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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]My DH wants to cover 100%, I think 33% from us, 33% from the kid, 34% from scholarships is reasonable.  Honestly loans aren't the worst thing that can happen to a kid and I think knowing going in that they have to pay for part of it will make them think longer and harder about public vs private, what major they want to pick and what their first job out of college will pay, the works.

I've told him that even if we hit the Powerball I'd stick to this plan, and then just pay off their loans as a graduation present. [b]I really think having a kid be personally invested in their college education on the financial side makes them take it more seriously.[/b][/quote]

Maybe so in old days when cost was under control. With COA of 25k (instate public) to 70k (private) per year, there's no way kids can contribute in a meaningful way. Don't rely on that approach. It's a really outdated thinking.

[/quote]

I don't know. I think if kids are contributing (through loans) about $5-10k per year, it's meaningful for them without crushing their future with burdensome loan costs.  Our plan is to fully cover in-state public.  But if kids wanna go to private, I think they're gonna have to finance something like $7.5k per year.  They should understand that it costs a lot more to go private.[/quote]

They cannot take out student loans for $7,500 per year Until they were junior and senior years.  The federal limit is $5500 the first year and $6500 the following year.

For anything beyond those amounts, you would need to take out a parent PLUS loan. [/quote]

huh? My DH didn't have any parental help (even though they could afford it) and he had 100% loans of 20k a year. [/quote]

His parents signed those loans which were above and beyond the federal limit for student loans:

https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized#how-much[/quote]

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