Paying for and saving for college - how do UMC people do it?

[Anonymous]

Anonymous wrote:Why do people whine so much about college costs?? Just tell your kid to go to UMD and live at home - it's really not that expensive.

I know someone who is a C-level exec at one of the biggest companies in the area; they went to a mediocre state school and earn a 7-figure income. No one cares about your $80K/year private college unless you went to Harvard or Princeton. And even then, the intelligence and drive that got you into Harvard account for far more of your success than any connection or any other benefits you gained from the university itself.

And I can guarantee that your average or above-average kid's life is sure as hell not going to be any better because they went to Swarthmore instead of UMD for their BA in English.

100%

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most people don’t get financial aid. I make 1/3 of what you do. No FA, I pay as I go, and choose state schools.

FA is for people making sub 50k

I earn appr. $80k and my DS got FA at every college he got into. Grants and work study.

Exactly. Most married couples in this area make over $200k and don’t qualify.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Not a news flash, but tuition costs are staggering. Do most people apply for and get financial aid, unless they are truly rich?

Spouse and I make about $320,000 per year with about $400,000 equity on a nice four-bedroom suburban home which we bought 10 years ago.
Kids are 12 and 7. We have $30,000 in the 12-year-old's college savings account and $15,000 in the younger one's account.

We've been prioritizing, on our planner's advice, saving for retirement, and we have about $800,000 combined there. We're 43. Thankfully done paying for daycare and do not pay for school now - both kids are in public.

FIL will likely contribute some money toward college but certainly isn't funding their educations. We consider ourselves comfortable enough but certainly need to work and certainly don't have a slush fund to draw from for college.

How do more-or-less regular people do it? I worry that we make too much for aid, but we don't have enough money to have oodles of money for college! I would appreciate any "how to do it" posts.

You're what's called a "doughnut hole" family.

With a much lower HHI ($200K), and living in a small affordable 4-BR suburban house in Prince George's County, we paid for all 4 of our kids to finish their undergraduate degrees.

For us, the "how to do it" secret was always merit aid. All our kids could have gone to elite universities with high COIs, but they opted for slightly lower-tier schools instead that offered substantive merit aid. We were able to pay out of pocket for remaining costs.

That is how it should be done. You save what you can, tell your kids what you can afford/are willing to contribute, then help them find a great school that is affordable. Plenty of schools outside the T30 offer merit. Just search for one where your kid is at/above 75% and you will likely get some merit. If you need more, then find a place they are at/above 90%. My "average kid" with a 26 ACT and 3.5UW GPA got 35% merit at a T80 and 70% merit at a ~T120. decent Volunteering and EC that demonstrate character (which is valued at Jesuit universities). First was never more than $40-45K all in (books, travel, etc) per year. 2nd would have been about $30K/year all in---kid picked the first.
Had we needed financial assistance, we could have found places that would have only been $15-20K (private schools)---or state schools that would end up being similar.

Point is, merit is out there if you ditch the "T30 or die" mentality. Much better to come out of college debt free or with minimal debt than to come out with a huge financial burden.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why do people whine so much about college costs?? Just tell your kid to go to UMD and live at home - it's really not that expensive.

I know someone who is a C-level exec at one of the biggest companies in the area; they went to a mediocre state school and earn a 7-figure income. No one cares about your $80K/year private college unless you went to Harvard or Princeton. And even then, the intelligence and drive that got you into Harvard account for far more of your success than any connection or any other benefits you gained from the university itself.

And I can guarantee that your average or above-average kid's life is sure as hell not going to be any better because they went to Swarthmore instead of UMD for their BA in English.

Most kids will not get into UMD.

So find a state school they will get into that you can afford. Or search for merit at private schools. Drop out of the Top Tier (T30) and merit begins to appear. So find a place where your kid is at/above 85-90% and acceptance rates are 40-50%+ and if they give merit, your kid will likely get a LOT. These places do exist. Your kid can be extremely happy there. Apply to the honors college/program, etc. to help them find "their group for academics" There will be like minded, smart people. Your kid will get a great education, minimal debt and graduate college and being adulthood. There are plenty of places where college only costs $25-30K/year if you search it out, or even less if that's what your finances need.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why do people whine so much about college costs?? Just tell your kid to go to UMD and live at home - it's really not that expensive.

I know someone who is a C-level exec at one of the biggest companies in the area; they went to a mediocre state school and earn a 7-figure income. No one cares about your $80K/year private college unless you went to Harvard or Princeton. And even then, the intelligence and drive that got you into Harvard account for far more of your success than any connection or any other benefits you gained from the university itself.

And I can guarantee that your average or above-average kid's life is sure as hell not going to be any better because they went to Swarthmore instead of UMD for their BA in English.

Most kids will not get into UMD.

So find a state school they will get into that you can afford. Or search for merit at private schools. Drop out of the Top Tier (T30) and merit begins to appear. So find a place where your kid is at/above 85-90% and acceptance rates are 40-50%+ and if they give merit, your kid will likely get a LOT. These places do exist. Your kid can be extremely happy there. Apply to the honors college/program, etc. to help them find "their group for academics" There will be like minded, smart people. Your kid will get a great education, minimal debt and graduate college and being adulthood. There are plenty of places where college only costs $25-30K/year if you search it out, or even less if that's what your finances need.

This is a great strategy if you have saved regularly over the years. The OP is in a different position because they've only saved $30k for their 12 year old AND they have a high HHI. So... if their kid is smart and highly qualified, they may have some options. But even with (a lot of) merit aid, most people with OP's household income should expect to pay $20k/year for college once all expenses are considered.

[Anonymous]

I posted on here once that my child was living at home and commuting and was slammed by multiple posters.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why do people whine so much about college costs?? Just tell your kid to go to UMD and live at home - it's really not that expensive.

I know someone who is a C-level exec at one of the biggest companies in the area; they went to a mediocre state school and earn a 7-figure income. No one cares about your $80K/year private college unless you went to Harvard or Princeton. And even then, the intelligence and drive that got you into Harvard account for far more of your success than any connection or any other benefits you gained from the university itself.

And I can guarantee that your average or above-average kid's life is sure as hell not going to be any better because they went to Swarthmore instead of UMD for their BA in English.

Most kids will not get into UMD.

So find a state school they will get into that you can afford. Or search for merit at private schools. Drop out of the Top Tier (T30) and merit begins to appear. So find a place where your kid is at/above 85-90% and acceptance rates are 40-50%+ and if they give merit, your kid will likely get a LOT. These places do exist. Your kid can be extremely happy there. Apply to the honors college/program, etc. to help them find "their group for academics" There will be like minded, smart people. Your kid will get a great education, minimal debt and graduate college and being adulthood. There are plenty of places where college only costs $25-30K/year if you search it out, or even less if that's what your finances need.

This is a great strategy if you have saved regularly over the years. The OP is in a different position because they've only saved $30k for their 12 year old AND they have a high HHI. So... if their kid is smart and highly qualified, they may have some options. But even with (a lot of) merit aid, most people with OP's household income should expect to pay $20k/year for college once all expenses are considered.

So then OP has a few choices, since oldest is only 12. Adjust budget and start saving $15-20K/year for the next 6 years. with their income, they should be able to save $80-100K before kid starts college. Then continue cash flowing that $15-20K plus draw on savings. Do that and kid could attend a T50-80 school easily (if they have the resume).
If they can't find a way to save that much, then they need to find a school where their kids can get significant merit, or a state school that is $25-30K and have the kid work during summer/all breaks to earn $10K per year, take $5.5K federal loans and parent take loans for the remainder/cash flow.
Yes, they won't be attending T20 schools without taking significant loans---that's the choice they made when they did not save for college. They made choices now they need to live with them and find a college they can afford. Their kid can still easily attend college affordably, but they may not get to attend a T20/30 school. Hint: most people wont get to do that even if they have the resume and the cash.

[Anonymous]

Anonymous wrote:I posted on here once that my child was living at home and commuting and was slammed by multiple posters.

Ignore those people. Your kid will thank you later when they exit college with minimal loans. Keep your eye on the ultimate goal, which is to get an education. That is what your child achieved/will achieve, with out major debt. That is a huge gift for your kid. R&B is over $15K/year typically. It doesn't cost you any more to have them living at home and eating at home than when they were in HS. Food costs are minimal (and kid can pack food if they truly need to/can't afford to eat lunch on campus). Only real cost is gas and a car/car insurance/parking permit---much better to invest the first year R&B cost into a good vehicle ($15 K will get a good used vehicle), and they kid will have this car to use when they graduate.

[Anonymous]

I think people like us, not rich enough to not plan for it, but too rich to get aid, just have to prioritize saving from the day the kid is born. This is what we’ve done and we make similar to op. We put aside a set amount for each kid each month, and once each kid enters public school we up the monthly contribution. It’s not an insignificant amount of money. Our 2 yo has 18k and our 6 yo has 35k so far. We should be good to fully fund with the savings for each girl to go to an in state school plus the room and board. If they want to attend private we will try to pay out of pocket for whatever the savings doesn’t cover. We’ve been used to paying 40k per year for daycare so if we can do that we should be good for whatever college they choose.

[Anonymous]

Anonymous wrote:I think people like us, not rich enough to not plan for it, but too rich to get aid, just have to prioritize saving from the day the kid is born. This is what we’ve done and we make similar to op. We put aside a set amount for each kid each month, and once each kid enters public school we up the monthly contribution. It’s not an insignificant amount of money. Our 2 yo has 18k and our 6 yo has 35k so far. We should be good to fully fund with the savings for each girl to go to an in state school plus the room and board. If they want to attend private we will try to pay out of pocket for whatever the savings doesn’t cover. We’ve been used to paying 40k per year for daycare so if we can do that we should be good for whatever college they choose.

It sounds like you are rich enough to pay and can take that day care money and put it in a college fund.

[Anonymous]

UMD and many other schools do not allow freshmen commuters.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We did not save for kids college, prioritized our investments. We was not eligible for any financial aid with the gross income around $250,000. Both kids got full merit scholarships. There are a lot of free college options, I don't see any need to pay high $$$ for college when there are plenty free options. One kids was admitted to three Ivy league schools, chose to go to the school with full ride instead.

Really gross that you took money from another student who needed it as you were too selfish to save.

I don’t think you understand the term “merit scholarship.”

Yes, I do. Greedy selfish parents who refuse to save a dime and can afford college.

You can send your kids to free college too, there are plenty full rides or full tuition options among top schools (not ivy leaves, but even one ivy gave us a "grant" by reducing tuition from $68k to $45k).

I'd rather save and send my kid to a decent school and give them options. No, not everyone can send their kid to school for free. Just people like you who know how to manipulate the system.

How is it a manipulation if kid gets admitted to top schools, including Ivies?

It is not. It is just one of the strategies to get college education at low or no cost. I don't see any difference with loan forgiveness.

[Anonymous]

Anonymous wrote:
UMD and many other schools do not allow freshmen commuters.

Yes they do if family lives close enough. UIUC, UMich, Berkeley, GMU, VT, PSU, UNC and GW are just a few examples.

For the VERY few schools that don’t, well, those schools are just not a realistic option I suppose.

[Anonymous]

We don't save in 529s as we want more flexibility but earmark a portion of a high-yield account for college, and also plan to just cash flow some of it. 529s are restrictive.

[Anonymous]

Didn’t read all of this. Two federal government workers here. We purchased our home with the knowledge that we would be rolling our daycare costs into college savings accounts for the kids, so when they started 1st grade we just started putting that $900 per month per kid into their 529s rather than sending a check to their preschool.

They will probably still need some financial aid/scholarships/loans, but it’s the best we could do.