Why do donut hole families

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is why we have strategically planned. All of us with professional white collar jobs and kids have quite likely been working for 20 years. That’s been plenty of time to plan properly. That’s plenty of time to drive down to a low mortgage. We are now sitting on a $1900/mo PITI and have modest college savings. We have quite enough cash flow to affford whatever college our kids want to go to based on solid financial choices and not saddling ourselves with a mortgage that morphs into an albatross. Even if my kid wanted to go to NYU, we have 90k saved and would simply need to come up with $5,416/mo which isn’t a big deal considering our mortgage is our only debt. Are we going to fund an 85k/yr school without significant aid just because “we can”? Helllll no. That’s just dumb. I don’t care if he gets in Stanford. If he can get in Stanford he can get in UVA which is just as good.

Congratulation, by definition you aren't donut hole if you can cashflow any college

As PP demonstrates, most the people who say they can't cash flow college on their income, have let their spending get out of hand. That's why the term is so obnoxious. How can someone making 200K tell someone making 100K that the extra income makes paying for college a hardship?

Many people "cashflow" with things like an equity line. And who are YOU to tell someone what their spending is/is not and what is a hardship? GTFOH with that. Lots of people on this thread have explained why they cannot ACTUALLY cashflow because of reasons having nothing to do with extravagant spending. You saying otherwise means absolutely nothing b/c you don't know their situations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My kids are young and DH and I got through all our education without debt, so I apologize if this sounds ignorant:
Would a family that has a mortgage-free house (say it is worth $2m) and well-funded retirement accounts (say $3m between them) but little money in 529 plans, a brokerage account or any other liquid accounts get aid if their HHI isn't very high (say one of the two parents retired early 5 years prior to their oldest starting college, bringing their HHI down to $150k)?

No---you own a $2M home and have retirement funded. Not likely to get much or any aid. And really you should not get any. You can save for your kids education if you can have a mortgage free $2M home.

Listen to yourself.

So they should have chosen to live in a shack just to qualify for FA? You're ridiculous.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My kids are young and DH and I got through all our education without debt, so I apologize if this sounds ignorant:
Would a family that has a mortgage-free house (say it is worth $2m) and well-funded retirement accounts (say $3m between them) but little money in 529 plans, a brokerage account or any other liquid accounts get aid if their HHI isn't very high (say one of the two parents retired early 5 years prior to their oldest starting college, bringing their HHI down to $150k)?

No---you own a $2M home and have retirement funded. Not likely to get much or any aid. And really you should not get any. You can save for your kids education if you can have a mortgage free $2M home.

Listen to yourself.

So they should have chosen to live in a shack just to qualify for FA? You're ridiculous.

No, they should simply not get aid. What they do next is up to them.

[Anonymous]

Anonymous wrote:This is why we have strategically planned. All of us with professional white collar jobs and kids have quite likely been working for 20 years. That’s been plenty of time to plan properly. That’s plenty of time to drive down to a low mortgage. We are now sitting on a $1900/mo PITI and have modest college savings. We have quite enough cash flow to affford whatever college our kids want to go to based on solid financial choices and not saddling ourselves with a mortgage that morphs into an albatross. Even if my kid wanted to go to NYU, we have 90k saved and would simply need to come up with $5,416/mo which isn’t a big deal considering our mortgage is our only debt. Are we going to fund an 85k/yr school without significant aid just because “we can”? Helllll no. That’s just dumb. I don’t care if he gets in Stanford. If he can get in Stanford he can get in UVA which is just as good.

We actually have a pretty low mortgage for this area, but have had some poor luck when it comes to medical expenses. Please don't judge those of us who you think don't have enough due to "poor choices." Although I guess in a way you're right- I prioritized my child's health so that someday he may make it to college...be grateful for your good luck every day because you do not know when misfortune will come for you...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is why we have strategically planned. All of us with professional white collar jobs and kids have quite likely been working for 20 years. That’s been plenty of time to plan properly. That’s plenty of time to drive down to a low mortgage. We are now sitting on a $1900/mo PITI and have modest college savings. We have quite enough cash flow to affford whatever college our kids want to go to based on solid financial choices and not saddling ourselves with a mortgage that morphs into an albatross. Even if my kid wanted to go to NYU, we have 90k saved and would simply need to come up with $5,416/mo which isn’t a big deal considering our mortgage is our only debt. Are we going to fund an 85k/yr school without significant aid just because “we can”? Helllll no. That’s just dumb. I don’t care if he gets in Stanford. If he can get in Stanford he can get in UVA which is just as good.

Congratulation, by definition you aren't donut hole if you can cashflow any college

As PP demonstrates, most the people who say they can't cash flow college on their income, have let their spending get out of hand. That's why the term is so obnoxious. How can someone making 200K tell someone making 100K that the extra income makes paying for college a hardship?

Many people "cashflow" with things like an equity line. And who are YOU to tell someone what their spending is/is not and what is a hardship? GTFOH with that. Lots of people on this thread have explained why they cannot ACTUALLY cashflow because of reasons having nothing to do with extravagant spending. You saying otherwise means absolutely nothing b/c you don't know their situations.

College is not meant to be “cash flowed”. It is a known expense 18-19 years in the making.

[Anonymous]

I went to college from 1999-2003 and have a toddler now. My parents definitely did not need to save for it for 18 years, nor did they need to base the number of kids they had on how many college tuitions could be afforded. Times have changed, and in this regard, I’m not certain these changes have been for the better.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is why we have strategically planned. All of us with professional white collar jobs and kids have quite likely been working for 20 years. That’s been plenty of time to plan properly. That’s plenty of time to drive down to a low mortgage. We are now sitting on a $1900/mo PITI and have modest college savings. We have quite enough cash flow to affford whatever college our kids want to go to based on solid financial choices and not saddling ourselves with a mortgage that morphs into an albatross. Even if my kid wanted to go to NYU, we have 90k saved and would simply need to come up with $5,416/mo which isn’t a big deal considering our mortgage is our only debt. Are we going to fund an 85k/yr school without significant aid just because “we can”? Helllll no. That’s just dumb. I don’t care if he gets in Stanford. If he can get in Stanford he can get in UVA which is just as good.

Congratulation, by definition you aren't donut hole if you can cashflow any college

As PP demonstrates, most the people who say they can't cash flow college on their income, have let their spending get out of hand. That's why the term is so obnoxious. How can someone making 200K tell someone making 100K that the extra income makes paying for college a hardship?

Many people "cashflow" with things like an equity line. And who are YOU to tell someone what their spending is/is not and what is a hardship? GTFOH with that. Lots of people on this thread have explained why they cannot ACTUALLY cashflow because of reasons having nothing to do with extravagant spending. You saying otherwise means absolutely nothing b/c you don't know their situations.

I'm telling people to do anything, except quit telling people who earn less and get some aid, that somehow they have it easier. There is no donut hole, just priorities to set.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is why we have strategically planned. All of us with professional white collar jobs and kids have quite likely been working for 20 years. That’s been plenty of time to plan properly. That’s plenty of time to drive down to a low mortgage. We are now sitting on a $1900/mo PITI and have modest college savings. We have quite enough cash flow to affford whatever college our kids want to go to based on solid financial choices and not saddling ourselves with a mortgage that morphs into an albatross. Even if my kid wanted to go to NYU, we have 90k saved and would simply need to come up with $5,416/mo which isn’t a big deal considering our mortgage is our only debt. Are we going to fund an 85k/yr school without significant aid just because “we can”? Helllll no. That’s just dumb. I don’t care if he gets in Stanford. If he can get in Stanford he can get in UVA which is just as good.

We actually have a pretty low mortgage for this area, but have had some poor luck when it comes to medical expenses. Please don't judge those of us who you think don't have enough due to "poor choices." Although I guess in a way you're right- I prioritized my child's health so that someday he may make it to college...be grateful for your good luck every day because you do not know when misfortune will come for you...

Babe I went to a cheap state school after transferring in 2 years of community college credits. You’re missing the forest through the trees. Can’t afford Harvard? No problem. Send your kids where you can afford it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is why we have strategically planned. All of us with professional white collar jobs and kids have quite likely been working for 20 years. That’s been plenty of time to plan properly. That’s plenty of time to drive down to a low mortgage. We are now sitting on a $1900/mo PITI and have modest college savings. We have quite enough cash flow to affford whatever college our kids want to go to based on solid financial choices and not saddling ourselves with a mortgage that morphs into an albatross. Even if my kid wanted to go to NYU, we have 90k saved and would simply need to come up with $5,416/mo which isn’t a big deal considering our mortgage is our only debt. Are we going to fund an 85k/yr school without significant aid just because “we can”? Helllll no. That’s just dumb. I don’t care if he gets in Stanford. If he can get in Stanford he can get in UVA which is just as good.

We actually have a pretty low mortgage for this area, but have had some poor luck when it comes to medical expenses. Please don't judge those of us who you think don't have enough due to "poor choices." Although I guess in a way you're right- I prioritized my child's health so that someday he may make it to college...be grateful for your good luck every day because you do not know when misfortune will come for you...

Babe I went to a cheap state school after transferring in 2 years of community college credits. You’re missing the forest through the trees. Can’t afford Harvard? No problem. Send your kids where you can afford it.

The more you post, the more you sound like a jerk. Maybe that's intentional? I feel bad for your child because you're seriously gonna be pissed if they don't get into Harvard after you've saved up 18 years for it, eh?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is why we have strategically planned. All of us with professional white collar jobs and kids have quite likely been working for 20 years. That’s been plenty of time to plan properly. That’s plenty of time to drive down to a low mortgage. We are now sitting on a $1900/mo PITI and have modest college savings. We have quite enough cash flow to affford whatever college our kids want to go to based on solid financial choices and not saddling ourselves with a mortgage that morphs into an albatross. Even if my kid wanted to go to NYU, we have 90k saved and would simply need to come up with $5,416/mo which isn’t a big deal considering our mortgage is our only debt. Are we going to fund an 85k/yr school without significant aid just because “we can”? Helllll no. That’s just dumb. I don’t care if he gets in Stanford. If he can get in Stanford he can get in UVA which is just as good.

We actually have a pretty low mortgage for this area, but have had some poor luck when it comes to medical expenses. Please don't judge those of us who you think don't have enough due to "poor choices." Although I guess in a way you're right- I prioritized my child's health so that someday he may make it to college...be grateful for your good luck every day because you do not know when misfortune will come for you...

Babe I went to a cheap state school after transferring in 2 years of community college credits. You’re missing the forest through the trees. Can’t afford Harvard? No problem. Send your kids where you can afford it.

The more you post, the more you sound like a jerk. Maybe that's intentional? I feel bad for your child because you're seriously gonna be pissed if they don't get into Harvard after you've saved up 18 years for it, eh?

I’m a DP then up the chain. Which is heartening. Most people in this thread don’t feel entitled to a college they can’t afford.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is why we have strategically planned. All of us with professional white collar jobs and kids have quite likely been working for 20 years. That’s been plenty of time to plan properly. That’s plenty of time to drive down to a low mortgage. We are now sitting on a $1900/mo PITI and have modest college savings. We have quite enough cash flow to affford whatever college our kids want to go to based on solid financial choices and not saddling ourselves with a mortgage that morphs into an albatross. Even if my kid wanted to go to NYU, we have 90k saved and would simply need to come up with $5,416/mo which isn’t a big deal considering our mortgage is our only debt. Are we going to fund an 85k/yr school without significant aid just because “we can”? Helllll no. That’s just dumb. I don’t care if he gets in Stanford. If he can get in Stanford he can get in UVA which is just as good.

We actually have a pretty low mortgage for this area, but have had some poor luck when it comes to medical expenses. Please don't judge those of us who you think don't have enough due to "poor choices." Although I guess in a way you're right- I prioritized my child's health so that someday he may make it to college...be grateful for your good luck every day because you do not know when misfortune will come for you...

Babe I went to a cheap state school after transferring in 2 years of community college credits. You’re missing the forest through the trees. Can’t afford Harvard? No problem. Send your kids where you can afford it.

The more you post, the more you sound like a jerk. Maybe that's intentional? I feel bad for your child because you're seriously gonna be pissed if they don't get into Harvard after you've saved up 18 years for it, eh?

I’m a DP then up the chain. Which is heartening. Most people in this thread don’t feel entitled to a college they can’t afford.

Exactly- if you're poor, didn't plan, or don't have smart kids to get the merit scholarships, community college is a very, very solid choice. Or there are literally thousands of options between MC and Harvard but you ned to get off your butt and research them.

[Anonymous]

Buying a purse or car that happens to be more expensive isn’t going to affect your job opportunities. That’s the difference.

[Anonymous]

Anonymous wrote:Complain about being a donut hole family? When there are thousands of colleges that could work between in state options and merit aid at lower tier privates and other oos public’s?l is it bc ivies and top 25 are not options?

I don't know any donut hole families that complain about being donut hole families. I do know families who are accustomed to family handouts, which is different.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My firm recruits kids out of undergrad for some roles at $130k salaries with high bonus potential. That’s only from top schools, though, but it is the most desirable line of service. For the other lines of service (recruited from other schools) you’re starting at more like $70-95k. Good luck switching to the most desirable LOS without an MBA from a top school.

That’s why the rat race to get into top schools persists.

+1 my experience as well

What is the most desirable line of service? Just curious, if someone is kind enough to answer.

I’m the poster who wrote about that. I am referring to management consulting as being the most desirable LOS versus tax, audit, IT audit or back office roles being less desirable. At firms that only do consulting, it would be consulting versus back office roles.

PowerPoints pay

[Anonymous]

I find it interesting that families who save no money and benefit from need based full rides and families with too much money to even worry about college cost, have the guts to judge families who work, save, pay and struggle for everything in their lives.