Paying for college costs
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Anonymous
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Saving in 529s with a goal of $55k/year per child for college. Cash flow and savings for the rest.
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Anonymous
| Most parents scrape money together from all corners - 529, cashflow, grandparents, teen jobs, small scholarships, work study, and LOANS. Whatever you hear on this forum is IDEAL and I would follow everyone’s advice, but it is not typical. |
Anonymous
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We saved about $40,000 in a 529 for our 2 kids.
Student #1 went to state flagship with small scholarship. Year one, he lived at home due to COVID and did online classes, so tuition+fees were just about $7000 that year. Cash flowed. Year 2, lived on campus: $24,000 for the year. He took a $5,500 loan, we paid $10,500 from the 529, and parents paid $8,000 from cash flow. Year 3, lived on campus but now no more scholarship + extra tuition costs. $30,000 total. He took a $6,500 loan. We paid $12,500 from 529. We are paying $11,000 cash flow - about $1000 each month. Year 4, it will be another $30,000. He'll take a $7500 loan. We have about $15,000 left in the 529 ( depends on state of the market). We'll cash flow or pay from savings the rest, because his younger sibling will also be in college the same year. |
Anonymous
| Savings plus cash flow. |
Anonymous
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We've saved for it. 529's for all 3 kids and cash flow the rest if that's not enough.
DD#2 has applied to mainly private or OOS schools. DD#1 is a bargain in state. She will probably have $ left over in her 529 to flow down to #2 and #3. |
Anonymous
Ah, no. Art is taxed at 39%. Then you add on Sotheby’s’ 30 to 35% fee to find a seller. Just pay your taxes and take pride in yourself, man. |
Anonymous
| What is paying from "cash flow"? |
Anonymous
That you are able to pay from your day-to-day income, not drawing from savings. |
Anonymous
From current income, as opposed to savings |
Anonymous
| We have 3 years of tuition at a VA public college prepaid through a Va 529 account. The 4th year will be paid for by a combo of savings, summer jobs, and maybe loans. As parents, we think it’s good for the students to have some “skin in the game” vs a totally free ride - but we don’t want them to end up with a lot of debt either. Enough that they are motivated to make smart decisions. |
Anonymous
| Saving $1000/kid a month in a 529 for years, and continuing to do so throughout college. Plus, each set of grandparents contributes $10k per kid per year. One kid at a SLAC with $25k merit. One at WM. WM kid will have enough left over for a Masters. |
Anonymous
| Have been contributing $20k/yr to 529s for my 4 kids for 10 years. Oldest is starting college next year. We have almost enough for 4yrs in state tuition. She will have to work summers to fund personal expenses and maybe books and such |
Anonymous
| My dd is at an out of state public university (but cost is slightly less than what an in state school would've cost). It is paid for by a combination academic scholarship, college fund, student loans and cash. She is also working 2 jobs. Tuition is being paid for by her scholarship as well as her college fund and supplemented by Student Loans. We don't qualify for subsidized loans so we are paying the interest on those quarterly so that she doesn't accumulate debt on interest. I would never, ever take out a Parent Plus loan. We are paying for her rent in cash. She pays for her books and living expenses with her jobs. It is a bit of a tough road from time to time but I do think it important that she understands the importance of her education and feels "ownership" in providing for it as an adult...We anticipate the debt she graduates with to be less than $15K. |
Anonymous
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529s
2 x Kids $500 x kid per month since birth |
Anonymous
| Grandparents |