Fully funded college funds

[Anonymous]

Can someone define for me in today's dollar values what a fully funded college fund is?

[Anonymous]

I would say $250k for private undergrad.

[Anonymous]

No because you have to make some assumptions. Private or public might be the biggest. But you need to guess rate of return and college costs x years out.

[Anonymous]

Anonymous wrote:I would say $250k for private undergrad.

Agree.

[Anonymous]

Correct me if I'm wrong, but once the money goes into a 529 it has to be used for higher education expenses. If the withdrawal is used for any other purpose there are tax penalties. I know that funds can be transferred to others if need be. Is this correct?

[Anonymous]

Anonymous wrote:Correct me if I'm wrong, but once the money goes into a 529 it has to be used for higher education expenses. If the withdrawal is used for any other purpose there are tax penalties. I know that funds can be transferred to others if need be. Is this correct?

You are correct.

[Anonymous]

Current tuition for private colleges is about $60k/year. Ours has gone up $1-2k the last couple of years. So $250k is accurate. We were close to fully funded before DC1 started but it wasn't all in 529s. And we have used some current cash for tuition as well so there will be some leftover at the end. We plan to give that to DC for grad school.

[Anonymous]

Anonymous wrote:Can someone define for me in today's dollar values what a fully funded college fund is?

It completely depends on the time horizon. Fully funded when DC is starting college next year is different than fully funded for a first grader.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can someone define for me in today's dollar values what a fully funded college fund is?

It completely depends on the time horizon. Fully funded when DC is starting college next year is different than fully funded for a first grader.

Not really. I think assuming that college costs will increase in line with investment returns is probably in the right ballpark. So if it costs 250k now for 4 years at a private college, having 250k in an account now would cover it next year or in 10 years time, after you factor in the increase in costs and the return on your 529.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can someone define for me in today's dollar values what a fully funded college fund is?

It completely depends on the time horizon. Fully funded when DC is starting college next year is different than fully funded for a first grader.

Not really. I think assuming that college costs will increase in line with investment returns is probably in the right ballpark. So if it costs 250k now for 4 years at a private college, having 250k in an account now would cover it next year or in 10 years time, after you factor in the increase in costs and the return on your 529.

Yeah I think this is right. I have a 7-year old with $100K in his 529. I consider this fully funded for a state school but not enough for a private college. However, since I don't know where he'll end up, I'm saving the remainder of the $150K he'll need in more flexible, taxable vehicles.

[Anonymous]

Anonymous wrote:I would say $250k for private undergrad.

I would add another 100K for room/board/books/travel home etc.

[Anonymous]

Anonymous wrote:Current tuition for private colleges is about $60k/year. Ours has gone up $1-2k the last couple of years. So $250k is accurate. We were close to fully funded before DC1 started but it wasn't all in 529s. And we have used some current cash for tuition as well so there will be some leftover at the end. We plan to give that to DC for grad school.

Do you mean to say "tuition".

[Anonymous]

So what is fully funded for public?

[Anonymous]

Anonymous wrote:So what is fully funded for public?

In state or out of state?

[Anonymous]

In State.