Top Colleges Are Cheaper Than You Think (Unless You’re Rich)

[Anonymous]

Anonymous wrote:

We do have that self-control, and did save aggressively, and still can't pay $70K/year/kid. We have succeeded in saving enough to pay up to about $50K/year/kid (which is still too much IMO).

There is NO reason for tuitions to rise every year at rates that far outpace inflation. None.

What about tuitions that rise every year at the rate of increase health care premiums? Those are going up dramatically faster than inflation, and hit service industries particularly hard because you can't start slashing the number of employees and continue to provide the same level of service

[Anonymous]

Anonymous wrote:
We do have that self-control, and did save aggressively, and still can't pay $70K/year/kid. We have succeeded in saving enough to pay up to about $50K/year/kid (which is still too much IMO).

That is a great accomplishment, congrats! You can afford nearly any state school even OOS, and certainly will have plenty of change leftover if you go in state or choose a school that gives you a merit aid award!

[Anonymous]

It's not all doom and gloom for donut hole families.

We had HHI of 220k in 2016 (for current FAFSA form) w 2 kids in HS in VA. Senior D is receiving $11k in financial aid from UChicago plus $2k/yr for National Merit and another one time $2k from a local scholarship so our net cost this coming year is $60k. We have $90k saved in each kids 529 plan. So our out of pocket after withdrawing $25k will be $35k this coming year which is doable. I'm anticipating increased financial aid when both kids overlap in college for 2 years. We'll have to tighten our belts for the next few years (no new car purchases and less expensive vacations) but we anticipate being able to fund 2 private colleges without crippling our family finances. Granted it would be easier if 2nd D stayed in state but doable either way.

[Anonymous]

Anonymous wrote:It's not all doom and gloom for donut hole families.

We had HHI of 220k in 2016 (for current FAFSA form) w 2 kids in HS in VA. Senior D is receiving $11k in financial aid from UChicago plus $2k/yr for National Merit and another one time $2k from a local scholarship so our net cost this coming year is $60k. We have $90k saved in each kids 529 plan. So our out of pocket after withdrawing $25k will be $35k this coming year which is doable. I'm anticipating increased financial aid when both kids overlap in college for 2 years. We'll have to tighten our belts for the next few years (no new car purchases and less expensive vacations) but we anticipate being able to fund 2 private colleges without crippling our family finances. Granted it would be easier if 2nd D stayed in state but doable either way.

Is this supposed to be positive?

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's not all doom and gloom for donut hole families.

We had HHI of 220k in 2016 (for current FAFSA form) w 2 kids in HS in VA. Senior D is receiving $11k in financial aid from UChicago plus $2k/yr for National Merit and another one time $2k from a local scholarship so our net cost this coming year is $60k. We have $90k saved in each kids 529 plan. So our out of pocket after withdrawing $25k will be $35k this coming year which is doable. I'm anticipating increased financial aid when both kids overlap in college for 2 years. We'll have to tighten our belts for the next few years (no new car purchases and less expensive vacations) but we anticipate being able to fund 2 private colleges without crippling our family finances. Granted it would be easier if 2nd D stayed in state but doable either way.

Is this supposed to be positive?

Seriously! That sounds nuts to me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's not all doom and gloom for donut hole families.

We had HHI of 220k in 2016 (for current FAFSA form) w 2 kids in HS in VA. Senior D is receiving $11k in financial aid from UChicago plus $2k/yr for National Merit and another one time $2k from a local scholarship so our net cost this coming year is $60k. We have $90k saved in each kids 529 plan. So our out of pocket after withdrawing $25k will be $35k this coming year which is doable. I'm anticipating increased financial aid when both kids overlap in college for 2 years. We'll have to tighten our belts for the next few years (no new car purchases and less expensive vacations) but we anticipate being able to fund 2 private colleges without crippling our family finances. Granted it would be easier if 2nd D stayed in state but doable either way.

Is this supposed to be positive?

Seriously! That sounds nuts to me.

35k on a 220k income and assuming decent liquid savings doesn't seem to be "nuts".

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's not all doom and gloom for donut hole families.

We had HHI of 220k in 2016 (for current FAFSA form) w 2 kids in HS in VA. Senior D is receiving $11k in financial aid from UChicago plus $2k/yr for National Merit and another one time $2k from a local scholarship so our net cost this coming year is $60k. We have $90k saved in each kids 529 plan. So our out of pocket after withdrawing $25k will be $35k this coming year which is doable. I'm anticipating increased financial aid when both kids overlap in college for 2 years. We'll have to tighten our belts for the next few years (no new car purchases and less expensive vacations) but we anticipate being able to fund 2 private colleges without crippling our family finances. Granted it would be easier if 2nd D stayed in state but doable either way.

Is this supposed to be positive?

Seriously! That sounds nuts to me.

35k on a 220k income and assuming decent liquid savings doesn't seem to be "nuts".

I'm the poster w/220k HHI. Exactly. We are budgeting taking about $15k out of long term savings and paying $10k this summer and another $10k early next year. We will likely be able lower the out of pocket by keeping our D on our health insurance rather than paying for UChicago's and spending less than the budgeted $2k on books and $5.5k on personal expenses and travel. So our out of pocket may be closer to $30k.

[Anonymous]

I find it depressing that I am between affluent and very affluent, because they need to index this for zip codes or something

[Anonymous]

So I'm not really buying that this is as easy as they're making it out to be, even for the "very affluent" families.

They're making the assumption that you have significant cash on hand, plus a valuable investment portfolio, if you're in the very affluent category. If you have, as they assume, $150K in liquid cash and an investment portfolio worth $1.1 million (that you could presumably liquidate in part without a huge amount of trouble), then you can technically afford to pay full freight for a 4-year college ($280K). However, it would take a big chunk out of your investment portfolio and eat up all of your cash on hand.

I guess I'm not seeing how that would be merely "decidedly unpleasant." Seems like it would be downright painful, especially as you try to recover from that hit and save for retirement.

[Anonymous]

Anonymous wrote:So I'm not really buying that this is as easy as they're making it out to be, even for the "very affluent" families.

They're making the assumption that you have significant cash on hand, plus a valuable investment portfolio, if you're in the very affluent category. If you have, as they assume, $150K in liquid cash and an investment portfolio worth $1.1 million (that you could presumably liquidate in part without a huge amount of trouble), then you can technically afford to pay full freight for a 4-year college ($280K). However, it would take a big chunk out of your investment portfolio and eat up all of your cash on hand.

I guess I'm not seeing how that would be merely "decidedly unpleasant." Seems like it would be downright painful, especially as you try to recover from that hit and save for retirement.

So don’t attend that college and choose one that is cheaper or gives merit aid.

[Anonymous]

My parents paid nothing for my expensive Ivy education. Not a dime. I did work study and did a few small loans but otherwise it was all covered.

[Anonymous]

Anonymous wrote:

Anonymous wrote:So I'm not really buying that this is as easy as they're making it out to be, even for the "very affluent" families.

They're making the assumption that you have significant cash on hand, plus a valuable investment portfolio, if you're in the very affluent category. If you have, as they assume, $150K in liquid cash and an investment portfolio worth $1.1 million (that you could presumably liquidate in part without a huge amount of trouble), then you can technically afford to pay full freight for a 4-year college ($280K). However, it would take a big chunk out of your investment portfolio and eat up all of your cash on hand.

I guess I'm not seeing how that would be merely "decidedly unpleasant." Seems like it would be downright painful, especially as you try to recover from that hit and save for retirement.

So don’t attend that college and choose one that is cheaper or gives merit aid.

Not the point.

The article claims it is easy and doable. It is not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So I'm not really buying that this is as easy as they're making it out to be, even for the "very affluent" families.

They're making the assumption that you have significant cash on hand, plus a valuable investment portfolio, if you're in the very affluent category. If you have, as they assume, $150K in liquid cash and an investment portfolio worth $1.1 million (that you could presumably liquidate in part without a huge amount of trouble), then you can technically afford to pay full freight for a 4-year college ($280K). However, it would take a big chunk out of your investment portfolio and eat up all of your cash on hand.

I guess I'm not seeing how that would be merely "decidedly unpleasant." Seems like it would be downright painful, especially as you try to recover from that hit and save for retirement.

So don’t attend that college and choose one that is cheaper or gives merit aid.

Not the point.

The article claims it is easy and doable. It is not.

Exactly. The point of the article is about feasibility, not whether you should choose to pay for the more expensive college.

[Anonymous]

Aren’t some if not all Ivies no-loan?

[Anonymous]

I think no matter what this isn't sustainable. There's a reason that college degrees are becoming increasingly devalued.