Does everyone on here with kids applying to top 50 schools really have the $80K per year to spend?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think people who don't go to Europe for 20 years so their kids can go to Middlebury are the parents who care THE MOST about the bumper sticker. I don't find it inspirational.

+1.

Agreed. This type of thing is just really depressing. Worshipping at the alter of education.

It would be one thing if the $80K education was a guarantee of anything. But it's not. The chances are overwhelming that this kid will end up in the same position as the parents: a lifetime of deprivation for 4 years of a $4K/week
crappy dorm room.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Funny you should ask this OP.

When I hit “submit payment” and a link to deduct $42,650 from our bank account last Tuesday- for ONE SEMESTER- I had the same thought. Who in their right mind really does this?

1) those with over $20MM in the bank, 2) those with paying grandpas

Nope. HHI $230, have been saving since the children were little (started with $210/month for maxium tax benefit, as our income went up we did a little but more, plus bonus money, etc). DC 1 got merit aid, so very inexpensive, will have funds leftover for grad school. DC 2, attending am over $80k per year private, will be a stretch for us, between 529 and cash flow - there will be nothing left for grad school, they will need to pay on their own.

And, we don't go abroad for vacation, drive 10+ year old cars until they die, etc). We've made education a priority

So that your kids can take budget vacations and drive beater cars while making education a priority for their kids too?

This is harsh but really worth talking about. how is paying $80K a year for school worth it in this scenario? Are you hoping that maybe your kid will break into the next income level and not repeat this cycle? The reality is that there is no guarantee that attending a $80k school will lead to ANY better income or standard of living than a $40k school.

it's just insanity that people like have fallen victim to the $80k trap. it's honestly really depressing.

Okay OP - you change it, and get back to us. We'll wait here......

Not OP. There are many of us that feel this way.

living a bare bones life for 20 years so your kid can attend a $80k school which guarantees nothing is depressing. Period.

I'm not rich by any means. I have enough in the 529 to send my kids to $80k schools. I don't feel like my life has been drab and bare bones for the past 20 years. I live in a good neighborhood, kids went to public schools, I've had three cars since 1997. We have very satisfactory family vacations. Maybe my expectations are low, but there's nothing I really want that I don't have.

Each state has a different aggregate contribution limit for each 529 account that typically falls between $235,000 and $550,000. What is your state's cap? 4-years of tuition at one of my kid's schools is $348k and over the cap allowed in 529 for our state.

The cap is on contributions, doesn’t include earnings

[Anonymous]

I was thinking the same thing; that colleges do not come with a guarantee. My son is starting college this week, and I hope he takes advantage of everything it has to offer to make this all worthwhile.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Funny you should ask this OP.

When I hit “submit payment” and a link to deduct $42,650 from our bank account last Tuesday- for ONE SEMESTER- I had the same thought. Who in their right mind really does this?

1) those with over $20MM in the bank, 2) those with paying grandpas

Nope. HHI $230, have been saving since the children were little (started with $210/month for maxium tax benefit, as our income went up we did a little but more, plus bonus money, etc). DC 1 got merit aid, so very inexpensive, will have funds leftover for grad school. DC 2, attending am over $80k per year private, will be a stretch for us, between 529 and cash flow - there will be nothing left for grad school, they will need to pay on their own.

And, we don't go abroad for vacation, drive 10+ year old cars until they die, etc). We've made education a priority

So that your kids can take budget vacations and drive beater cars while making education a priority for their kids too?

This is harsh but really worth talking about. how is paying $80K a year for school worth it in this scenario? Are you hoping that maybe your kid will break into the next income level and not repeat this cycle? The reality is that there is no guarantee that attending a $80k school will lead to ANY better income or standard of living than a $40k school.

it's just insanity that people like have fallen victim to the $80k trap. it's honestly really depressing.

Okay OP - you change it, and get back to us. We'll wait here......

Not OP. There are many of us that feel this way.

living a bare bones life for 20 years so your kid can attend a $80k school which guarantees nothing is depressing. Period.

I'm not rich by any means. I have enough in the 529 to send my kids to $80k schools. I don't feel like my life has been drab and bare bones for the past 20 years. I live in a good neighborhood, kids went to public schools, I've had three cars since 1997. We have very satisfactory family vacations. Maybe my expectations are low, but there's nothing I really want that I don't have.

Each state has a different aggregate contribution limit for each 529 account that typically falls between $235,000 and $550,000. What is your state's cap? 4-years of tuition at one of my kid's schools is $348k and over the cap allowed in 529 for our state.

It’s Virginia so $550k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Funny you should ask this OP.

When I hit “submit payment” and a link to deduct $42,650 from our bank account last Tuesday- for ONE SEMESTER- I had the same thought. Who in their right mind really does this?

1) those with over $20MM in the bank, 2) those with paying grandpas

Nope. HHI $230, have been saving since the children were little (started with $210/month for maxium tax benefit, as our income went up we did a little but more, plus bonus money, etc). DC 1 got merit aid, so very inexpensive, will have funds leftover for grad school. DC 2, attending am over $80k per year private, will be a stretch for us, between 529 and cash flow - there will be nothing left for grad school, they will need to pay on their own.

And, we don't go abroad for vacation, drive 10+ year old cars until they die, etc). We've made education a priority

So that your kids can take budget vacations and drive beater cars while making education a priority for their kids too?

This is harsh but really worth talking about. how is paying $80K a year for school worth it in this scenario? Are you hoping that maybe your kid will break into the next income level and not repeat this cycle? The reality is that there is no guarantee that attending a $80k school will lead to ANY better income or standard of living than a $40k school.

it's just insanity that people like have fallen victim to the $80k trap. it's honestly really depressing.

Okay OP - you change it, and get back to us. We'll wait here......

wHat's to change? send your kids to schools you can afford. It's really simple. Look outside the T50 and there is plenty of merit for decent students, more for excellent students. (hint for excellent students there is merit within the T50, it does exist in the 25-50 range)

My 26ACT/3.4UW/no AP/"average kid" attended a T100 school with 35% merit award. They also had offers at 2 other similarly ranked schools with similar merit. Paid only $40K/year. Had offer at T120 where cost was only $30K/year. Got all of that without us chasing merit---we didn't need it. Could have gone to 3 schools in-state (not the flagship but the next best 3) for less than $20K/year. Also, my kid attended college with some really smart kids---plenty of top students who chose to go somewhere with great merit, plenty of "strivers" as my kid would call them (my kid is a B's are excellent grades and C's get degrees mentality).

That kid has graduated, started a job at a great company 2 weeks after graduation and is excelling in their career one year in. First year raise was in the top 25% of first year employees. Not to shabby

C's get degrees?

Is this actually a thing??

Yes--why not? Once you get your first job, nobody cares what your GPA was in college. Now, if you have a 2.5 gpa you may have trouble getting internships and getting that first job---you will have to work harder. But 1-2 years in, try switching jobs and what a company cares about is your references and what you do on the job. Nobody gives a shit about your grade in Accounting 101 or Business 300.

Point was my kid did decent in college, but did not stress if they did not have all As. They graduated with a 3.4 overall, and would have had a 3.5/3.6 had they started in their final major---freshman year in pre-med did a nice job of tanking their gpa. They had no internships due to covid. Yet they are at an excellent company with a 3.4 gpa, doing very well in their job and high achiever at the job. Nobody cares whether they got a 2.5 or a 3.5 or a 4.0 gpa in college---they care about what you do daily on the job.
And yes, they work with others who had lower gpas in college who are excellent employees.

Seems C's at Harvard would be very different than C's at a college 2+ tiers down, at least at my company.

I helped a friend's son get a job with my company after he graduated from UGA last year. They did not ask to see his transcript. They only knew his gpa because he put it on his resume. Last time I did any hiring all I cared about was "has degree in relevant subject".

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here.
I get that $90K is a rounding error for some on here and two weeks' salaries for others.

But I bet that for most of us, $360K is not an insignificant amount.
And yet we're fighting each other for the privilege of paying it.

We are truly idiots for playing into this. Excuse my insult as I include myself in that group.

PP here. Yes we are. And what, exactly, are we getting for these dollars I ask myself as we work through another move in?

A nice campus with dorms that are old and need renovations. Food that is mediocre at best according to DC. Staff, staff, staff and more administrators.

As a consumer then - What are the very best options where you get the most bang for your money?
Please someone provide a link to that list

This is the right question to ask.

Which schools are providing the most resources, the best extras, that make the time at the University worth it? However, you measure… Whether that’s in lifetime earnings potential , or in other ways like renovated dorms with amazing student centric or focused substantive resources/ platforms, and fantastic food.

I’m not interested in paying more for amenities like renovated dorms, student gyms and fancy food. I will pay more for a small number of schools with superior education (MIT, Caltech) or significant prestige (Harvard, Princeton, Yale). Other than those it is one of our fabulous in state VA colleges. Full pay to most colleges is just a waste.

Then take MIT off your list. Kendall Square in Cambridge will soon be MIT Square. They have been building massive buildings over the last few years including a Music building. Not a music theatre, a music building. They have a beautiful gym , new student center focusing on healthy eating and other activities. New dorms interconnected with each building. I can’t imagine what they are spending.

The answer is: they are spending your retirement money, the money you could have used to pay off your mortgage, or the money your kid had to borrow and painfully repay. We are all indentured servants helping our lord to build fancy castles on his estate. Yay!

Who here would still happily attend MIT if it cost half as much but didn't have a new music building, a new gym, and a new student center? Probably everybody.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here.
I get that $90K is a rounding error for some on here and two weeks' salaries for others.

But I bet that for most of us, $360K is not an insignificant amount.
And yet we're fighting each other for the privilege of paying it.

We are truly idiots for playing into this. Excuse my insult as I include myself in that group.

PP here. Yes we are. And what, exactly, are we getting for these dollars I ask myself as we work through another move in?

A nice campus with dorms that are old and need renovations. Food that is mediocre at best according to DC. Staff, staff, staff and more administrators.

As a consumer then - What are the very best options where you get the most bang for your money?
Please someone provide a link to that list

This is the right question to ask.

Which schools are providing the most resources, the best extras, that make the time at the University worth it? However, you measure… Whether that’s in lifetime earnings potential , or in other ways like renovated dorms with amazing student centric or focused substantive resources/ platforms, and fantastic food.

I’m not interested in paying more for amenities like renovated dorms, student gyms and fancy food. I will pay more for a small number of schools with superior education (MIT, Caltech) or significant prestige (Harvard, Princeton, Yale). Other than those it is one of our fabulous in state VA colleges. Full pay to most colleges is just a waste.

Then take MIT off your list. Kendall Square in Cambridge will soon be MIT Square. They have been building massive buildings over the last few years including a Music building. Not a music theatre, a music building. They have a beautiful gym , new student center focusing on healthy eating and other activities. New dorms interconnected with each building. I can’t imagine what they are spending.

The answer is: they are spending your retirement money, the money you could have used to pay off your mortgage, or the money your kid had to borrow and painfully repay. We are all indentured servants helping our lord to build fancy castles on his estate. Yay!

Who here would still happily attend MIT if it cost half as much but didn't have a new music building, a new gym, and a new student center? Probably everybody.

I really do not understand the manic tangents this poster goes on about - I can’t be the only one.

[Anonymous]

These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here.
I get that $90K is a rounding error for some on here and two weeks' salaries for others.

But I bet that for most of us, $360K is not an insignificant amount.
And yet we're fighting each other for the privilege of paying it.

We are truly idiots for playing into this. Excuse my insult as I include myself in that group.

OP, you had many chances to get there with so little money. When Netflix raised their DVD monthly rental from $7 to $11, it was time to buy Netflix stock. When Apple came out with Iphone, you still had several years to buy the stock to get to $360k. When you were shopping on Amazon, you should have been buying the stock. All in all, ca $30k in any one of them, would have taken you there.
There are so many other companies that were clearly going to do well.
I started really late like in 2020 because of work and visa problems.Almost 20 years down the drain, and I still made it. My older one doesn't want me pay that much for college and wants to go to community college. Younger one is about to get $300k, but outside of 529 ofcourse. Younger DC has 10 years til college. We were never high earners. We had to make money work for us even if we knew nothing about it. Well, almost nothing. It's extremely good time to be in the market and/or enter the market now to forever. Not a financial advice.

First of all, not everyone is a savvy investor. And I'll go further than not many people know much about investing at all. So good for you? But you're expected a tremendous amount of financial know-all for most people. I grew up pretty poor and I can tell you I didn't have any sort of "investing" until I was nearly 30. Partly due to my debt (school) to income ratio and partly due to just not knowing.

Second, you imply that people should give up any sort of luxury, however small, to fund college. And I fundamentally disagree with that. Colleges are overpriced. Loans are predatory. And yet, despite what we say about "you can do well at any college" there aer many that will only hire from ivies, top tiers, etc. I saw that first hand in my own line of work. So people have valid reasons to want those schools.

Where did you work that would only hire from "ivies, top tiers, etc"? Because there really are not many areas that are like that. People do NOT have valid reasons to want those schools. There are literally only ~50-60K freshman matriculating at T25 schools each year. Yet millions of people are happy, succesful in their careers. Do the math, majority of them did not attend T25 schools.

[Anonymous]

Anonymous wrote:OP, yes, I have a kid in college and am paying that kind of huge bill every year. But the real sticker shock was when I just looked at med/dental/law school. The fourth year of dental was $130,000! A bunch of law schools were $110,000. We can manage undergrad for two kids (we are two fed workers), but the next part is going to be extremely difficult. Hopefully both kids won’t pick 3-4 year professional schools!

Why are you even considering paying for grad school for your kids?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Funny you should ask this OP.

When I hit “submit payment” and a link to deduct $42,650 from our bank account last Tuesday- for ONE SEMESTER- I had the same thought. Who in their right mind really does this?

1) those with over $20MM in the bank, 2) those with paying grandpas

Nope. HHI $230, have been saving since the children were little (started with $210/month for maxium tax benefit, as our income went up we did a little but more, plus bonus money, etc). DC 1 got merit aid, so very inexpensive, will have funds leftover for grad school. DC 2, attending am over $80k per year private, will be a stretch for us, between 529 and cash flow - there will be nothing left for grad school, they will need to pay on their own.

And, we don't go abroad for vacation, drive 10+ year old cars until they die, etc). We've made education a priority

So that your kids can take budget vacations and drive beater cars while making education a priority for their kids too?

This is harsh but really worth talking about. how is paying $80K a year for school worth it in this scenario? Are you hoping that maybe your kid will break into the next income level and not repeat this cycle? The reality is that there is no guarantee that attending a $80k school will lead to ANY better income or standard of living than a $40k school.

it's just insanity that people like have fallen victim to the $80k trap. it's honestly really depressing.

Okay OP - you change it, and get back to us. We'll wait here......

wHat's to change? send your kids to schools you can afford. It's really simple. Look outside the T50 and there is plenty of merit for decent students, more for excellent students. (hint for excellent students there is merit within the T50, it does exist in the 25-50 range)

My 26ACT/3.4UW/no AP/"average kid" attended a T100 school with 35% merit award. They also had offers at 2 other similarly ranked schools with similar merit. Paid only $40K/year. Had offer at T120 where cost was only $30K/year. Got all of that without us chasing merit---we didn't need it. Could have gone to 3 schools in-state (not the flagship but the next best 3) for less than $20K/year. Also, my kid attended college with some really smart kids---plenty of top students who chose to go somewhere with great merit, plenty of "strivers" as my kid would call them (my kid is a B's are excellent grades and C's get degrees mentality).

That kid has graduated, started a job at a great company 2 weeks after graduation and is excelling in their career one year in. First year raise was in the top 25% of first year employees. Not to shabby

C's get degrees?

Is this actually a thing??

Yes--why not? Once you get your first job, nobody cares what your GPA was in college. Now, if you have a 2.5 gpa you may have trouble getting internships and getting that first job---you will have to work harder. But 1-2 years in, try switching jobs and what a company cares about is your references and what you do on the job. Nobody gives a shit about your grade in Accounting 101 or Business 300.

Point was my kid did decent in college, but did not stress if they did not have all As. They graduated with a 3.4 overall, and would have had a 3.5/3.6 had they started in their final major---freshman year in pre-med did a nice job of tanking their gpa. They had no internships due to covid. Yet they are at an excellent company with a 3.4 gpa, doing very well in their job and high achiever at the job. Nobody cares whether they got a 2.5 or a 3.5 or a 4.0 gpa in college---they care about what you do daily on the job.
And yes, they work with others who had lower gpas in college who are excellent employees.

Seems C's at Harvard would be very different than C's at a college 2+ tiers down, at least at my company.

I helped a friend's son get a job with my company after he graduated from UGA last year. They did not ask to see his transcript. They only knew his gpa because he put it on his resume. Last time I did any hiring all I cared about was "has degree in relevant subject".

+1 And/or has a degree with relevant work experience to be qualified for this job. Grades/GPA and where you got your degree largely do NOT matter. Once people realize that and focus on what matters their life gets easier. What matters is getting a degree from a decent school in the area of study that interests you and then getting internships/voluteer experience while in college. That is what gets you a job and started on your career.

[Anonymous]

Don't know about others but we have been cash flowing private schools for years and are fully prepared to do so through college and beyond.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, yes, I have a kid in college and am paying that kind of huge bill every year. But the real sticker shock was when I just looked at med/dental/law school. The fourth year of dental was $130,000! A bunch of law schools were $110,000. We can manage undergrad for two kids (we are two fed workers), but the next part is going to be extremely difficult. Hopefully both kids won’t pick 3-4 year professional schools!

Why are you even considering paying for grad school for your kids?

Different poster and different circumstances but the answer for me is, so that my children have the best chance to remain in the economic class that they grew up in by having a debt free education.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, yes, I have a kid in college and am paying that kind of huge bill every year. But the real sticker shock was when I just looked at med/dental/law school. The fourth year of dental was $130,000! A bunch of law schools were $110,000. We can manage undergrad for two kids (we are two fed workers), but the next part is going to be extremely difficult. Hopefully both kids won’t pick 3-4 year professional schools!

Why are you even considering paying for grad school for your kids?

Not the PP, but we will pay for grad school if any of our kids want to attend. Then again we are UHNW so it seems like the smart thing to do---kids getting the money now to advance their career is much more useful than when we die and they are 50+

[Anonymous]

Anonymous wrote:These schools may not offer merit aid, but they all offer need based aid and many are need blind. What's the issue?

the issue is that many of us are donut families and can't afford $80k/year * 4 years * 2 kids. That would be $640k. That's more than the median price of a house in this country. And considering that so many people don't have enough for their retirement, it's stupid for people to not save for retirement over paying a stupid amount of money for the vast majority of colleges that are $80k per year.