Did you folks not do ANY saving?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Here is the answer to your question, OP.

Our combined household income is near 200K, but this is a recent development since I finished a degree. Prior, between reduced job hours and paying tuition, we made under 150. My husband's job is tenured, and mine is not. I see no reason to assume that I will always be employed when my child attends college. My husband's job, if it is our only income, would get us close to a free ride in a top private college since we have two children. I make less after taxes than the HYPSM tuition, so if a child gets into a top school, my salary will add absolutely nothing to the table. My salary is 90K, but remove taxes and do your math.

We never saved a penny for college, instead paying down our mortgage and our rental property mortgage instead. Older child is an excellent student, and may opt to convert her smarts into a free ride in college. If she gets into a tippy top private college with minimal financial aid, we'll open a line of credit from the house and borrow cheaply. If I lose my job or something else arises, we'll get financial aid. Whatever happens, I recommend that the child ONLY applies to colleges that commit to meet the financial aid requirements with grants, not loans.

Why would I EVER want to open a 529 account committing us to paying college tuition when so many factors can change overnight? I view 529 accounts as a option once all other reasonable investment avenues have been exhausted. Prepayment of UMD tuition is more sensible, honestly.

The 4 years my older child is in college may be great for going back to school myself for a PhD (reduce our income / expected family contribution), or perhaps joining a volunteer overseas organization as a resume builder / income reducer. Worst case scenario, the child knows that we'll pay the equivalent of UMD tuition, and she takes out loans for the rest. Two years in consulting of some kind, while living with a roommate and us paying for her utilities and food, and she'll pay it off.

Many top private colleges use the CSS profile for financial aid calculations, not EFC. CSS looks at more factors well beyond your income - such as equity in your home, amount in retirement accounts, etc. I would not count on a full ride to any school (full ride is tuition + room and board + books, etc.), let alone a top private one, which is very hard to get into. It is actually quite rare to get a full ride. Full tuition is more common and is usually given to students who go to a school that is a tier below their capabilities. Room, board, and books still need to be paid for.

We don't have enough in assets to trigger any significant CSS penalty; neither do most families. It looks like our EFC will be around 50K with both of us working. We can cover half from income and the other half from an equity line of credit, which the kid will ideally replenish from a salary on graduation. We only have to even consider this scenario if the kid gets into an Ivy; all other roads lead to UMD, which we can simply pay for, and so can many middle class families that did not save in advance.

If I lose my job or something else drastic happens, we will have our money in protected assets (mortgage, 401k), not in earmarked 529's. If that happens, our EFC will plunge to reflect our strained circumstances.

[Anonymous]

We had to choose between funding retirement or putting money away for college. We don't earn enough to do both after we pay our mortgage. We continue to only put money away for retirement. Our kids will have to get merit aid or go to a state school.
I don't understand how people can do both earning under 150k in a high cost of living area if they bought a house without help from their families and had to pay for daycare.

[Anonymous]

buy a condo or townhouse?

[Anonymous]

Anonymous wrote:buy a condo or townhouse?

That is exactly what we had done.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Here is the answer to your question, OP.

Our combined household income is near 200K, but this is a recent development since I finished a degree. Prior, between reduced job hours and paying tuition, we made under 150. My husband's job is tenured, and mine is not. I see no reason to assume that I will always be employed when my child attends college. My husband's job, if it is our only income, would get us close to a free ride in a top private college since we have two children. I make less after taxes than the HYPSM tuition, so if a child gets into a top school, my salary will add absolutely nothing to the table. My salary is 90K, but remove taxes and do your math.

We never saved a penny for college, instead paying down our mortgage and our rental property mortgage instead. Older child is an excellent student, and may opt to convert her smarts into a free ride in college. If she gets into a tippy top private college with minimal financial aid, we'll open a line of credit from the house and borrow cheaply. If I lose my job or something else arises, we'll get financial aid. Whatever happens, I recommend that the child ONLY applies to colleges that commit to meet the financial aid requirements with grants, not loans.

Why would I EVER want to open a 529 account committing us to paying college tuition when so many factors can change overnight? I view 529 accounts as a option once all other reasonable investment avenues have been exhausted. Prepayment of UMD tuition is more sensible, honestly.

The 4 years my older child is in college may be great for going back to school myself for a PhD (reduce our income / expected family contribution), or perhaps joining a volunteer overseas organization as a resume builder / income reducer. Worst case scenario, the child knows that we'll pay the equivalent of UMD tuition, and she takes out loans for the rest. Two years in consulting of some kind, while living with a roommate and us paying for her utilities and food, and she'll pay it off.

Many top private colleges use the CSS profile for financial aid calculations, not EFC. CSS looks at more factors well beyond your income - such as equity in your home, amount in retirement accounts, etc. I would not count on a full ride to any school (full ride is tuition + room and board + books, etc.), let alone a top private one, which is very hard to get into. It is actually quite rare to get a full ride. Full tuition is more common and is usually given to students who go to a school that is a tier below their capabilities. Room, board, and books still need to be paid for.

We don't have enough in assets to trigger any significant CSS penalty; neither do most families. It looks like our EFC will be around 50K with both of us working. We can cover half from income and the other half from an equity line of credit, which the kid will ideally replenish from a salary on graduation. We only have to even consider this scenario if the kid gets into an Ivy; all other roads lead to UMD, which we can simply pay for, and so can many middle class families that did not save in advance.

If I lose my job or something else drastic happens, we will have our money in protected assets (mortgage, 401k), not in earmarked 529's. If that happens, our EFC will plunge to reflect our strained circumstances.

I don't know if I would call it a CSS penalty. It's just a different way of calculating a family's ability to pay. Colleges that use it can take into account your home equity, your retirement funds, etc. Both EFC and CSS will count your rental property as an asset plus any income you generate from it. UMD in state is about $25K with tuition and room and board. If you can simply pay it out of pocket, then what do you currently do with that extra $2K per month? Is it going towards your mortgage? Or is it being spent on stuff that you will cut back on. Genuinely curious.

I am on a Facebook page about paying for college that has thousands of members. And most "middle class" (which is a hard-to-define term) people on there cannot cash flow college to the tune of $25K. Those who did not save anything for college are scrambling, are shocked at their EFC numbers, are disappointed in how much colleges offer them, and can't believe the high interest rates on student loans. (I agree that a HELOC is the way to go.) It's good that you have the means to pay for it out of pocket.

[Anonymous]

Anonymous wrote:2. With the same income, the EFC won't be drastically different for the two families, as assets don't count as much as income, therefore their tuition shouldn't be drastically different. This will be less true for schools that use the CSS profile.
3. Unless their income is extremely low, neither family will likely get much financial aid at all other than loans. Student loans come with a fairly high interest rate beyond the federal loans which total $27K for four years.

Rational response. We have been discussing just how much assets increase EFC. Please see posts above. Define drastically - is $40k over 4 years drastic in your opinion? Let's assume that both families wouldn't max out on tuition based on income and that any difference in COA is solely due to assets. Do we agree that there are income levels for which this is true.

Even if student loans come with a high interest rate, family Spender has the option to double-scrimping over the 4 years their kids are in college and a few years after and they'll still be ahead in QoL dollar years. Obviously, under a fair system, they shouldn't be.

The reason they are, btw, is that having no assets is taken as a proxy for having been unable, rather than unwilling to save due to personal circumstances.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Here is the answer to your question, OP.

Our combined household income is near 200K, but this is a recent development since I finished a degree. Prior, between reduced job hours and paying tuition, we made under 150. My husband's job is tenured, and mine is not. I see no reason to assume that I will always be employed when my child attends college. My husband's job, if it is our only income, would get us close to a free ride in a top private college since we have two children. I make less after taxes than the HYPSM tuition, so if a child gets into a top school, my salary will add absolutely nothing to the table. My salary is 90K, but remove taxes and do your math.

We never saved a penny for college, instead paying down our mortgage and our rental property mortgage instead. Older child is an excellent student, and may opt to convert her smarts into a free ride in college. If she gets into a tippy top private college with minimal financial aid, we'll open a line of credit from the house and borrow cheaply. If I lose my job or something else arises, we'll get financial aid. Whatever happens, I recommend that the child ONLY applies to colleges that commit to meet the financial aid requirements with grants, not loans.

Why would I EVER want to open a 529 account committing us to paying college tuition when so many factors can change overnight? I view 529 accounts as a option once all other reasonable investment avenues have been exhausted. Prepayment of UMD tuition is more sensible, honestly.

The 4 years my older child is in college may be great for going back to school myself for a PhD (reduce our income / expected family contribution), or perhaps joining a volunteer overseas organization as a resume builder / income reducer. Worst case scenario, the child knows that we'll pay the equivalent of UMD tuition, and she takes out loans for the rest. Two years in consulting of some kind, while living with a roommate and us paying for her utilities and food, and she'll pay it off.

Many top private colleges use the CSS profile for financial aid calculations, not EFC. CSS looks at more factors well beyond your income - such as equity in your home, amount in retirement accounts, etc. I would not count on a full ride to any school (full ride is tuition + room and board + books, etc.), let alone a top private one, which is very hard to get into. It is actually quite rare to get a full ride. Full tuition is more common and is usually given to students who go to a school that is a tier below their capabilities. Room, board, and books still need to be paid for.

We don't have enough in assets to trigger any significant CSS penalty; neither do most families. It looks like our EFC will be around 50K with both of us working. We can cover half from income and the other half from an equity line of credit, which the kid will ideally replenish from a salary on graduation. We only have to even consider this scenario if the kid gets into an Ivy; all other roads lead to UMD, which we can simply pay for, and so can many middle class families that did not save in advance.

If I lose my job or something else drastic happens, we will have our money in protected assets (mortgage, 401k), not in earmarked 529's. If that happens, our EFC will plunge to reflect our strained circumstances.

I don't know if I would call it a CSS penalty. It's just a different way of calculating a family's ability to pay. Colleges that use it can take into account your home equity, your retirement funds, etc. Both EFC and CSS will count your rental property as an asset plus any income you generate from it. UMD in state is about $25K with tuition and room and board. If you can simply pay it out of pocket, then what do you currently do with that extra $2K per month? Is it going towards your mortgage? Or is it being spent on stuff that you will cut back on. Genuinely curious.

I am on a Facebook page about paying for college that has thousands of members. And most "middle class" (which is a hard-to-define term) people on there cannot cash flow college to the tune of $25K. Those who did not save anything for college are scrambling, are shocked at their EFC numbers, are disappointed in how much colleges offer them, and can't believe the high interest rates on student loans. (I agree that a HELOC is the way to go.) It's good that you have the means to pay for it out of pocket.

We are about to have our last child out of daycare and into public schools, improving our cash flow. We are actually having a conversation on how to distribute that 1.5K per month as I write to you. I think we'll put it into retirement savings, but it may end up in the mortgage; definitely not in 529. The other $500 will come from not having to pay the older kid's extra-curricular fees once college starts. Hence we can float $25K per year. The rest is for the older kid to borrow if the kid matriculates into college worth borrowing for, and decides to pursue that path.

Following the recommendation on DCUM, I calculated EFC using MyInTuition with and without the rental property for several top schools. Look like our penalty for retaining the rental would be about 3K across the Ivies. We make more than that per year on the property, so unless our tenants want to buy it from us and save us the realtor fee, we'll continue to rent it. There will be no asset penalty from owning and gradually paying down our modest townhouse.

[Anonymous]

Anonymous wrote:

Anonymous wrote:2. With the same income, the EFC won't be drastically different for the two families, as assets don't count as much as income, therefore their tuition shouldn't be drastically different. This will be less true for schools that use the CSS profile.
3. Unless their income is extremely low, neither family will likely get much financial aid at all other than loans. Student loans come with a fairly high interest rate beyond the federal loans which total $27K for four years.

Rational response. We have been discussing just how much assets increase EFC. Please see posts above. Define drastically - is $40k over 4 years drastic in your opinion? Let's assume that both families wouldn't max out on tuition based on income and that any difference in COA is solely due to assets. Do we agree that there are income levels for which this is true.

Even if student loans come with a high interest rate, family Spender has the option to double-scrimping over the 4 years their kids are in college and a few years after and they'll still be ahead in QoL dollar years. Obviously, under a fair system, they shouldn't be.

The reason they are, btw, is that having no assets is taken as a proxy for having been unable, rather than unwilling to save due to personal circumstances.

Parental assets are counted at a rate of about 5.x%. Income is counted at about 30-40% (assume 33%). So if two families each make $100K and one family also has $100K in assets, the Spender family would be expected to pay $33K for college. The Miser family would be expected to pay $38K. So about a $5K difference. I'm sure we can maneuver the numbers so that there is a $10K difference or a $2K difference. But here's the other thing, while many colleges ask for the EFC, most are not a "Meets needs" college which means, that the EFC means very little. Colleges look at the EFC and then offer what they want. The two families above might each be given nothing for college. Nothing. "Meets Needs" colleges are few and far between and are generally hard to get into.

In-State colleges in general are the best deals for most people and many are notoriously stingy with aid other than loans. Since this is a DC board, look at how much aid students are getting from UMD, UVA, JMU, etc. There are probably reports on this board or on College Confidential. I have a rising senior in college and have money saved to fully pay for the equivalent of a state school. I have friends who have very little or nothing saved. One is talking about getting a job to cash flow it. Another is limiting her options of where her child can go (based on those who give good aid, financial or merit). I am fortunate to not be in that position. That is high QoL to me.

[Anonymous]

Anonymous wrote:

The reason they are, btw, is that having no assets is taken as a proxy for having been unable, rather than unwilling to save due to personal circumstances.

Question: How can the college tell the unables from the unwillings?

[Anonymous]

Anonymous wrote:Your poor children. I hope they have somehow grown up with more responsible attitudes than you.

Insults are most effective when directed at individuals.

The good thing about your is that it should offend no one, as we can all assume it about the other side.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Here is the answer to your question, OP.

Our combined household income is near 200K, but this is a recent development since I finished a degree. Prior, between reduced job hours and paying tuition, we made under 150. My husband's job is tenured, and mine is not. I see no reason to assume that I will always be employed when my child attends college. My husband's job, if it is our only income, would get us close to a free ride in a top private college since we have two children. I make less after taxes than the HYPSM tuition, so if a child gets into a top school, my salary will add absolutely nothing to the table. My salary is 90K, but remove taxes and do your math.

We never saved a penny for college, instead paying down our mortgage and our rental property mortgage instead. Older child is an excellent student, and may opt to convert her smarts into a free ride in college. If she gets into a tippy top private college with minimal financial aid, we'll open a line of credit from the house and borrow cheaply. If I lose my job or something else arises, we'll get financial aid. Whatever happens, I recommend that the child ONLY applies to colleges that commit to meet the financial aid requirements with grants, not loans.

Why would I EVER want to open a 529 account committing us to paying college tuition when so many factors can change overnight? I view 529 accounts as a option once all other reasonable investment avenues have been exhausted. Prepayment of UMD tuition is more sensible, honestly.

The 4 years my older child is in college may be great for going back to school myself for a PhD (reduce our income / expected family contribution), or perhaps joining a volunteer overseas organization as a resume builder / income reducer. Worst case scenario, the child knows that we'll pay the equivalent of UMD tuition, and she takes out loans for the rest. Two years in consulting of some kind, while living with a roommate and us paying for her utilities and food, and she'll pay it off.

Many top private colleges use the CSS profile for financial aid calculations, not EFC. CSS looks at more factors well beyond your income - such as equity in your home, amount in retirement accounts, etc. I would not count on a full ride to any school (full ride is tuition + room and board + books, etc.), let alone a top private one, which is very hard to get into. It is actually quite rare to get a full ride. Full tuition is more common and is usually given to students who go to a school that is a tier below their capabilities. Room, board, and books still need to be paid for.

We don't have enough in assets to trigger any significant CSS penalty; neither do most families. It looks like our EFC will be around 50K with both of us working. We can cover half from income and the other half from an equity line of credit, which the kid will ideally replenish from a salary on graduation. We only have to even consider this scenario if the kid gets into an Ivy; all other roads lead to UMD, which we can simply pay for, and so can many middle class families that did not save in advance.

If I lose my job or something else drastic happens, we will have our money in protected assets (mortgage, 401k), not in earmarked 529's. If that happens, our EFC will plunge to reflect our strained circumstances.

I don't know if I would call it a CSS penalty. It's just a different way of calculating a family's ability to pay. Colleges that use it can take into account your home equity, your retirement funds, etc. Both EFC and CSS will count your rental property as an asset plus any income you generate from it. UMD in state is about $25K with tuition and room and board. If you can simply pay it out of pocket, then what do you currently do with that extra $2K per month? Is it going towards your mortgage? Or is it being spent on stuff that you will cut back on. Genuinely curious.

I am on a Facebook page about paying for college that has thousands of members. And most "middle class" (which is a hard-to-define term) people on there cannot cash flow college to the tune of $25K. Those who did not save anything for college are scrambling, are shocked at their EFC numbers, are disappointed in how much colleges offer them, and can't believe the high interest rates on student loans. (I agree that a HELOC is the way to go.) It's good that you have the means to pay for it out of pocket.

We are about to have our last child out of daycare and into public schools, improving our cash flow. We are actually having a conversation on how to distribute that 1.5K per month as I write to you. I think we'll put it into retirement savings, but it may end up in the mortgage; definitely not in 529. The other $500 will come from not having to pay the older kid's extra-curricular fees once college starts. Hence we can float $25K per year. The rest is for the older kid to borrow if the kid matriculates into college worth borrowing for, and decides to pursue that path.

Following the recommendation on DCUM, I calculated EFC using MyInTuition with and without the rental property for several top schools. Look like our penalty for retaining the rental would be about 3K across the Ivies. We make more than that per year on the property, so unless our tenants want to buy it from us and save us the realtor fee, we'll continue to rent it. There will be no asset penalty from owning and gradually paying down our modest townhouse.

Good luck with your plan! I hope it works out for you. IMHO, saving for retirement is never a bad thing!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Here is the answer to your question, OP.

Our combined household income is near 200K, but this is a recent development since I finished a degree. Prior, between reduced job hours and paying tuition, we made under 150. My husband's job is tenured, and mine is not. I see no reason to assume that I will always be employed when my child attends college. My husband's job, if it is our only income, would get us close to a free ride in a top private college since we have two children. I make less after taxes than the HYPSM tuition, so if a child gets into a top school, my salary will add absolutely nothing to the table. My salary is 90K, but remove taxes and do your math.

We never saved a penny for college, instead paying down our mortgage and our rental property mortgage instead. Older child is an excellent student, and may opt to convert her smarts into a free ride in college. If she gets into a tippy top private college with minimal financial aid, we'll open a line of credit from the house and borrow cheaply. If I lose my job or something else arises, we'll get financial aid. Whatever happens, I recommend that the child ONLY applies to colleges that commit to meet the financial aid requirements with grants, not loans.

Why would I EVER want to open a 529 account committing us to paying college tuition when so many factors can change overnight? I view 529 accounts as a option once all other reasonable investment avenues have been exhausted. Prepayment of UMD tuition is more sensible, honestly.

The 4 years my older child is in college may be great for going back to school myself for a PhD (reduce our income / expected family contribution), or perhaps joining a volunteer overseas organization as a resume builder / income reducer. Worst case scenario, the child knows that we'll pay the equivalent of UMD tuition, and she takes out loans for the rest. Two years in consulting of some kind, while living with a roommate and us paying for her utilities and food, and she'll pay it off.

Many top private colleges use the CSS profile for financial aid calculations, not EFC. CSS looks at more factors well beyond your income - such as equity in your home, amount in retirement accounts, etc. I would not count on a full ride to any school (full ride is tuition + room and board + books, etc.), let alone a top private one, which is very hard to get into. It is actually quite rare to get a full ride. Full tuition is more common and is usually given to students who go to a school that is a tier below their capabilities. Room, board, and books still need to be paid for.

We don't have enough in assets to trigger any significant CSS penalty; neither do most families. It looks like our EFC will be around 50K with both of us working. We can cover half from income and the other half from an equity line of credit, which the kid will ideally replenish from a salary on graduation. We only have to even consider this scenario if the kid gets into an Ivy; all other roads lead to UMD, which we can simply pay for, and so can many middle class families that did not save in advance.

If I lose my job or something else drastic happens, we will have our money in protected assets (mortgage, 401k), not in earmarked 529's. If that happens, our EFC will plunge to reflect our strained circumstances.

I don't know if I would call it a CSS penalty. It's just a different way of calculating a family's ability to pay. Colleges that use it can take into account your home equity, your retirement funds, etc. Both EFC and CSS will count your rental property as an asset plus any income you generate from it. UMD in state is about $25K with tuition and room and board. If you can simply pay it out of pocket, then what do you currently do with that extra $2K per month? Is it going towards your mortgage? Or is it being spent on stuff that you will cut back on. Genuinely curious.

I am on a Facebook page about paying for college that has thousands of members. And most "middle class" (which is a hard-to-define term) people on there cannot cash flow college to the tune of $25K. Those who did not save anything for college are scrambling, are shocked at their EFC numbers, are disappointed in how much colleges offer them, and can't believe the high interest rates on student loans. (I agree that a HELOC is the way to go.) It's good that you have the means to pay for it out of pocket.

We are about to have our last child out of daycare and into public schools, improving our cash flow. We are actually having a conversation on how to distribute that 1.5K per month as I write to you. I think we'll put it into retirement savings, but it may end up in the mortgage; definitely not in 529. The other $500 will come from not having to pay the older kid's extra-curricular fees once college starts. Hence we can float $25K per year. The rest is for the older kid to borrow if the kid matriculates into college worth borrowing for, and decides to pursue that path.

Following the recommendation on DCUM, I calculated EFC using MyInTuition with and without the rental property for several top schools. Look like our penalty for retaining the rental would be about 3K across the Ivies. We make more than that per year on the property, so unless our tenants want to buy it from us and save us the realtor fee, we'll continue to rent it. There will be no asset penalty from owning and gradually paying down our modest townhouse.

Good luck with your plan! I hope it works out for you. IMHO, saving for retirement is never a bad thing!

Thank you. UMD-CP is such a good option for the technically minded kids in Maryland that anything else seems like a luxury, not a necessity. I certainly feel as a parent that the murky benefit of top private college attendance in a technical field is not worth drastically changing our family's modest middle class lifestyle. Now, if f my kid wanted to become a historian or a writer, and had the chops to get it done given the right degree, I would have to change my tune.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

The reason they are, btw, is that having no assets is taken as a proxy for having been unable, rather than unwilling to save due to personal circumstances.

Question: How can the college tell the unables from the unwillings?

The colleges can only go by what they ask. If using FAFSA, then that is primarily income and assets (non-retirement, non-primary home). If you make $150K, live in Kansas, have no assets because you spend all of your discretionary money on European vacations, then you will be judged on your $150K income. If you make $150K, live in NYC, have no assets because of the high cost of living, you will be judged on your $150K income. The first may be unwilling to save and the second unable, but it doesn't matter.

Assets are taken into consideration unless it is in a retirement account or the house you live. However, income counts much more in the financial aid equation than assets do. So your income has the greatest effect on how much your expected family contribution (EFC) is. Note, that even if you have a low EFC, does not necessarily mean you will get a lot of aid or any at all. It may mean a $4000 Pell Grant, if it is sufficiently low. If not, it may mean some extra loans or work study and that's it.

CSS Profile is a little different. The 200 or so colleges (often the more elite ones) that use it look at a much broader picture of your financial situation. They may take into account the equity in your primary home and your retirement assets, so if you have saved a lot in retirement but make a low income, a CSS school may not offer you as much money as a school that uses FAFSA. Again, they both may offer you nothing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Notice how this post was not answered, nor are any of the other people complaining about "the lucky poors who get financial aid".

I have $300k saved across 529 and other nonretirement assets. Based on the 5% formula, this would increase my EFC by $15k per year, so I would be paying $60k more than if I hadn't saved.

Thanks for answering, and congrats for being a diligent and responsible parent.

I do not know if you were one of the previous posters, but are you saying you’d be better off with $60K more of financial aid and no savings to pay for college? Probably not, right?

The implication from some people is that it’s a zero sum game and if they hadn’t saved they would be getting a free ride. It’s not so. You’d be way worse off, to the point of college being impossible.

+1 And, if you have an income that lets you save $300K for college your EFC is going to be really high anyway so regardless, you aren't getting need-based aid. Income is the biggest factor in EFC.

+2 It's true that every 100k of assets would add a 5k contribution to EFC. But most people who have 100k+ of assets saved have a high enough income that the assets aren't going to matter. Check out an NPC for various schools. Most don't give a dime if your income is over 120k regardless of assets unless you have multiple kids in college.

[Anonymous]

Anonymous wrote:We had to choose between funding retirement or putting money away for college. We don't earn enough to do both after we pay our mortgage. We continue to only put money away for retirement. Our kids will have to get merit aid or go to a state school.
I don't understand how people can do both earning under 150k in a high cost of living area if they bought a house without help from their families and had to pay for daycare.

You only pay day care for a few years. You buy the cheapest house you can find. We don't get any help, have that kind of income and are fine. And, we save for college. You sound selfish. You bought too much of a house.