"Fully fund" college... how much?

[Anonymous]

We have three kids and goal is to save $200k for each.

[Anonymous]

One year out, I only have 80k saved, could cost us up to 80k/yr. We will spilt the 80k accross 4 years and shore up the difference out of pocket income. Don’t have a mortgage, we are trying to be have one year ahead so are have been putting away 5k/mo in a HYSA since may (this is on top of our 80k).

We hope to not have to touch the 80k and save that for our younger child.

[Anonymous]

Anonymous wrote:As someone who has worked a long time in admissions for a top 10 grad program, I’ve learned that private undergrad gives no advantage to kids looking to go to grad school. Maybe it does for kids in certain fields who don’t plan on grad school, but otherwise it was a completely wasted expense.

I don’t think anyone thinks private gives you a leg up when it comes to grad school. Kids don’t attend private for that reason Lolol!

[Anonymous]

Anonymous wrote:Serious question- why don’t people with high incomes just pay out of pocket for college expenses instead of running the risk of saving too much in a 529? I know 529’s can be transferred but what if your kids don’t have or want kids? So many variables.

So don't save the full amount. But the benefits of long term growth tax free is too huge to pass up. Also, you can transfer the money to other family members if you really need to and use it for trade school or CC as well. Most people with high incomes likely plan for sending their kids to college so why not save?

[Anonymous]

Even though we now make $300k hhi, that’s only from the past couple of years. We also have retirement, other kids and other expenses to think about. I can’t just easy add an extra $40k a year on top of that spending.

[Anonymous]

Anonymous wrote:We're assuming the most expensive in-state public in VA (W&M or UVA) at currently roughly 40k/yr total cost of attendance. Instead of projecting tuition growth, we just assume our investments in current dollars will match cost of attendance (so growth in tuition=growth in investments). We did this with our eldest (who ended up going to W&M), our middle child in HS looks on track too and our youngest is in MS and it seems like tuition growth has slowed down. We figure in saving at a consistent rate until age 21 since the cost of college happens over 4 years.

Our policy with our kids is that we will fully fund total cost of attendance at any in-state public. If they want to go out of state or private that costs more, they will need to come up with the difference--either through loans, work or merit awards.

UVA is $50k in state for business and STEM. Just FYI.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As someone who has worked a long time in admissions for a top 10 grad program, I’ve learned that private undergrad gives no advantage to kids looking to go to grad school. Maybe it does for kids in certain fields who don’t plan on grad school, but otherwise it was a completely wasted expense.

I don’t think anyone thinks private gives you a leg up when it comes to grad school. Kids don’t attend private for that reason Lolol!

Then why do they do it? It’s not uncommon for kids to apply to our grad program with six figures of undergraduate debt from a private school when a state school would have gotten them to the same spot for half. If you are rich I guess it’s fine but these kids aren’t.

[Anonymous]

I have a rising 12th grader. I still don’t know what numbers we’re looking at! Dream schools are $80k/year + extras (travel home, study abroad). Others are $50k/ year but there may be some merit aid. In state flagship is even less. We also don’t know whether some of the state flagships can be completed in 4 years. On the other hand, DC may get enough credits from AP classes at some schools to graduate in 3.5 years. Which means best case is 3.5x$30k= $105k. And worst case is $4x$90k=$360k. We have something in the middle in 529s and have stopped contributing for now, but are setting aside some money in other accounts in case we need to cash flow this pricier options. And if DC selects the least expensive option then we likely will give DC the option to use the remainder for grad school or transfer it to an IRA, or a combination of both.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who has worked a long time in admissions for a top 10 grad program, I’ve learned that private undergrad gives no advantage to kids looking to go to grad school. Maybe it does for kids in certain fields who don’t plan on grad school, but otherwise it was a completely wasted expense.

I don’t think anyone thinks private gives you a leg up when it comes to grad school. Kids don’t attend private for that reason Lolol!

Then why do they do it? It’s not uncommon for kids to apply to our grad program with six figures of undergraduate debt from a private school when a state school would have gotten them to the same spot for half. If you are rich I guess it’s fine but these kids aren’t.

I’m on A2C and I’ve literally never seen a kid say they are going to private because they think it will help them with grad school. Kids who are going to top private schools are often laser focused students.

My son is going to Duke next month. Why? Because he visited the school and absolutely loved it and got in. He also got in Uchicago, but hates the campus and location. He’s planning on majoring in math. Grad school hasn’t even crossed his mind. He did not get into UVA, and graduated the top of his class. Go figure got into Duke, Uchicago, and Michigan, but not UVA.

No he will not graduate with debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who has worked a long time in admissions for a top 10 grad program, I’ve learned that private undergrad gives no advantage to kids looking to go to grad school. Maybe it does for kids in certain fields who don’t plan on grad school, but otherwise it was a completely wasted expense.

I don’t think anyone thinks private gives you a leg up when it comes to grad school. Kids don’t attend private for that reason Lolol!

Then why do they do it? It’s not uncommon for kids to apply to our grad program with six figures of undergraduate debt from a private school when a state school would have gotten them to the same spot for half. If you are rich I guess it’s fine but these kids aren’t.

I’m on A2C and I’ve literally never seen a kid say they are going to private because they think it will help them with grad school. Kids who are going to top private schools are often laser focused students.

My son is going to Duke next month. Why? Because he visited the school and absolutely loved it and got in. He also got in Uchicago, but hates the campus and location. He’s planning on majoring in math. Grad school hasn’t even crossed his mind. He did not get into UVA, and graduated the top of his class. Go figure got into Duke, Uchicago, and Michigan, but not UVA.

No he will not graduate with debt.

You are rich and the cost difference is nothing to you. That doesn't mean its a greater value.

[Anonymous]

Anonymous wrote:As someone who has worked a long time in admissions to for a top 10 grad program, I’ve learned that private undergrad gives no advantage to kids looking to go to grad school. Maybe it does for kids in certain fields who don’t plan on grad school, but otherwise it was a completely wasted expense.

It’s worth it for a better education.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As someone who has worked a long time in admissions to for a top 10 grad program, I’ve learned that private undergrad gives no advantage to kids looking to go to grad school. Maybe it does for kids in certain fields who don’t plan on grad school, but otherwise it was a completely wasted expense.

It’s worth it for a better education.

I understand that you really need to believe that’s true.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As someone who has worked a long time in admissions to for a top 10 grad program, I’ve learned that private undergrad gives no advantage to kids looking to go to grad school. Maybe it does for kids in certain fields who don’t plan on grad school, but otherwise it was a completely wasted expense.

It’s worth it for a better education.

What makes you think private undergrad is "a better education" than public? (I went to an Ivy League undergrad but don't particularly think that makes me better educated than anyone else.)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who has worked a long time in admissions to for a top 10 grad program, I’ve learned that private undergrad gives no advantage to kids looking to go to grad school. Maybe it does for kids in certain fields who don’t plan on grad school, but otherwise it was a completely wasted expense.

It’s worth it for a better education.

I understand that you really need to believe that’s true.

DP: And clearly you really need to believe that it's not. People choose the education that fits with their needs and wants. Some may be misguided, some not. Graduation rates tend to be better at private schools overall--even controlling for demographic factors and income. So most of the biggest ROI comes with graduation and most of the lowest ROI comes with spending on education but not graduating. Likewise, smaller private schools tend not to be a protective of majors that are lucrative--major is a better predictor for income than alma mater. My kid went to a good in-state public but then couldn't cut it to get into their business or CS schools--his preferred majors. Had he gone to an LAC with CS there might have been no cut or he might have had better grades with the better support of first year students. It's worked out fine, but there are a variety of reasons to choose a variety of schools.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As someone who has worked a long time in admissions for a top 10 grad program, I’ve learned that private undergrad gives no advantage to kids looking to go to grad school. Maybe it does for kids in certain fields who don’t plan on grad school, but otherwise it was a completely wasted expense.

I don’t think anyone thinks private gives you a leg up when it comes to grad school. Kids don’t attend private for that reason Lolol!

Then why do they do it? It’s not uncommon for kids to apply to our grad program with six figures of undergraduate debt from a private school when a state school would have gotten them to the same spot for half. If you are rich I guess it’s fine but these kids aren’t.

I’m on A2C and I’ve literally never seen a kid say they are going to private because they think it will help them with grad school. Kids who are going to top private schools are often laser focused students.

My son is going to Duke next month. Why? Because he visited the school and absolutely loved it and got in. He also got in Uchicago, but hates the campus and location. He’s planning on majoring in math. Grad school hasn’t even crossed his mind. He did not get into UVA, and graduated the top of his class. Go figure got into Duke, Uchicago, and Michigan, but not UVA.

No he will not graduate with debt.

You are rich and the cost difference is nothing to you. That doesn't mean its a greater value.

I am a Duke grad. The education was excellent. I paid for it entirely on my own via athletic scholarship. My poor single mother was not a student but wanted me to aim high. Not sure I liked the school socially - but the academics were excellent - all that really matters. Not sure what is communicated to students today. My honors adviser repeatedly informed me that learning is all about sustaining ego damage - no quest for safe spaces. No safe spaces in athletics either and found an adjustment in the world was not as ruthless as my athletic life. I can see why your son wants to go to Duke. I used to think while riding the East West campus bus that I was the luckiest guy in the world despite coming from poverty. Of all of the top universities in the country, Duke has at the same time the most remarkable and troubling history. Washington Duke was a prisoner of war and walked home to Durham so as not to spend the 5 dollar coin Lincoln have to POW’s. That coin started the tobacco business. Stanford certainly was notorious in his financing of the Central Pacific, but the Dukes have a remarkable and imperfect history.

I paid for two Princeton educations for my two kids. About 70 percent saved - the other 30 percent out of operating funds, including cars for them, travel and clothes. They worked for their own money and held up their end of the bargain. Contrary to the statement above, we are not rich but reasonably well off. I have been investing since age 22, and just don’t like debt and leading a modest life gave us a lot of freedom in terms of college. Buying only a house we could afford with a 15 year mortgage - no fancy cars - these things make a huge difference. I disagree with Dave Ramsey on a majority of topics, including his religious bent, but one thing he is right about is to avoid debt. Not everyone can do it but not having any debt for 15 years just gives me an entirely different outlook on life. By the way not sure Princeton was a good value but wanted to pay it forward after being the first to go to college and kept a long term promise to the kids that they could go wherever they wanted. This mattered to me greatly. Retirement is in decent shape but want more before I retire - although could do so now.