Do most people pay for college out of pocket?

[Anonymous]

Anonymous wrote:Many regular kids don’t go to college at all. Trade school, military, jobs….

Of course but the parents of those kids are not usually on a college forum.

[Anonymous]

We saved for at least 10 years prior to college. Also got good financial aid. Had about 100k/kid saved and $30k/yr coa at T10

--regular person

[Anonymous]

We are upper middle class, so not insanely wealthy like doctors, investment bankers, and executives. But the price of tuition is baffling to me. I don’t know how anyone can pay for out-of-state or private schools. It’s pocket change for the wealthy, and if you are low-income enough you get aid. Middle class parents have it the worst.

I wish we lived in Florida or Georgia. Those schools are cheap and provide solid education!

[Anonymous]

Most do not.

I know someone well who works in the financial aid dept at a top5 liberal arts college and something like 60% of kids get aid and the average cost of attendance for this 60% is something like $13k.

I'm forgetting the exact figures but they are striking. The majority of kids at these schools are paying a fraction of the $85K sticker price.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, DCUM skews wealthy. You know this.

I know people who are not as wealthy, and they got aid and cashflow the rest to public universities.

These days I know no one who is middle class with kids in expensive schools. The ones I know who do go to expensive schools have deep pockets, or they are so low income, they get a ton of FA.

Our HHI is about $300K. We have enough for in state public and a bit more for 2 kids. We could swing $200K total without it impacting our retirement too much. I will not do loans.

Has financial aid dried up dramatically since people my age (40s) were going to college? We were a middle class family when I went to college (an income equivalent to $140K in 2024 dollars), and we paid less than half the sticker price for my expensive private college.

This is a genuine question I don't have college age kids yet.

There are more kids going to college today than even 20 years ago, and college costs have gone up faster than wages or inflation. There is only so much aid to go around.

When I went to college, tuition was like $600. I lived at home. I worked a $4/hour job and got pell grants. By the time I graduated, tuition had doubled. This was 30 years ago.

My sister's HHI is $140K. They got some aid at an expensive private, but not enough to float all four years out of pocket without loans, so their child went in state. They graduated a few years ago, and said that this was the smartest decision they ever made because they are seeing their friends who went to an expensive oos/private with loans, and they are struggling to pay off the loans while my niece/nephew is able to save so much that they are looking to buy their first place. They all make about the same.

My college tuition was the same, 600 (a semester I think?? It’s been awhile) at an SUNY an I remember hearing that the tuition increased dramatically a few years after I graduated. And I received TAP too.

[Anonymous]

PP here. Invested $272k over 18 years. All equity. Averaged $15k - $16k per month but very importantly made cash contributions on big market pullbacks. The average is misleading because biggest infusions were in 2008-2009. 2007 hardly put any money in at all. Always all equities because this is a long duration asset given the eventual use of funds. When my DC started college 2 years ago, the account had $700k in it. Have taken 4 withdrawals to pay tuition and room board and other expenses. It can be done. The key is to stay laser focused on outcome and think like an investor.

[Anonymous]

I have three kids all in private colleges (approx 85k per year each not including travel, ECs, etc)
At least one is on semester system so timing is a few weeks offset. Small wins.

It is so painful but yes, we pay as we go

[Anonymous]

PP above. Correction $15k - $16k on average per year.

[Anonymous]

Anonymous wrote:We are upper middle class, so not insanely wealthy like doctors, investment bankers, and executives. But the price of tuition is baffling to me. I don’t know how anyone can pay for out-of-state or private schools. It’s pocket change for the wealthy, and if you are low-income enough you get aid. Middle class parents have it the worst.

I wish we lived in Florida or Georgia. Those schools are cheap and provide solid education!

Middle class do just fine with financial aid at most private schools. You are likely upper class.

[Anonymous]

Anonymous wrote:PP here. Invested $272k over 18 years. All equity. Averaged $15k - $16k per month but very importantly made cash contributions on big market pullbacks. The average is misleading because biggest infusions were in 2008-2009. 2007 hardly put any money in at all. Always all equities because this is a long duration asset given the eventual use of funds. When my DC started college 2 years ago, the account had $700k in it. Have taken 4 withdrawals to pay tuition and room board and other expenses. It can be done. The key is to stay laser focused on outcome and think like an investor.

Similar here but on a much smaller scale.

[Anonymous]

I'm not sure what we are going to do. The calculators suggest that we are full pay at every school I've checked. We have been putting money into the 529, but it's not nearly aws large as some reports here. There is a chance for merit at some privates, but it's nuts to think we'd actually pay 90K a year. So far, those schools have felt like the best fit for our kid.

[Anonymous]

I cash flow most of my DS's tuition, apartment etc, but he pays for his food and fun expenses. He does have a small loan - 7500 for one year because I had a low cash period. I put $1700 a month into the 529, and make withdrawals when the payment date arrives and then I pay his $800 rent every month. So basically I'm paying $1700+800 = $2500 post tax per month for him to attend his in state school. I cannot wait to be done in a year! HHI of about 300K. We started with about 10K in his 529 and I always expected to cash flow most of it.

[Anonymous]

Anonymous wrote:Start a 529 when the kid is born. Make monthly contributions. 18 years later = >$500,000.

Yeah. We did that and have no where near that amount of money saved.

[Anonymous]

Anonymous wrote:Most do not.

I know someone well who works in the financial aid dept at a top5 liberal arts college and something like 60% of kids get aid and the average cost of attendance for this 60% is something like $13k.

I'm forgetting the exact figures but they are striking. The majority of kids at these schools are paying a fraction of the $85K sticker price.

? Majority of students don't go to these types of schools where they have such a large cash fund that they can give out a ton of aid.

[Anonymous]

I mean people are paying 40/50k cash for new cars, so you'd think they could dig deeper for college when they had 18 years to save?

We're UMC and will pay for instate. I hope it's not 90k by the time it's our turn.