Reply to Sorry DCUM middle class, your kids are screwed for college

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]FAFSA  previously benefitted those who went on extravagant vacations and penalized those who scrimped to save. Not sure how new FAFSA works.

My friend ended up quitting her $70k  job 5 years before her kids went into college - they did the math with a financial planner and if all 3 of her kids were going to college determined they would almost all get a free ride without her salary and they could rely on her husbands only. She picked up off the books babysitting work and now with 3 kids in college figure they are ahead at least $200k by her NOT working.

Crazy…[/quote]

What colleges are we talking about?  I mean, literally, 97% of colleges won't give you a free ride at that income.  I assume the vast majority of kids even where your friend lives end up going to a regional state college where there is little aid for anyone.

I guess you have to be lucky enough to live in the middle of nowhere, earn in probably the top 3% of incomes for middle of nowhere, and have kids that can get accepted to Top 20 schools.

[/quote]

I don’t even get the math.

You give up $70k of income, for 3 kids in college that’s 12 years so -$840k.

Ignore the opportunity costs of lost investment income and taxes for now to keep it simple.

Assume the kids go to 80k/year T50 for 12 college-years that’s $960,000 in tuition.

At $120k annual income it’s no free ride maybe you get the net cost down by half to 40k. So $40k per year x 12 is $480,000 in savings.

Golly fellas which number is larger, 840 or 480.

As the kids say, congrats you played yourself.[/quote]

With 70k salary you only take home 42k. It usually doesn’t take 12 years for 3 kids to finish college. Top colleges ask you to pay no more than 20k a year if household income is  120k AGI 100k. Lastly don’t forget the value of all your free time, be it time spent with your family or $ from a side hustle. [/quote]

Hold on I can barely add here.

How many years of college do you pay for with three kids again?

Kid 1- 4 years of tuition 
Kid 2- 4 years of tuition
Kid 3- 4 years of tuition

Those years can overlap of course but it’s always going to be 12 years worth of tuition.[/quote]

Correct - always 12 years of college tuition but not 12 years of forgone salary - that can be a big difference.  PP noted it was only 7 years forgone salary.[/quote]

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