Just calculated projected college costs for my kid and almost vomited

[Anonymous]

She's 3. I used the Vanguard calculator and it came out with the following projected tuition costs:

Public in state: $196,681
Public out of state: $343,454
Less expensive private: $446,837
More expensive private (so the ones that now cost around $60K/year): $539,392

We make a good living and have one kid, but how the hell are we supposed to be able to afford these tuition costs?! To get to the public in-state option, and assuming no appreciation from investment options, we'd have to put away roughly $1100/month starting now. Well, we pay for preschool and have a mortgage, so that isn't happening at all easily. Saving for the most expensive private universities would require putting away $3000/month starting now.

Someone tell me how the hell people do this.

[Anonymous]

Anonymous wrote:She's 3. I used the Vanguard calculator and it came out with the following projected tuition costs:

Public in state: $196,681
Public out of state: $343,454
Less expensive private: $446,837
More expensive private (so the ones that now cost around $60K/year): $539,392

We make a good living and have one kid, but how the hell are we supposed to be able to afford these tuition costs?! To get to the public in-state option, and assuming no appreciation from investment options, we'd have to put away roughly $1100/month starting now. Well, we pay for preschool and have a mortgage, so that isn't happening at all easily. Saving for the most expensive private universities would require putting away $3000/month starting now.

Someone tell me how the hell people do this.

Some combination of savings, scholarships, loans and pay-as-you go.


Other alternatives including going the community college route for the first couple of years and transfering or going abroad.

[Anonymous]

We did the prepaid for our site college. Then are saving for room and board and graduate school in a 529. We will not even consider privates.

[Anonymous]

Yup, lock in tuition now, save aggressively and compound that interest

[Anonymous]

Anonymous wrote:We did the prepaid for our site college. Then are saving for room and board and graduate school in a 529. We will not even consider privates.

So with the prepaid option, what happens if your kid doesn't want to go there or doesn't get in? Do you lose the money?

[Anonymous]

Here's the good news: You are looking at this NOW, when you should, and you can plan. Good job!

Somehow people find a way and you will too. It's only the people that fail to plan that fail.

[Anonymous]

Anonymous wrote:She's 3. I used the Vanguard calculator and it came out with the following projected tuition costs:

Public in state: $196,681
Public out of state: $343,454
Less expensive private: $446,837
More expensive private (so the ones that now cost around $60K/year): $539,392

We make a good living and have one kid, but how the hell are we supposed to be able to afford these tuition costs?! To get to the public in-state option, and assuming no appreciation from investment options, we'd have to put away roughly $1100/month starting now. Well, we pay for preschool and have a mortgage, so that isn't happening at all easily. Saving for the most expensive private universities would require putting away $3000/month starting now.

Someone tell me how the hell people do this.

I could totally see this happening. Public instate with room and board is at least $25k/yr (even directional schools). It’s impossible to find a school with under $15k/yr total COA, bottom line.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We did the prepaid for our site college. Then are saving for room and board and graduate school in a 529. We will not even consider privates.

So with the prepaid option, what happens if your kid doesn't want to go there or doesn't get in? Do you lose the money?

No, you don't lose it. It is calculated out at a certain value and you can apply it to another school.

[Anonymous]

Anonymous wrote:Yup, lock in tuition now, save aggressively and compound that interest

I understand why that would make sense from the last 20 years or so of history, but personally I feel like there's enough possibility of a disruption to expenses that I've decided to go the savings account instead.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yup, lock in tuition now, save aggressively and compound that interest

I understand why that would make sense from the last 20 years or so of history, but personally I feel like there's enough possibility of a disruption to expenses that I've decided to go the savings account instead.

529 plan

[Anonymous]

The prices will be absurd by the time our kids go to college, unless the bubble bursts somehow. I am not planning on that so trying to put as much as I can away, after living expenses and maxing retirement. We have 3 kids and do $200/month/kid- that’s all we can afford right now although we will have one more in public school next year so will be able to increase slightly.

We know it won’t pay for everything, but it will help and we will still be working so will need to cash flow some as well. I would prefer that my kids don’t have large student loans like I did, but if they have to have some, I am ok with that as long as it doesn’t cripple them post graduation.

[Anonymous]

WHY ARE WE accepting this?????

It’s complete bullshit. Next on agenda: college reform. It’s absolutely immoral.

[Anonymous]

That seems awfully high. The most expensive colleges we’ve seen are $70K a year so $280 for four years currently. Even 15 years out that seems high.

[Anonymous]

Anonymous wrote:WHY ARE WE accepting this?????

It’s complete bullshit. Next on agenda: college reform. It’s absolutely immoral.

No, next on agenda is a societal paradigm shift around what jobs even require college. Many jobs now will be obsolete in 20 years anyway.

[Anonymous]

Anonymous wrote:That seems awfully high. The most expensive colleges we’ve seen are $70K a year so $280 for four years currently. Even 15 years out that seems high.

OP here. I was surprised too, but that's what Vanguard said.

I agree with the PP who said it's unacceptable. I struggle to imagine more than a small handful of families who can pay today's tuition without struggling, much less the projected tuition costs 15 years out. Something has a give at some point.