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[quote=Anonymous][quote=Anonymous]they're not in a different class.

I've seen you post before about income vs assets and it's apparent you know .. a little. But it's easy to know more so let's do this!

Income varies quite widely btw schools but it can be somewhere between 22-47% of after tax income. Be sure to add back any retirement contributions into that income (eg income /= AGI).

Let's say you make 240: you'll pay 40-72k for college.

Then, parents are expected to pay 5.64% of their unsheltered assets annually. 529s are parent assets, if they're in the parents name (normal). Counted just the same.

so if you have 500k in assets: That's 28,200 a year to add to total.

if you have that 500k in retirement, you pay nothing. But what you can shift into retirement is limited by income so you're probably stuck here.

if you have another 100k in the kids 529: add $5640

Kids assets are hit at 20% so dont have that 529 in the kids name.  Kids income is hit at 50% (After a set aside).

So you can see, this family is well into full price range.

[/quote]

You obviously know a lot and your analysis is spot on.  Yes, having $500K versus $200K in assets may very well push you into full pay status, and I didn't mean to imply otherwise.  What I was trying to push back on was the idea that if you were diligent in saving that additional $300K, a college will get most of that money so what's the point of saving it.  As you correctly pointed out, 5.64% is a heck of a lot less than the 22+% for income.  So even if that $300K pushes you into full pay status, the financial/need-based aid you would have otherwise received (given the same income) is not going to come close to $300K, meaning you're better off having saved that money than not. [/quote]

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