High income but 3 kids in college at once- financial aid

[Anonymous]

Anonymous wrote: We are pretty high income $475k/yr... We just started making this income and do not have enough saved to pay 80k a year x3 for 4 years (if they go to private universities).

How much was income before the recent bump?

[Anonymous]

Anonymous wrote:This is why you forego vacations and restaurants and Starbucks and salon coloring and manicures etc as needed once they are born to start saving for college. You had 18 years’ notice.

You are an asshole and you turn up on all these threads.
I'm not the OP but we're from Europe where extortionate school fees are not the norm. We came to the USA when our kids were small, not knowing if we'd be here a couple of years or many. We only became aware of the ridiculously high college fees when our kids were in grade school - so no, we've not had 18 years to save and actually I've never had a manicure and we don't go on vacations or to Starbucks. F U.

[Anonymous]

OP, I am not understanding why you can’t pay out of pocket at that salary, regardless of how long you have earned that. The difference between your current income and 3 private college tuitions leaves a huge remainder to live on.

[Anonymous]

On your 475k income you can pay out of pocket for two kids each year. (150-160k). Interest rates are low so take a second mortgage to pay for the third. Once the first two graduate, aggressively pay down the second mortgage, which you can do in two years. So it's six years of living simply and devoting most of your income to college bills. Once those six years are over, you're in the clear.

Is it worth it? Up to you to decide.

In your shoes, and with no other savings, I'd be looking at state universities and merit aid to cut costs as much as possible. I don't find the expensive private LACs worth the money. And I grew up in that environment (they're great schools, but not at $80k/yr).

[Anonymous]

Anonymous wrote:On your 475k income you can pay out of pocket for two kids each year. (150-160k). Interest rates are low so take a second mortgage to pay for the third. Once the first two graduate, aggressively pay down the second mortgage, which you can do in two years. So it's six years of living simply and devoting most of your income to college bills. Once those six years are over, you're in the clear.

Is it worth it? Up to you to decide.

In your shoes, and with no other savings, I'd be looking at state universities and merit aid to cut costs as much as possible. I don't find the expensive private LACs worth the money. And I grew up in that environment (they're great schools, but not at $80k/yr).

+1
Most 'productive' post yet on the topic.

[Anonymous]

Anonymous wrote:OP, I am not understanding why you can’t pay out of pocket at that salary, regardless of how long you have earned that. The difference between your current income and 3 private college tuitions leaves a huge remainder to live on.

Not really. A huge chunk of your money goes to taxes at this income. 3 private schools tuitions at $75K each a year is $225K (I’m assuming this based on your private college tuition assertion and the original post). It doesn’t leave much for mortgage, cars, and general living expenses. It is not feasible to pay all out of pocket, and definitely needs a savings plan and/or loans to accomplish.

[Anonymous]

Anonymous wrote:Even if you're willing to pay full price for 3 kids at privates ($240k) that leaves you with more than most people make left over. You're not getting aid, nor should you.

This. Oh my goodness. Do you know what you sound like. Pick the three most expensive tuitions, pay them all, and you still have more than most people. What the F do you mean you can’t afford it?!?!

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is why you forego vacations and restaurants and Starbucks and salon coloring and manicures etc as needed once they are born to start saving for college. You had 18 years’ notice.

You are an asshole and you turn up on all these threads.
I'm not the OP but we're from Europe where extortionate school fees are not the norm. We came to the USA when our kids were small, not knowing if we'd be here a couple of years or many. We only became aware of the ridiculously high college fees when our kids were in grade school - so no, we've not had 18 years to save and actually I've never had a manicure and we don't go on vacations or to Starbucks. F U.

Curious if after so many years in the USA and your kids arriving here little, if you are still considering the European universities for your kids.

[Anonymous]

If you just started earning that much you need to maintain your lifestyle at a lower level and pay cash with what you are currently earning. $80k x 3 kids = $240 (less than HALF your HHI!) - but you should be able to spend WAY less than that on college per year, even with 3 tuitions. Send them to the same school and make them share an apartment or something. If you can't live on what you make you've got bigger problems.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, I am not understanding why you can’t pay out of pocket at that salary, regardless of how long you have earned that. The difference between your current income and 3 private college tuitions leaves a huge remainder to live on.

Not really. A huge chunk of your money goes to taxes at this income. 3 private schools tuitions at $75K each a year is $225K (I’m assuming this based on your private college tuition assertion and the original post). It doesn’t leave much for mortgage, cars, and general living expenses. It is not feasible to pay all out of pocket, and definitely needs a savings plan and/or loans to accomplish.

They'd get a tax break for educational expenses. And once its just 2 of them at home they can live in a smaller house. No more need for the mcmansion they bought when their income shot up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is why you forego vacations and restaurants and Starbucks and salon coloring and manicures etc as needed once they are born to start saving for college. You had 18 years’ notice.

Haha 18 years of no Starbucks doesn’t make nearly enough for three college tuitions. This is the dumbest advice ever.

Starbucks, hair, nails but it depends on what you spend. Vacations, new cars, yes. It absolutely helps, especially if you have three kids and want to send them all to private.

I know people who make that much money and still don't have enough for private college. I haven't seen them doing any of the things first PP mentions.

You people just looking to judge.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, I am not understanding why you can’t pay out of pocket at that salary, regardless of how long you have earned that. The difference between your current income and 3 private college tuitions leaves a huge remainder to live on.

Not really. A huge chunk of your money goes to taxes at this income. 3 private schools tuitions at $75K each a year is $225K (I’m assuming this based on your private college tuition assertion and the original post). It doesn’t leave much for mortgage, cars, and general living expenses. It is not feasible to pay all out of pocket, and definitely needs a savings plan and/or loans to accomplish.

They'd get a tax break for educational expenses. And once its just 2 of them at home they can live in a smaller house. No more need for the mcmansion they bought when their income shot up.

What exactly tax break are they getting?
I think people who don’t have that income have no realization how many tax benefits are phased out, or worthless because of AMT or various other scenarios. Yes, it sounds like a lot of money. I think you’d be surprised that they probably aren’t living in the lap of luxury on that income in DC. No, no one feels sorry for them. But to just say pay $225+ out of pocket isn’t realistic.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is why you forego vacations and restaurants and Starbucks and salon coloring and manicures etc as needed once they are born to start saving for college. You had 18 years’ notice.

Haha 18 years of no Starbucks doesn’t make nearly enough for three college tuitions. This is the dumbest advice ever.

Starbucks, hair, nails but it depends on what you spend. Vacations, new cars, yes. It absolutely helps, especially if you have three kids and want to send them all to private.

I know people who make that much money and still don't have enough for private college. I haven't seen them doing any of the things first PP mentions.

You people just looking to judge.

How is that possible? High mortgage? Then downsize, move to cheaper area. Fancy cars? What are they spending on??

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, I am not understanding why you can’t pay out of pocket at that salary, regardless of how long you have earned that. The difference between your current income and 3 private college tuitions leaves a huge remainder to live on.

Not really. A huge chunk of your money goes to taxes at this income. 3 private schools tuitions at $75K each a year is $225K (I’m assuming this based on your private college tuition assertion and the original post). It doesn’t leave much for mortgage, cars, and general living expenses. It is not feasible to pay all out of pocket, and definitely needs a savings plan and/or loans to accomplish.

They'd get a tax break for educational expenses. And once its just 2 of them at home they can live in a smaller house. No more need for the mcmansion they bought when their income shot up.

Are you taking about tuition and fees deduction that’s no longer available or something else?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I had twins and a singleton in college at the same time for two full years, make ~$300 in HHI, and received no financial aid. I paid out of pocket, plus the kids all earned a degree of merit aid. All went to public universities and are doing well. Just a data point to consider.

Ha same bucket exactly. Twins and one two years behind. Let’s get Starbucks some time. What about letting them get loans and then paying them off over time.

Wish I knew you ladies! 3 yr old twins and 1 yr old Singleton.