When you can’t do it all, how to save for college?

[Anonymous]

Anonymous wrote:Save for retirement now, not college. You can't afford to pay for college at this point.

They can comfortably afford to pay for college - they need to cut back expenses and save.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Relying on an expected inheritance.

How does that work? What if the person doesn't die as "expected?"

I expect everyone to die at some point. Unless the rapture happens, in which case, we really won't care too much about college.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Save for retirement now, not college. You can't afford to pay for college at this point.

They can comfortably afford to pay for college - they need to cut back expenses and save.

"Comfortably afford" is one person's perspective.

They have a child still in day care. That child should be out by the time eldest goes to college. What they pay for day care will go part of the way in paying for an instate college.

Sensible answer is for the kids to go instate somewhere, whether in MD or VA. Parents will likely be able to lay at least 25k a year towards the cost of the college out of income and some savings, and kid funds the rest through working part time and loans. Or go to a community college for two years and transfer to a 4-year for junior/senior years. It's not exciting or the romance of going to a New England LAC, but it's a honest way of going to college. I'd try to avoid loans as much as possible but it's probably what's going to have to happen.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Relying on an expected inheritance.

How does that work? What if the person doesn't die as "expected?"

I expect everyone to die at some point. Unless the rapture happens, in which case, we really won't care too much about college.

'

What if you need the money before the person dies? You would take out loans and repay them after death?

What if they disinherit you for some reason?

What if they spend their money while they are alive?

What if they pull a Gates/Buffet and decide to donate it to charity?

It's so much better to plan and be self-reliant.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sorry, OP - this board is harsh when it comes to people with a $130-170K income (despite the rest of DCUM insisting that anyone making under $200K is poor in this area). We're in a similar situation but with 2 kids in elementary, a slightly lower income, and a lower mortgage because we bought in 2010. But it's still tight and we don't have enough in either retirement or college savings (although we will have a federal pension). We're looking at a less expensive house but the reality is that there is not much available at a lower price point that is in decent shape, with a decent commute, and in a decent school district. I don't have any answers, just sympathy.

Then something is off. We bough in 09, had incomes from $110-160K with a payment of $2K a month and we are comfortable. We a decent amount in the college fund, save for retirement and pay extra into the mortgage each month so I'm not sure how those of you are living but I'm missing something if its a struggle.

Amazing! Where did you find a home in the DMV for $400k? Congratulations!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry, OP - this board is harsh when it comes to people with a $130-170K income (despite the rest of DCUM insisting that anyone making under $200K is poor in this area). We're in a similar situation but with 2 kids in elementary, a slightly lower income, and a lower mortgage because we bought in 2010. But it's still tight and we don't have enough in either retirement or college savings (although we will have a federal pension). We're looking at a less expensive house but the reality is that there is not much available at a lower price point that is in decent shape, with a decent commute, and in a decent school district. I don't have any answers, just sympathy.

Then something is off. We bough in 09, had incomes from $110-160K with a payment of $2K a month and we are comfortable. We a decent amount in the college fund, save for retirement and pay extra into the mortgage each month so I'm not sure how those of you are living but I'm missing something if its a struggle.

Amazing! Where did you find a home in the DMV for $400k? Congratulations!

Many of us have homes under $400K in Montgomery County.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Save for retirement now, not college. You can't afford to pay for college at this point.

They can comfortably afford to pay for college - they need to cut back expenses and save.

"Comfortably afford" is one person's perspective.

They have a child still in day care. That child should be out by the time eldest goes to college. What they pay for day care will go part of the way in paying for an instate college.

Sensible answer is for the kids to go instate somewhere, whether in MD or VA. Parents will likely be able to lay at least 25k a year towards the cost of the college out of income and some savings, and kid funds the rest through working part time and loans. Or go to a community college for two years and transfer to a 4-year for junior/senior years. It's not exciting or the romance of going to a New England LAC, but it's a honest way of going to college. I'd try to avoid loans as much as possible but it's probably what's going to have to happen.

If you choose to have 3 kids, you are comfortable. If you choose not to save, then that's your choice. They are overspending not to put $250 or more away for each child. Their mortgage is way to high. If they had a lower mortgage they could easily put $300 a month away for each child. Its selfish to have three kids and refuse to pay for a state college. There is no excuse on that income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Save for retirement now, not college. You can't afford to pay for college at this point.

They can comfortably afford to pay for college - they need to cut back expenses and save.

"Comfortably afford" is one person's perspective.

They have a child still in day care. That child should be out by the time eldest goes to college. What they pay for day care will go part of the way in paying for an instate college.

Sensible answer is for the kids to go instate somewhere, whether in MD or VA. Parents will likely be able to lay at least 25k a year towards the cost of the college out of income and some savings, and kid funds the rest through working part time and loans. Or go to a community college for two years and transfer to a 4-year for junior/senior years. It's not exciting or the romance of going to a New England LAC, but it's a honest way of going to college. I'd try to avoid loans as much as possible but it's probably what's going to have to happen.

If you choose to have 3 kids, you are comfortable. If you choose not to save, then that's your choice. They are overspending not to put $250 or more away for each child. Their mortgage is way to high. If they had a lower mortgage they could easily put $300 a month away for each child. Its selfish to have three kids and refuse to pay for a state college. There is no excuse on that income.

Whoa. Judgmental, eh? I'm not going to scold people the way you do and start ranting how there is no excuse.

Everyone's circumstances are different. Even putting away 1k per month for the three kids only helps a bit, not pay, the total costs of college. OP and her husband will figure something out. Probably a combination of in state and some loans and paying out of income. It'll work. And it won't be the end of the world either.

[Anonymous]

You bought way, way too much house, as others have observed. Consider downsizing.

If you're not willing to do that, you just need to cut expenses elsewhere to the extent you can. But I would priorituze maxing those 401ks if I were you rather than saving more for college because it sounds like you're also behind in saving for retirement, and retirement should take priority over fully funding the cost of college. Your kids should also be aware that you will not be covering the full cost of their college and should be prepared to go in state or find scholarships.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Save for retirement now, not college. You can't afford to pay for college at this point.

They can comfortably afford to pay for college - they need to cut back expenses and save.

"Comfortably afford" is one person's perspective.

They have a child still in day care. That child should be out by the time eldest goes to college. What they pay for day care will go part of the way in paying for an instate college.

Sensible answer is for the kids to go instate somewhere, whether in MD or VA. Parents will likely be able to lay at least 25k a year towards the cost of the college out of income and some savings, and kid funds the rest through working part time and loans. Or go to a community college for two years and transfer to a 4-year for junior/senior years. It's not exciting or the romance of going to a New England LAC, but it's a honest way of going to college. I'd try to avoid loans as much as possible but it's probably what's going to have to happen.

This is the correct answer. Save what you can but get your kids used to the idea that they are going to an in-state school or CC. It's the practical solution and your kids will get just as good of an education as those people going into crazy debt.

[Anonymous]

As a spinoff of this thread, how much are people actually paying for college?

We make about $170K and hadn't saved very much for college - in large part because both kids (ages 20 and 15) went to private school (the older went just for high school, the younger went for middle and is now in high school).

Our kid goes to a "meets full demonstrated need" school and our bill for next year - including tuition and room/board is about $25K. Books, spending money, etc., are on top of that, which he pays from earnings from jobs during summer and at school.

We're paying that $25K pretty much out of current earnings. It's tight sometimes (especially paying about $15K for private school) but we make it work. Are there schools out there that are leaving families with big gaps between the Expected Family Contribution and the amount of financial aid they offer?

[Anonymous]

Once your child is out of daycare won't you have an extra $10K/year?

[Anonymous]

Anonymous wrote:Once your child is out of daycare won't you have an extra $10K/year?

Not all of us have kids in daycare.

[Anonymous]

As a single parent, I could not even start saving until my child was 7...and then began at $50 a month! Slowly, as my salary increased, my contribution increased. By the time she started college, I had saved about $75K. Luckily, she received multiple offers of merit scholarships at Tier 2 SLAC’s (which is where she wanted to go). My share is about $26K a year. I have been withdrawing that from the 529. I am continuing to save in hopes that the remaining need will be there by the time we teach senior year. If not, she will take out a modest loan.

I only have one child, but that is how we managed. Live within your means, and set realistic (not grandiose) goals about where she goes to school.

[Anonymous]

Anonymous wrote:As a spinoff of this thread, how much are people actually paying for college?

We make about $170K and hadn't saved very much for college - in large part because both kids (ages 20 and 15) went to private school (the older went just for high school, the younger went for middle and is now in high school).

Our kid goes to a "meets full demonstrated need" school and our bill for next year - including tuition and room/board is about $25K. Books, spending money, etc., are on top of that, which he pays from earnings from jobs during summer and at school.

We're paying that $25K pretty much out of current earnings. It's tight sometimes (especially paying about $15K for private school) but we make it work. Are there schools out there that are leaving families with big gaps between the Expected Family Contribution and the amount of financial aid they offer?

It doesn't matter what others are paying. It matters what you are paying. You should not expect financial aid if you put both kids in private and choose not to save. For college, your kids will have to take out loans.