I’m told I need to INVEST $259k over 18 years

[Anonymous]

Just like many businesses, colleges will at some point have to face the reality that they can't raise their costs so much indefinitely. So either they will have to cut their budgets or more students will flock to cheaper options. Unless you are a top 25 ranked school you just won't be able to justify 2-3X the cost.

[Anonymous]

Anonymous wrote:Just like many businesses, colleges will at some point have to face the reality that they can't raise their costs so much indefinitely. So either they will have to cut their budgets or more students will flock to cheaper options. Unless you are a top 25 ranked school you just won't be able to justify 2-3X the cost.

I think we're already at that point. As a previous poster already mentioned, there are very good in-state public schools in the region, with an all-in price tag of $20-25k per year. With the top privates at about 3x that price tag, many just aren't worth it. Harvard, yes. Harvey Mudd, not so sure.

I myself went to a private LAC. Its cost has nearly tripled since I went, and I'm only 37. It was $24k all-in my freshman year (2000), and is now $65k per year. That said, I didn't pay full freight -- received a small but significant merit based grant. I know this was somewhat common at privates when I went, and I assume it is at least as common if not more so today. My wife went to public university (out of state) on a full scholarship.

Our kids are young -- 3 and 1. There is roughly the same amount of time between when I went to school and now, as there will be between now and when they go to school. Will the costs at privates triple again? Is that sustainable?

All that said, we are aiming to save enough for the all-in costs of in-state public. We do an automatic $400/mo. contribution and then supplement with birthday gifts etc. to meet this goal. It makes me sad to not give my kids the same options as I had, but it just won't do to try to keep up with this runaway train of private schools. If the kids have their heart set on private, we will try to figure out the best solution for the whole family. Maybe they get some merit aid, as I did. Maybe they take on some student loans. Maybe we pitch in some outside of the 529 accounts. Maybe a combination of the above.

[Anonymous]

That's definitely not enough for private college. It's almost $80k a year now.

[Anonymous]

My college is now $74k/year. It was $28k all in my first year in 1999. It’s now more than my parents ever made in a year. I understand many colleges at the top of the rankings now have policies where families that make below a certain threshold pay nothing, but that’s not sustainable either as the tuition continues to increase so rapidily it becomes out of reach except for the top echelon and the poorest students.