems unfair that our current income is counted against us. Considering staying home, again, until kids are out of college. May make more sense, tbh. Then we can get FA.

Holy crap. Read this again, PP.

You are complaining that it's unfair that your current income is counted against you, when you removed yourself from the workforce for years. Moreover, you're considering doing it again, so you can get aid?

You aren't ashamed of yourself, typing this out?

Since you went without your income for so long, and apparently comfortable doing so again, you should be able to direct that income entirely to college. That'll help.

Again, giving low income kids a hand - great. Giving "aid" to families who decided to not do all they can to pay for college themselves? No thanks.

+100 PP the idea that you think your kids should get the same aid as kids that are going to college from impoverished homes because you didn't want to work for most of their childhood is deeply gross.

When I was a SAHM, we lived within our means. We didn’t take fancy vacas and bought our cars in cash. I made the choice to SAHM, and don’t understand why my kids our penalized now that I work. Mind you I work two part time jobs because it’s not as easy as one thinks to get a FT job after choosing to SAH. But you think I should feel shame?! Why? I raised my kids and took a financial hit to do so. I will do so again so that my kids can get FA. Our country is messed up when SAHMs are penalized for working a few years before college.

Why should we subsidize SAHMs?

And no, you didn't live within your means. If you had, you'd have saved for college. But, you ignored that, and now either don't think it's fair that money you earn after returning to work should be used to pay for college, or just want others to pick up the tab.

Yes, you should be ashamed.

How are you subsidizing a family where a parent doesn't work. There are lots of reasons not to work and it is about total family income and how its spend. You can have a two income high earning family who lives above their means and doesn't save anything and a family with a SAHP who saves and lives under their means.