How are normal people paying for college?

[Anonymous]

We have a decent 529 to split between two kids, but probably will cover about two years for each. With a HS senior who is getting decisions now, we’re waiting to see the merit aid being offered and going from there.

FWIW OP, we aren’t looking in-state either.

[Anonymous]

We have been saving for 2 kids since birth. We are definitely not able to be full pay but have a decent chunk saved. We will also likely qualify for some aid. We will additionally take out a small loan as parents and dd will take out small loan herself each year. So it's kind of a patchwork plan. Coming up with our financial plan (which we presented when we appealed our initial aid offer) was done with help of a college counselor. We didn't use his services for all the application stuff but the 1 hour consultation on structuring our FA appeal was the best $100 we've spent as the online info was too overwhelming.

[Anonymous]

Forgo kitchen renovation, any other renovation thet's a want rather than a need. Forgo new cars. Do this for 18-12 years.

[Anonymous]

18 - 20

[Anonymous]

Anonymous wrote:

Anonymous wrote:by realizing that we had 18 years to save and starting early

+1. You know college is in your parental dreams as soon as your kid is born (if not earlier). Start saving early. Two benefits from starting early: (1) You have more dollars you can put into the 529, and (2) you benefit from stock market growth over the period (your money works for you). Another poster noted that the money they paid for daycare became the college savings after their kid started school. That's smart.

This isn't hard. It just takes thinking ahead, and sticking to your goal.

Eighteen years seems like a long time but sadly it's really not. It's a lot less time to take advantage of compounding than retirement. So starting early is important. Take advantage of the year before the kid is born when you know they're coming to put money in the 529 and let it compound. You can open it in your name and change it to the kid later.

Also, we are an UMC family who ourselves attended prestigious colleges including Ivy (largely on merit scholarships). We cannot reasonably afford to pay for those types of degrees for our children. We have two young children and the projected cost of UMD in 15 years is $200K. So for two kids that $400K. Our goal is to save that and give them an in-state education debt-free. To pay $1 million for two Ivy degrees is not happening unless we have $10 million net worth at the time, which is also not happening. I will not spend more than 10% of our net worth at the time on college.

[Anonymous]

Trying to save up every penny we can for the 529.

[Anonymous]

Um, in-state is off the table if you’re a DC resident. It’s a myth that you get in-state rates https://www.thecollegefundingcoach.org/the-myth-of-the-d-c-resident-paying-in-state-tuition/

Aside from that, we are saving $20/month for each child in their 529 account. I’m sure most people here will laugh, but it’s what we can afford and it’s better than nothing.
They are in elementary school and have $23k a piece due to a hefty starting gift from a grandparent.

We will hope our child qualifies for financial aid due to our HHI being below $70k. Beyond that I have no idea what we will do to make up the rest. I guess just be real clear with the children that they need to major in a field with a clear job track and marketable skills to pay back loans. No one will be permitted to major in literature or history unless they plan on pursuing a PHD. Will also push community college or technical training/ vocational school.

[Anonymous]

Anonymous wrote:Um, in-state is off the table if you’re a DC resident. It’s a myth that you get in-state rates https://www.thecollegefundingcoach.org/the-myth-of-the-d-c-resident-paying-in-state-tuition/

Aside from that, we are saving $20/month for each child in their 529 account. I’m sure most people here will laugh, but it’s what we can afford and it’s better than nothing.
They are in elementary school and have $23k a piece due to a hefty starting gift from a grandparent.

We will hope our child qualifies for financial aid due to our HHI being below $70k. Beyond that I have no idea what we will do to make up the rest. I guess just be real clear with the children that they need to major in a field with a clear job track and marketable skills to pay back loans. No one will be permitted to major in literature or history unless they plan on pursuing a PHD. Will also push community college or technical training/ vocational school.

If they’ve got the stats for Ivies or equivalent, they’ll go to school for free...

[Anonymous]

If one of the parents has a job at a university that offers tuition remission and/or tuition exchange. Great benefit of being a university employee.

[Anonymous]

The way we were able to pay for college (almost done, last one in college) was to start saving when we got married. When they were born, we opened up the 529s, but also funded another savings account in case they did not go instate public.

We were making around $100k when the the first was born and we are now closing on on $200k.

[Anonymous]

Anonymous wrote:Normal people make $70k a year. Their kids go to state schools or community colleges.

People in that HHI bracket get FA.

[Anonymous]

Anonymous wrote:We have a decent 529 to split between two kids, but probably will cover about two years for each. With a HS senior who is getting decisions now, we’re waiting to see the merit aid being offered and going from there.

FWIW OP, we aren’t looking in-state either.

If you’re in MD or VA especially there are a lot of options to just say it’s off the table.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Kid applies to safeties, which — because kid’s stats will be great comparatively — will offer various amounts of merit scholarships. Then compare and contrast.

You might think. That was part of our strategy. I will be interested to see if that winds up being true this year. I have seen people claim that schools are giving out smaller merit awards to more students, rather than larger awards to a smaller population.

Has anyone else seen that? As an example, Drexel, which was a safety for my kid, seems to have given out small merit awards, even for students with high GPAs and test scores.

Right. I’m the PP, and should’ve added that applying to safeties known for merit is only part of the plan. We have also been saving as much as we reasonably can in 529s.

The amount of the award will obviously depend on a number of factors, and some schools are tightening up. Some good options in the past (Pitt, Drexel, Hofstra) may not pan out as hoped.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Kid applies to safeties, which — because kid’s stats will be great comparatively — will offer various amounts of merit scholarships. Then compare and contrast.

You might think. That was part of our strategy. I will be interested to see if that winds up being true this year. I have seen people claim that schools are giving out smaller merit awards to more students, rather than larger awards to a smaller population.

Has anyone else seen that? As an example, Drexel, which was a safety for my kid, seems to have given out small merit awards, even for students with high GPAs and test scores.

I work for a university. It seems that we are doing this too.

[Anonymous]

Anonymous wrote:If one of the parents has a job at a university that offers tuition remission and/or tuition exchange. Great benefit of being a university employee.

PP. Read the fine print though first!

The list of reciprocal universities is not very impressive where I work.