Future college costs - what am I missing?

[Anonymous]

FWIW, my kids are in college now. When they were little we started contributing to the 529 based on the current cost of VA public schools. I can't recall the exact amount. Stock market growth helped it keep up with the growing tuition and by the time they were in HS we stopped saving in the 529 and instead put money in our brokerage account because we already had what we needed to cover in-state college and I didn't want to oversave. DC1 graduates in May from Virginia Tech and has $14k left in his 529. And, we used some of that brokerage account savings to help him buy a car. DC2 goes to a private school with a scholarship that matches the price of in-state publics.

It sounds like you are doing great. Don't get too freaked out by headlines about college price growth or the small segment of schools with ridiculous price tags. The average "net price" for college has actually declined after adjusting for inflation:

https://research.collegeboard.org/trends/college-pricing/highlights

* After adjusting for inflation, the average net tuition and fees paid by first-time full-time in-state students enrolled in public four-year institutions peaked in 2012-13 at $4,340 and declined to an estimated $2,480 in 2024-25.

* After adjusting for inflation, the average net tuition and fees paid by first-time full-time students enrolled in private nonprofit four-year institutions declined from $19,330 in 2006-07 to an estimated $16,510 in 2024-25.

[Anonymous]

It’s depressing but at least you did the math now so you can adjust. I did the same math 11 years ago, when I was pregnant with my first, and back then it was about $1545/month from his birth to age 22 to pay for four years at a private college. I did save this amount monthly until he was 6, and started decreasing it when I realized we would probably cash flow.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, my child is in college NOW and all I have in her 529 is about $40,000.

We are managing. She's borrowing $5000 per year, and earning another $5000 from her summer job that she contributes. That's $10,000.

I take $10,000 from the 529.

And I cash flow $10,000 (about $1,000 per month).

That's $30,000 for the year which covers her out of state tuition, room and board, more or less. (she has a merit scholarship bringing cost of attendance close to in-state.)

So I cannot comprehend how you won't be in a MUCH better position if you already have $30K in your kid's 529 AND you are contributing $7200 annually?

Congrats to you! You have figured out how to "make college affordable". Kid works, kid takes fed loans (it's not that much to pay off). But key is you find a school that is only $30K, which outside the T40 schools is not that difficult to do. Trust me when I say your kid will be happier with minimal debt than at a "higher ranked U"

Thanks ... my older kid managed to get need-based financial aid from several T40 schools with good endowments, too. All in all our expected contribution was about $30,000-$40,000 at each school.

[Anonymous]

The calculation seems off to me.

I started with $10K for my kid 21 years ago, contributed $400 a month all that time, and was able to fund one kid just finishing his fourth year in-state, and should have just enough to cover the second kid going out of state over the next four years.

[Anonymous]

College costs are insane. It was a factor for us moving to Florida to take advantage of free or at least cheap tuition for our three kids.

We tell our kids that we'll pay for in-state schools. If they want a different school, then we'll pay part and they'll need to take out loans for the rest. We're also very clear about the pitfalls of graduating with debt.

Oldest DC is in 11th grade and looking at realistic merit scholarships vs. state schools. Right now, DC is really leaning towards a few top state schools if they get in.

OP, VA has amazing state schools. Some of the best in the country, and lots to choose from. Stick to that unless they get significant scholarships somewhere else.

[Anonymous]

What should someone budget for today to cover the 4 year cost of tuition/fees and room/board for a kid entering college this fall? For in state and for out of state options? We have twins who are 6 years away and I really need to make a plan!

[Anonymous]

We are full pay in state. Our costs are $26k per year for everything including sports costs. You should be able to do six years at the amount you’re saving.

IME, calculators, whether they be retirement or college, always overstate your needs.

Last thing. Your income will increase and your expenses may be less. For us, our mortgage is paid off so that gives us all of the college Money we need even without savings.

[Anonymous]

What is your HHI? Your salary now and your salary or salaries and savings in 18 years will grow.

And morbidly, if grandparents were in a position to give 30K at birth, will an inheritance be in play in 18 years?

[Anonymous]

Anonymous wrote:What should someone budget for today to cover the 4 year cost of tuition/fees and room/board for a kid entering college this fall? For in state and for out of state options? We have twins who are 6 years away and I really need to make a plan!

You can get the costs for the specific schools you are considering just by googling. It’s all online.

[Anonymous]

Are you putting in 21 years of savings or 18?
You keep saving through the 3rd year of college. If that doesn't get you all the way there, you can simply increase the amount you save by $100 a month each time one of you gets a raise.

[Anonymous]

My kids are in 10th, 7th, and 4th. We are saving in the 529s but I'm planning to cash flow what we can't cover with the 529, and would consider loans if we had to.

We also live in VA, and I'm not really planning to pay more than in state tuition (though this could mean in state VA school, or it could mean out of state school that costs same as VA instate, or private school that gives money). I don't think they'd get a better ROI paying full tuition at anything at the smallest minority of top private schools, and for only that, am I willing to pay full price private and it's like a lottery chance of admission anyway - so not something I am worrying about in advance.

[Anonymous]

2 in college now - one is at an out if state flagship with merit, about $35k/year to us. There's enough left over in thwir 529 after 4 years to pay 3/4 of the cost of grad school, and we will cash flow the last 1/4. 2nd one is in a private, $90k+ cost per year. Student will finish in 3 years due to APs, but we will have to pay one full year from cash flow. 2nd will not have grad school paid for by us

Our earnings now are significantly more than when the kids were born, so the only challenge is retirement- we'd like to retire now, but need to wait until both are done with college

[Anonymous]

Anonymous wrote:OP, my child is in college NOW and all I have in her 529 is about $40,000.

We are managing. She's borrowing $5000 per year, and earning another $5000 from her summer job that she contributes. That's $10,000.

I take $10,000 from the 529.

And I cash flow $10,000 (about $1,000 per month).

That's $30,000 for the year which covers her out of state tuition, room and board, more or less. (she has a merit scholarship bringing cost of attendance close to in-state.)

So I cannot comprehend how you won't be in a MUCH better position if you already have $30K in your kid's 529 AND you are contributing $7200 annually?

And if you want to have in state fully in your 529, start with an extra $200 monthly now, so it has time to compound. That should get you there.

But yes, realize that in 18 years you will be making more and can likely cash flow a portion---what you will be paying for ECs in the teens can now go towards college (my kid was a dancer so $1K+ per month was being spent).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, my child is in college NOW and all I have in her 529 is about $40,000.

We are managing. She's borrowing $5000 per year, and earning another $5000 from her summer job that she contributes. That's $10,000.

I take $10,000 from the 529.

And I cash flow $10,000 (about $1,000 per month).

That's $30,000 for the year which covers her out of state tuition, room and board, more or less. (she has a merit scholarship bringing cost of attendance close to in-state.)

So I cannot comprehend how you won't be in a MUCH better position if you already have $30K in your kid's 529 AND you are contributing $7200 annually?

Congrats to you! You have figured out how to "make college affordable". Kid works, kid takes fed loans (it's not that much to pay off). But key is you find a school that is only $30K, which outside the T40 schools is not that difficult to do. Trust me when I say your kid will be happier with minimal debt than at a "higher ranked U"

Thanks ... my older kid managed to get need-based financial aid from several T40 schools with good endowments, too. All in all our expected contribution was about $30,000-$40,000 at each school.

Most on DCUM are not getting "need based aid". If you make more than $200-250K as a family, you won't get anything typically.

[Anonymous]

You need to look at the assumptions the calculator is making about rate of return. They often are too conservative, especially if you’re investing in 100% stocks.