Do most people pay for college out of pocket?

[Anonymous]

DS is 10, we have been saving what we can since he was born, I estimate we will end up with 100k by the time he goes to college. Grandpa is doing his own 529 for him as well and that will be about 50k (hopefully) by 2031. We are in a state with very strong in state options and now free community college. Ideally we have enough, but if not we will contribute a small amount each year and he can take loans for the rest - assuming he stays in state and they are reasonable. I am fine with him having some small loans, we will do what we can.

[Anonymous]

Anonymous wrote:We are upper middle class, so not insanely wealthy like doctors, investment bankers, and executives. But the price of tuition is baffling to me. I don’t know how anyone can pay for out-of-state or private schools. It’s pocket change for the wealthy, and if you are low-income enough you get aid. Middle class parents have it the worst.

I wish we lived in Florida or Georgia. Those schools are cheap and provide solid education!

You can feel free to move there if you want. Just do it at least 2 years before college

[Anonymous]

Most people don’t go to 4 year private colleges.

[Anonymous]

Yes.

[Anonymous]

Anonymous wrote:I cash flow most of my DS's tuition, apartment etc, but he pays for his food and fun expenses. He does have a small loan - 7500 for one year because I had a low cash period. I put $1700 a month into the 529, and make withdrawals when the payment date arrives and then I pay his $800 rent every month. So basically I'm paying $1700+800 = $2500 post tax per month for him to attend his in state school. I cannot wait to be done in a year! HHI of about 300K. We started with about 10K in his 529 and I always expected to cash flow most of it.

Why would you not save for college (in 529 or otherwise) if you are making $300K? Why not let it grow over time and pay less ultimately?

[Anonymous]

Anonymous wrote:I mean people are paying 40/50k cash for new cars, so you'd think they could dig deeper for college when they had 18 years to save?

We're UMC and will pay for instate. I hope it's not 90k by the time it's our turn.

Most people "paying 40-50K cash for new cars" also have most likely saved well for college. Everyone I know who pays cash for a car does so because they are debt free and well invested in the market

[Anonymous]

Anonymous wrote:

Anonymous wrote:I cash flow most of my DS's tuition, apartment etc, but he pays for his food and fun expenses. He does have a small loan - 7500 for one year because I had a low cash period. I put $1700 a month into the 529, and make withdrawals when the payment date arrives and then I pay his $800 rent every month. So basically I'm paying $1700+800 = $2500 post tax per month for him to attend his in state school. I cannot wait to be done in a year! HHI of about 300K. We started with about 10K in his 529 and I always expected to cash flow most of it.

That's what you pay for an infant per month at daycare.

So if you paid that for daycare, then you could have chosen to continue saving the same amount once they started K. And then you'd have the money for at least in state/moderate private

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are upper middle class, so not insanely wealthy like doctors, investment bankers, and executives. But the price of tuition is baffling to me. I don’t know how anyone can pay for out-of-state or private schools. It’s pocket change for the wealthy, and if you are low-income enough you get aid. Middle class parents have it the worst.

I wish we lived in Florida or Georgia. Those schools are cheap and provide solid education!

You can feel free to move there if you want. Just do it at least 2 years before college

Ironic someone identifying with being UMC, is grumbling about college when they can absolute pay for it.

[Anonymous]

Anonymous wrote:I paid cash.

It’s about $25K for one and $40K for another.

Our HHI is ~$300K - 2govt workers

Daycare > private > college

It never seemed too daunting. We just lived within those means.

At $300K, you could have comfortably saved. We make 1/2 what you do and saved plenty for a state college and grad school. It's your lifestyle choices.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I cash flow most of my DS's tuition, apartment etc, but he pays for his food and fun expenses. He does have a small loan - 7500 for one year because I had a low cash period. I put $1700 a month into the 529, and make withdrawals when the payment date arrives and then I pay his $800 rent every month. So basically I'm paying $1700+800 = $2500 post tax per month for him to attend his in state school. I cannot wait to be done in a year! HHI of about 300K. We started with about 10K in his 529 and I always expected to cash flow most of it.

That's what you pay for an infant per month at daycare.

So if you paid that for daycare, then you could have chosen to continue saving the same amount once they started K. And then you'd have the money for at least in state/moderate private

DP who is paying that for daycare and I may very well start doing that when they finally high elementary school. I’m sure I’ll find college daunting when we get there, but nothing can beat the sticker shock of the $3000/month we almost had to pay for my oldest when she was born (fortunately we got off the waitlist for a cheaper place).

[Anonymous]

Anonymous wrote:

Anonymous wrote:I paid cash.

It’s about $25K for one and $40K for another.

Our HHI is ~$300K - 2govt workers

Daycare > private > college

It never seemed too daunting. We just lived within those means.

At $300K, you could have comfortably saved. We make 1/2 what you do and saved plenty for a state college and grad school. It's your lifestyle choices.

But why should they save if just paying as they go along isn’t stressing them out?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There are millions of parents earning in the Top 3% and above. Millions. Executives, lawyers, SWE’s in the tech field, doctors, investment bankers.

or someone who may have been driving a beat up car just to save for ivy education for their kids

Like the rest of us are rolling around in 90k cars. Sticker price on my vehicle is less than one semester at ivy league.

But do you drive that $45K vehicle for 10-12 years? Or do you replace it every 5-6 years? For "donut hole families" that can make the difference in. what you can afford for your kid (that and other similar cost saving choices you make along the way)

I have one 14 year old car and one newer 30k car (because our ancient car died) car and that's a drop in the ocean of college costs for two kids if we were to pay full pay for a private college. It's really not comparable at all in terms of cost.

It's comparable in terms of mindset for saving for college (and retirement and other aspects of life). Many buy new cars every 4-5 years and that mindset carries over to most other aspects of life---they spend money they dont' need to spend and then wonder why they haven't been able to save.

Us personally, our last car loan was when we were 26 (Honda Civic). Drove that car for 8 years, once it was paid off (in 3 years) kept saving the monthly payment so that we had over $26 K in the "auto savings". Then sold the car for $5K and had $31K to put towards a new vehicle. We added in 6K and paid cash for a luxury vehicle. And never looked back. Kept that car for 11 years before we gave it to a family member.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I cash flow most of my DS's tuition, apartment etc, but he pays for his food and fun expenses. He does have a small loan - 7500 for one year because I had a low cash period. I put $1700 a month into the 529, and make withdrawals when the payment date arrives and then I pay his $800 rent every month. So basically I'm paying $1700+800 = $2500 post tax per month for him to attend his in state school. I cannot wait to be done in a year! HHI of about 300K. We started with about 10K in his 529 and I always expected to cash flow most of it.

That's what you pay for an infant per month at daycare.

So if you paid that for daycare, then you could have chosen to continue saving the same amount once they started K. And then you'd have the money for at least in state/moderate private

DP who is paying that for daycare and I may very well start doing that when they finally high elementary school. I’m sure I’ll find college daunting when we get there, but nothing can beat the sticker shock of the $3000/month we almost had to pay for my oldest when she was born (fortunately we got off the waitlist for a cheaper place).

You simply take what you pay for day care and put it in a college fund. Simple.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I will feel markedly like a chump when I write the first check for $84k and change in the summer. Ugh. Full pay over here.

This will be us. Feel like a total sucker when you read 65-70% of the school is getting aid and you are full pay.

My kid got into 2 Ivies, Pomona and Georgetown. He will likely go to one of those over WM & UVA. We did all the tours and for us it’s worth it. UVA is the largest by about 10k more students than most on hiss list.

We have about $140k in 529 for each kid. So will be pulling the rest out of our @sses.

Unless you have a extremely HHI, why would you pay $85-90K/year when you can attend UVA for ~$40K? especially when you don't have the money saved for college?
Very different story if you have $350K+ saved for college

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There are millions of parents earning in the Top 3% and above. Millions. Executives, lawyers, SWE’s in the tech field, doctors, investment bankers.

or someone who may have been driving a beat up car just to save for ivy education for their kids

Like the rest of us are rolling around in 90k cars. Sticker price on my vehicle is less than one semester at ivy league.

But do you drive that $45K vehicle for 10-12 years? Or do you replace it every 5-6 years? For "donut hole families" that can make the difference in. what you can afford for your kid (that and other similar cost saving choices you make along the way)

I have one 14 year old car and one newer 30k car (because our ancient car died) car and that's a drop in the ocean of college costs for two kids if we were to pay full pay for a private college. It's really not comparable at all in terms of cost.

It's comparable in terms of mindset for saving for college (and retirement and other aspects of life). Many buy new cars every 4-5 years and that mindset carries over to most other aspects of life---they spend money they dont' need to spend and then wonder why they haven't been able to save.

Us personally, our last car loan was when we were 26 (Honda Civic). Drove that car for 8 years, once it was paid off (in 3 years) kept saving the monthly payment so that we had over $26 K in the "auto savings". Then sold the car for $5K and had $31K to put towards a new vehicle. We added in 6K and paid cash for a luxury vehicle. And never looked back. Kept that car for 11 years before we gave it to a family member.

I have to laugh when you act like a car is 8 years old. We keep our cars 12-20 years (that one was totaled or we'd still have it). Norm for us is 16 years. We drive them till they are not safe or not worth fixing. And, then we buy new. However my last car was $50K as we could afford it in cash so I don't get how people scream poverty on more money. Our next car will be that much too but cash. I cannot even imagine keeping a car 8-11 years.