Anonymous wrote:$440, 1 child, grandparents currently paying. Not sure if that will go on forever and I do think $50K tuition if they stop paying will be a stretch with income. We could certainly make it work but it would really cut into our ability to save. And yes, grandparents pay school directly as a way to funnel more money to us for estate planning. Although I don’t think we get the max in cash from them each year. Is it $15K per person? So technically if you have a family of 3 you could get max of $90 a year (2 parents paying max to 3 people?)

What are your other expenses that would prevent you from affording 50k tuition on 440k hhi?

It's interesting because on the financial aid threads, people commonly say that those making $400K (pre-tax) should easily be able to pay $100K+ out of pocket and are living overly luxurious lives because they can't or won't. I was jumped on by many posters because I said that paying $165K out of a $425K income would be difficult for us.

And yet the reality is that even paying $50K out of a $300-400K income (pre-tax) is hard for people. Which makes sense because it's a huge part of take-home income at this level. It's the equivalent of buying a new (nice!) car every year and throwing it out. Not many people at this income level would or could do that.

$440, 1 child, grandparents currently paying. Not sure if that will go on forever and I do think $50K tuition if they stop paying will be a stretch with income. We could certainly make it work but it would really cut into our ability to save. And yes, grandparents pay school directly as a way to funnel more money to us for estate planning. Although I don’t think we get the max in cash from them each year. Is it $15K per person? So technically if you have a family of 3 you could get max of $90 a year (2 parents paying max to 3 people?)

300K HHI, we pay $50,000 for one kid, our mortgage is $3,500 monthly like OPs. My parents pay for the other child. We just funnel the money from my paycheck to a savings account, which we then use to pay for tuition. The money has to come from somewhere, so you have to look at what your spending right now and how you can budget this in. Somehow we make it work. My kids are really, really happy at their school, though, and they are thankful they are not in their local public, so that helps make it feel like it's worth it.

Anonymous wrote:go!

Stop saying this. It’s not cute or clever.

400k and we pay around 120-130 for 3 kids. it’s a big stretch, but we are hoping for a 20% increase in income in the next couple of years. We will also have some inheritance (real estate) we will eventually be able to rely on.

Anonymous wrote:

Anonymous wrote:No not at all. It is part of their estate planning. The generations before them did the same - private school is expected so I just go along with it!

Ie grandparents are wealthy enough that they would be hit by estate tax, so this payment is a way to skirt around gift tax limit (I’m sure they give cash up to max as well, and don’t report tuition as gift, whose going to check?)

Section 2503(e) excludes these payments from the definition of "gifts," so there's nothing to hide.

HHI (gross) is approximated $510,000/year (varies slightly with bonus). Two children, one in Big 3 private (started in high school). Younger child in public middle school oldest child attended.

We pay $50,000+ per year (no financial aid and no family help). We have always been amazing savers and the tuition is paid from current income, and a dedicated savings account we set up years ago for private high school. We live well below our means, so we don’t feel financially pinched at all. Our retirement plans and children’s college funds are fully funded. We also take one trip abroad each year.

School tuition doesn’t count towards the gift tax if they pay the school directly.

Anonymous wrote:175k take home. 45k for one.

You win this thread. Wow.

Anonymous wrote:No not at all. It is part of their estate planning. The generations before them did the same - private school is expected so I just go along with it!

Ie grandparents are wealthy enough that they would be hit by estate tax, so this payment is a way to skirt around gift tax limit (I’m sure they give cash up to max as well, and don’t report tuition as gift, whose going to check?)

$400k two working parents, no family money and $5k mortgage (where and when did that $3500 mortgagee buy??), tuition of $75k for two kids. It’s kind of crushing, we don’t have any savings outside 401k, but out local public’s have just continued a downward slide over last 7 years (even before pandemic)

Anonymous wrote:

Anonymous wrote:HHI $250k, we pay $0 - grandparents pay for the two kids, roughly the equivalent of $100k a year. Obviously we could never afford this ourselves.

Just curious: why is this your setup? You don’t feel uncomfortable taking that kind of money from family?

Sorry meant to quote the above in my last post

No not at all. It is part of their estate planning. The generations before them did the same - private school is expected so I just go along with it!

Anonymous wrote:175k take home. 45k for one.

Are we talking take home or HHI? Not the same for all