Sorry DCUM middle class, your kids are screwed for college

[Anonymous]

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Anonymous wrote:FAFSA previously benefitted those who went on extravagant vacations and penalized those who scrimped to save. Not sure how new FAFSA works.

My friend ended up quitting her $70k job 5 years before her kids went into college - they did the math with a financial planner and if all 3 of her kids were going to college determined they would almost all get a free ride without her salary and they could rely on her husbands only. She picked up off the books babysitting work and now with 3 kids in college figure they are ahead at least $200k by her NOT working.

Crazy…

What colleges are we talking about? I mean, literally, 97% of colleges won't give you a free ride at that income. I assume the vast majority of kids even where your friend lives end up going to a regional state college where there is little aid for anyone.

I guess you have to be lucky enough to live in the middle of nowhere, earn in probably the top 3% of incomes for middle of nowhere, and have kids that can get accepted to Top 20 schools.

I don’t even get the math.

You give up $70k of income, for 3 kids in college that’s 12 years so -$840k.

Ignore the opportunity costs of lost investment income and taxes for now to keep it simple.

Assume the kids go to 80k/year T50 for 12 college-years that’s $960,000 in tuition.

At $120k annual income it’s no free ride maybe you get the net cost down by half to 40k. So $40k per year x 12 is $480,000 in savings.

Golly fellas which number is larger, 840 or 480.

As the kids say, congrats you played yourself.

With 70k salary you only take home 42k. It usually doesn’t take 12 years for 3 kids to finish college. Top colleges ask you to pay no more than 20k a year if household income is 120k AGI 100k. Lastly don’t forget the value of all your free time, be it time spent with your family or $ from a side hustle.

Hold on I can barely add here.

How many years of college do you pay for with three kids again?

Kid 1- 4 years of tuition
Kid 2- 4 years of tuition
Kid 3- 4 years of tuition

Those years can overlap of course but it’s always going to be 12 years worth of tuition.

Correct - always 12 years of college tuition but not 12 years of forgone salary - that can be a big difference. PP noted it was only 7 years forgone salary.

[Anonymous]

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Anonymous wrote:Screwed because you're obsessed with colleges where it's statistically unlikely to be accepted?

Really, it's a self-imposed situation. If you just look beyond the few dozen schools that are like that and get excited about the hundreds (thousands?) of others, this process isn't nearly as stressful.

Right, I realize my kids don't have a shot at top 25 schools. But, there are plenty of schools they can go to that will get them a good education and put them on a nice path in life.

The only people freaking out are those who have totally gone down the "prestige" rabbit hole.

Well, we want the best for our kids. You don't, and that's fine, too.

See, you're what I'm talking about. You're so blinkered and parochial, you think there's only one potential path that will lead to success and happiness (though I doubt you care much if your kids are happy).

I'm realistic about where my kids are likely to get in. I don't see a need to drive them and me crazy during their high school years reaching for a nearly unobtainable brass ring.

You know they'll be rejected.

Yes. As your kids will almost certainly be. Even if your kid devotes his entire high school life to being the "perfect" candidate, it'll essentially come down to the admissions department doing a random drawing out of a hat.

Does that sound like a rational plan to you? Having your kid kill themselves for a 10% (or less) chance of getting into a school?

Kids are working themselves to mental breakdowns only to get into a good state flagship. But that’s what it takes now. It’s all insane.

What’s wrong with going to a good state flagship? As long as they have the majors you want.

Nothing. Do you think it should take a 4.0 and and a 1400 to get in though? I don’t.

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