Reply to FAFSA - is middle-class waste time applying?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I would like to hear more from UMC people about how College is a special consumer good where family income shouldn’t matter and the net price should be essentially zero when literally everything else in the world is allocated by family wealth, including “free” public school (you have to be able to afford to live in the district).

You thought it was fair when you bought your way into everything else in your lifestyle, well now welcome to the big leagues.

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I don't think UMC families are saying that they should be given aid. Just lamenting that they cannot afford it, even if some insist that they can.  Many of us have 529 accounts, but those funds didn't grow that much, even putting in [b]more than $2500 per year per account[/b], and we have multiple kids. It's enough for in state, but not 80k per year.  When we started saving college was a bit cheaper.    Several years ago, when my DC was in MS, we looked at an expensive private. It was $60K/year.   Now it's closer to $85k per year.  Saving $240k is doable.  Saving closer to $350K is much harder.

If you still have 20 working years, I could see how you think you can afford to pull back on funding retirement, and save later, but if you are 55+, you don't have that luxury.[/quote]

Obviously, saving only $2500/year/kid is not going to produce enough for $80K/year schools in 18 years (which will cost way more than 80K then).

Majority of kids have to pick schools they can afford, most cannot afford 80K/year, or they could but smartly realize that saved money would be nice to have for grad school. [/quote]
Read bolded.. we saved way more than $2500 per year per account. We have two accounts per child.  Still not enough to cover $80K per year per child given that the 529 didn't grow that much.[/quote]

So why write it that way?  How much did you save per year?  Why did the 529 not grow that much?  If you dont have it all in the growth market, it may not. But that is on you, as there are 529s that allow you to do that.  You can pick one (may not be your state's) that allows you to select the MF to invest in.  American Funds in VA is an excellent example.  My kid's funds earned 8-9% annual on average during the aggressive years. We didn't pull back until age 15/16 to less aggressive. [/quote]

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