Reply to Parents of little kids: What are your college savings goals?

Forum Index » Money and Finances

Reply to "Parents of little kids: What are your college savings goals?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]We have a similar HHI as you and here is our plan:

- 529 account save 100% of in-state tuition + room/board.  This is about $120k in today's dollars.  Obviously, there are unknowns with respect to inflation of education costs and market returns on investments, but we are putting about about $5k per year into 529 and we think this will get us pretty close to target and we can adjust as our kids get closer to college age

- if child wants to go to private school, we expect a shortfall of about $100k in today's dollars.  We expect to be able to cover this shortfall with a combination of (1) student loans, (2) cash flow (3) scholarships, and (4) our non-529 savings

(1) I would not want my kid to take out debilitating amount of student loans, but I think it's fair to have some skin in the game and some appreciation for the extra costs of private vs. public.  Remember, we're covering in-state public with the 529, so if the kid wants to take on private, maybe expect to take out student loan for 1/4 of the shortfall.  That's $25k in student loans in today's dollars.  I think that's about right.

(2) Staying really simple, even if we just diverted the current $5k per year that is going to 529, towards cash flow covering the college costs while in attendance, that's $20k total.  Given likely raises and what not, I expect we could cover $25k of the private school shortfall through cash flow during those years.

That leaves $50k shortfall remaining.  That will be covered by a combination of scholarships/financial aid or (more likely) from our non-529 savings.  If I have to pull the full $50k from our other savings, that is fine.  IT should not be a problem given our other savings goals.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics