High income but 3 kids in college at once- financial aid

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is why you forego vacations and restaurants and Starbucks and salon coloring and manicures etc as needed once they are born to start saving for college. You had 18 years’ notice.

Haha 18 years of no Starbucks doesn’t make nearly enough for three college tuitions. This is the dumbest advice ever.

Starbucks, hair, nails but it depends on what you spend. Vacations, new cars, yes. It absolutely helps, especially if you have three kids and want to send them all to private.

I know people who make that much money and still don't have enough for private college. I haven't seen them doing any of the things first PP mentions.

You people just looking to judge.

How is that possible? High mortgage? Then downsize, move to cheaper area. Fancy cars? What are they spending on??

Did you read it was a recent income spike? We are in a similar scenario from medical school loans. We’ve been “spending” to aggressively pay them off before our kids start college. My husband wasn’t on staff and making much until 32 years of age. We have a lot of catching up to do, and unfortunately it wasn’t on vacations. It’s very different from people who’ve been making it for several years. I agree - people are just looking to judge.

[Anonymous]

Assume they pay just under half in taxes, and they can pick colleges averaging to 60K per year (maybe student takes loans, gets merit, goes to state schools OOS which are <70K, etc). That leaves about 250-180 =70K for two people to live on after taxes. Isn’t that enough? And that’s only for the 2-3 Yrs that all 3 are in college simultaneously. That said, OP I’m sure your kids can find better deals if desired. State schools are generally excellent. And many privates have some merit aid.

[Anonymous]

If they pay just under half of 475 in taxes, say 225, that leaves 250 for living expenses and college costs, plus anything leftover going to retirement.

Their current living expense total depends on their mortgage payment.

There is definitely a way to work out full pay out of income x3, with loans at worst. If their mortgage is big, it'll pinch, but such is life.

[Anonymous]

Anonymous wrote:Assume they pay just under half in taxes, and they can pick colleges averaging to 60K per year (maybe student takes loans, gets merit, goes to state schools OOS which are <70K, etc). That leaves about 250-180 =70K for two people to live on after taxes. Isn’t that enough? And that’s only for the 2-3 Yrs that all 3 are in college simultaneously. That said, OP I’m sure your kids can find better deals if desired. State schools are generally excellent. And many privates have some merit aid.

Doubtful. My mortgage is 5k and I’m close to their income range. Most people making this much money will have a mortgage above 5k, perhaps 7-8. So literally zero money for utilities, transportation, food, etc

[Anonymous]

OP, I'm the poster who posted earlier about taking out a second mortgage to fund the third kid and then paying it down quickly once he/she graduates. I offered this advice because that's what I remember some families doing when I went to college 20 years ago. They made too much for financial aid but had several kids as well. They took a long term strategy to paying for college and it worked out. All these parents are now comfortably retired so it didn't hurt them to do it this way.

You do have leeway with your income. I second the advice to continue living well below your income and shovel ling the surplus savings into college. Pay for two out of pocket, which you can do, and finance the third one with cheap loans, paying it off as soon as you can once the others graduate. The years will fly by quickly. And then it'll be over.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Assume they pay just under half in taxes, and they can pick colleges averaging to 60K per year (maybe student takes loans, gets merit, goes to state schools OOS which are <70K, etc). That leaves about 250-180 =70K for two people to live on after taxes. Isn’t that enough? And that’s only for the 2-3 Yrs that all 3 are in college simultaneously. That said, OP I’m sure your kids can find better deals if desired. State schools are generally excellent. And many privates have some merit aid.

Doubtful. My mortgage is 5k and I’m close to their income range. Most people making this much money will have a mortgage above 5k, perhaps 7-8. So literally zero money for utilities, transportation, food, etc

This is helpful for understanding, but OP came into high income only recently so probably mortgage isn't as high. But once the three kids are in college, why do they need a 5K mortgage? Downsizing is an option. I agree that college costs are insane and out of control, but OP's situation is not a crisis and there are a number of tradeoffs that can be made comfortably.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Assume they pay just under half in taxes, and they can pick colleges averaging to 60K per year (maybe student takes loans, gets merit, goes to state schools OOS which are <70K, etc). That leaves about 250-180 =70K for two people to live on after taxes. Isn’t that enough? And that’s only for the 2-3 Yrs that all 3 are in college simultaneously. That said, OP I’m sure your kids can find better deals if desired. State schools are generally excellent. And many privates have some merit aid.

Doubtful. My mortgage is 5k and I’m close to their income range. Most people making this much money will have a mortgage above 5k, perhaps 7-8. So literally zero money for utilities, transportation, food, etc

This is helpful for understanding, but OP came into high income only recently so probably mortgage isn't as high. But once the three kids are in college, why do they need a 5K mortgage? Downsizing is an option. I agree that college costs are insane and out of control, but OP's situation is not a crisis and there are a number of tradeoffs that can be made comfortably.

Why do they NEED a $5K mortgage now - before their kids are in college?

[Anonymous]

I would never ever advise someone to get a second mortgage in order to pay for college.

Get loans for college, and help your kid pay them off. They are interest free while they are enrolled. Don't borrow against the house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, I am not understanding why you can’t pay out of pocket at that salary, regardless of how long you have earned that. The difference between your current income and 3 private college tuitions leaves a huge remainder to live on.

Not really. A huge chunk of your money goes to taxes at this income. 3 private schools tuitions at $75K each a year is $225K (I’m assuming this based on your private college tuition assertion and the original post). It doesn’t leave much for mortgage, cars, and general living expenses. It is not feasible to pay all out of pocket, and definitely needs a savings plan and/or loans to accomplish.

They'd get a tax break for educational expenses. And once its just 2 of them at home they can live in a smaller house. No more need for the mcmansion they bought when their income shot up.

What exactly tax break are they getting?
I think people who don’t have that income have no realization how many tax benefits are phased out, or worthless because of AMT or various other scenarios. Yes, it sounds like a lot of money. I think you’d be surprised that they probably aren’t living in the lap of luxury on that income in DC. No, no one feels sorry for them. But to just say pay $225+ out of pocket isn’t realistic.

OR they could be sensible and send their kids to state school, which are closer to $20-30k/kid and pay $100k give or take. They could make all the kids go to the same school and only pay for one apartment. They could....do MANY things that they CAN afford with an income of $475k. They are the ones saying it costs $80k/kid to send kids to private school. That's a CHOICE. Not a requirement.

I make $80k as a single mom. Once you add in child support I'm not even clearing $90k before you take the taxes I pay out of it. There are innumerable ways for them to make this work making nearly half a million per year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, I am not understanding why you can’t pay out of pocket at that salary, regardless of how long you have earned that. The difference between your current income and 3 private college tuitions leaves a huge remainder to live on.

Not really. A huge chunk of your money goes to taxes at this income. 3 private schools tuitions at $75K each a year is $225K (I’m assuming this based on your private college tuition assertion and the original post). It doesn’t leave much for mortgage, cars, and general living expenses. It is not feasible to pay all out of pocket, and definitely needs a savings plan and/or loans to accomplish.

They'd get a tax break for educational expenses. And once its just 2 of them at home they can live in a smaller house. No more need for the mcmansion they bought when their income shot up.

What exactly tax break are they getting?
I think people who don’t have that income have no realization how many tax benefits are phased out, or worthless because of AMT or various other scenarios. Yes, it sounds like a lot of money. I think you’d be surprised that they probably aren’t living in the lap of luxury on that income in DC. No, no one feels sorry for them. But to just say pay $225+ out of pocket isn’t realistic.

OR they could be sensible and send their kids to state school, which are closer to $20-30k/kid and pay $100k give or take. They could make all the kids go to the same school and only pay for one apartment. They could....do MANY things that they CAN afford with an income of $475k. They are the ones saying it costs $80k/kid to send kids to private school. That's a CHOICE. Not a requirement.

I make $80k as a single mom. Once you add in child support I'm not even clearing $90k before you take the taxes I pay out of it. There are innumerable ways for them to make this work making nearly half a million per year.

But that’s not the question they asked. They simply asked if they’d get aid. Likely to consider the cost of a more selective school versus a cheaper one. They are smart to get all the info first.
Quite honestly if you get aid, some of the Ivy Leagues can be similarly priced and I’d choose to send my kids there too. No harm in asking. Except on DCUM.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, I am not understanding why you can’t pay out of pocket at that salary, regardless of how long you have earned that. The difference between your current income and 3 private college tuitions leaves a huge remainder to live on.

Not really. A huge chunk of your money goes to taxes at this income. 3 private schools tuitions at $75K each a year is $225K (I’m assuming this based on your private college tuition assertion and the original post). It doesn’t leave much for mortgage, cars, and general living expenses. It is not feasible to pay all out of pocket, and definitely needs a savings plan and/or loans to accomplish.

They'd get a tax break for educational expenses. And once its just 2 of them at home they can live in a smaller house. No more need for the mcmansion they bought when their income shot up.

What exactly tax break are they getting?
I think people who don’t have that income have no realization how many tax benefits are phased out, or worthless because of AMT or various other scenarios. Yes, it sounds like a lot of money. I think you’d be surprised that they probably aren’t living in the lap of luxury on that income in DC. No, no one feels sorry for them. But to just say pay $225+ out of pocket isn’t realistic.

OR they could be sensible and send their kids to state school, which are closer to $20-30k/kid and pay $100k give or take. They could make all the kids go to the same school and only pay for one apartment. They could....do MANY things that they CAN afford with an income of $475k. They are the ones saying it costs $80k/kid to send kids to private school. That's a CHOICE. Not a requirement.

I make $80k as a single mom. Once you add in child support I'm not even clearing $90k before you take the taxes I pay out of it. There are innumerable ways for them to make this work making nearly half a million per year.

But that’s not the question they asked. They simply asked if they’d get aid. Likely to consider the cost of a more selective school versus a cheaper one. They are smart to get all the info first.
Quite honestly if you get aid, some of the Ivy Leagues can be similarly priced and I’d choose to send my kids there too. No harm in asking. Except on DCUM.

Asking on DCUM isn't "getting all the info" - they need to speak with a qualified financial advisor who understands the FAFSA and has all the information on their financial situation to get that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, I am not understanding why you can’t pay out of pocket at that salary, regardless of how long you have earned that. The difference between your current income and 3 private college tuitions leaves a huge remainder to live on.

Not really. A huge chunk of your money goes to taxes at this income. 3 private schools tuitions at $75K each a year is $225K (I’m assuming this based on your private college tuition assertion and the original post). It doesn’t leave much for mortgage, cars, and general living expenses. It is not feasible to pay all out of pocket, and definitely needs a savings plan and/or loans to accomplish.

They'd get a tax break for educational expenses. And once its just 2 of them at home they can live in a smaller house. No more need for the mcmansion they bought when their income shot up.

What exactly tax break are they getting?
I think people who don’t have that income have no realization how many tax benefits are phased out, or worthless because of AMT or various other scenarios. Yes, it sounds like a lot of money. I think you’d be surprised that they probably aren’t living in the lap of luxury on that income in DC. No, no one feels sorry for them. But to just say pay $225+ out of pocket isn’t realistic.

OR they could be sensible and send their kids to state school, which are closer to $20-30k/kid and pay $100k give or take. They could make all the kids go to the same school and only pay for one apartment. They could....do MANY things that they CAN afford with an income of $475k. They are the ones saying it costs $80k/kid to send kids to private school. That's a CHOICE. Not a requirement.

I make $80k as a single mom. Once you add in child support I'm not even clearing $90k before you take the taxes I pay out of it. There are innumerable ways for them to make this work making nearly half a million per year.

But that’s not the question they asked. They simply asked if they’d get aid. Likely to consider the cost of a more selective school versus a cheaper one. They are smart to get all the info first.
Quite honestly if you get aid, some of the Ivy Leagues can be similarly priced and I’d choose to send my kids there too. No harm in asking. Except on DCUM.

Asking on DCUM isn't "getting all the info" - they need to speak with a qualified financial advisor who understands the FAFSA and has all the information on their financial situation to get that.

No, but it’s a start. I suggested the intuition calculators. Sounds like you would suggest a financial advisor - also something else to consider. You gotta start somewhere.
What’s not helpful is the awful posters.

[Anonymous]

holy moly $475k is sooooo much money

[Anonymous]

OP - out of curiosity, I just entered our info into the Princeton net price calculator because I have heard that Princeton has amazing financial aid. We have an income of 365,000. If we had 3 kids in college at the same time (and I accounted for $150K in 529 plan) it found that as parents our would expected family contribution would be $36,300 (it also found the expected contribution for the fictional student at $3500) and that we would be qualified for 36K in financial aid.

I am not saying that your children will go to Princeton, but some of the elite colleges with large endowments have amazing financial aid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is why you forego vacations and restaurants and Starbucks and salon coloring and manicures etc as needed once they are born to start saving for college. You had 18 years’ notice.

Haha 18 years of no Starbucks doesn’t make nearly enough for three college tuitions. This is the dumbest advice ever.

Starbucks, hair, nails but it depends on what you spend. Vacations, new cars, yes. It absolutely helps, especially if you have three kids and want to send them all to private.

I know people who make that much money and still don't have enough for private college. I haven't seen them doing any of the things first PP mentions.

You people just looking to judge.

How is that possible? High mortgage? Then downsize, move to cheaper area. Fancy cars? What are they spending on??

Did you read it was a recent income spike? We are in a similar scenario from medical school loans. We’ve been “spending” to aggressively pay them off before our kids start college. My husband wasn’t on staff and making much until 32 years of age. We have a lot of catching up to do, and unfortunately it wasn’t on vacations. It’s very different from people who’ve been making it for several years. I agree - people are just looking to judge.

In your situation you did have the income but had high student loans. That is why you don't send your kids to private colleges if you cannot pay cash. On OP income they can comfortable send 3 kids to public colleges, no issue especially if they claim not to have had the money and have not changed their standard of living.