This conversation seems 2-3 late.

DC1 should not have been able to suck up money to attend a private while DC3 doesn’t get anything paid for. 3 years ago I would have figured out an amount you could afford for each child, without borrowing. And then discussed this with them. Then you could have MAYBE taken a loan to help fill the gaps if needed, maybe.

Do not borrow from retirement for college. You can finance college, you can not finance your retirement.

Anonymous wrote:ROTC scholarships! We have four kids and three are on full ride scholarships with monthly stipends. All are engineering majors and will be doing some tech or flying related job when they commission. They are getting wonderful College educations and serving their country. If your children are fit and smart, maybe consider the service route?

Thank you for great suggestion.

Anonymous wrote:Did either kid 1 or 2 get merit aid? If not you are paying 110 annually? With only 150 in the 529? Kid 1 is going to chew through that by graduation. The last child is SOL in comparison, there is no way he can go to private full pay. Is s/he really smart? High schools? An athlete? I only see in state as an option for the third?? How is this fair? Don’t borrow against retirement, take an equity loan or sell the rental

DC1 got huge merit after the unsubsidized loan we are paying 38k and she is trying to get a job for summer to help.
DC2 no merit we pay about 42k after the loan also will work summer and trying to be RA
DC3 is very hardworking very high stat (both gpa and sat above 1550) good EC related to her major and other ECs and interested to major CS and to be fair to her we have to pay similar by far she worked very hard in high school.
So the plan. is the 150k for next year but we need to come up for he rest. I don't want to limit the third one only instate if she secures some merit to match the in-state that would be close to 40-50k. Consensus at least so far not to borrow from retirement.

NEVER take retirement money out to pay for college.

I’d insist that the kid at the private college transfer to public in-state or shoulder the financial difference. All three kids get 1/3 of the pot. Kids who go to more expensive schools take out loans. As two graduate, you can help repay loans if the one got less than the others, and IF you are happy to do so.

Sell the rental ASAP. If the rent is only covering the mortgage, you are doing it all wrong.

2 of the kids are already in college, stop telling thisbparent her kids should be in different schools - that ship has sailed

Use the 529s (that's is counting against you for financial aid, drain em), then apply for aid again. If you need to borrow, borrow against the rental, not retirement.

These responses seem to ignore the fact that you have the rental. We also don't know how much you have in retirement.

We have kind of a similar situation, but #3 is still a HS freshman. My plan when she goes to college is -- if we need the cash-- to either sell or refinance the rental. (I prefer sell; DH prefers refinance.). We are in a slightly better situation, though, because we pay off the house about that same time, so our mortgage payments go to zero (though there are still escrow-type costs to cover). So in our case, I think we can cover a good deal of the tuition just from those cashflow savings.

Of the two main options, the refinance probably makes the most sense financially, depending on interest rates, because you can deduct the interest costs from taxes as a business expense. The trick for you is that right now, interest rates are really high so taking equity out is challenging. (But if you can wait 9 months, it will be better.)

In sum, I would run some numbers on the refinance option, including the increased business tax deduction. (The only reason to tap retirement is if you realistically think you have over-saved there over the years... and only you can assess that... and even then it's really hard to figure out...).

We in almost similar boat but have diligently saved for college. DC 1 was at expensive oos and didn’t like. Transfer back instate and will now have left over in 529. We will change beneficiary to DC2 since instate tuition is a little more than what’s available.

A big NO to option 2. Penalties and no one will let you borrow money to retire. Bad idea. Only option is 1. Take out home equity in rental. Not sure if you can still get a tax deduction since rental and not main home.

How much will you need annually? Can the kids take out the loans and then pay them back once they graduate? Will the 150 be enough for the coming year?

Poor decisions were made before you got to this point. Don't make another one by taking retirement money out. DC1 choice was a bad one. We have three kids, similar HHI (slightly higher), but wouldn't do even one private college. All went to instate flagship.

We are in a very similar situation with a similar HHI, two kids in college, and one headed there soon. I sincerely told my kids that we'd pay for in-state public and for anywhere else they would have to arrange their own financing. My parents made the same deal with me and I got a terrific education in Maryland.

ROTC

Don’t have three kids.

ROTC scholarships! We have four kids and three are on full ride scholarships with monthly stipends. All are engineering majors and will be doing some tech or flying related job when they commission. They are getting wonderful College educations and serving their country. If your children are fit and smart, maybe consider the service route?

Did either kid 1 or 2 get merit aid? If not you are paying 110 annually? With only 150 in the 529? Kid 1 is going to chew through that by graduation. The last child is SOL in comparison, there is no way he can go to private full pay. Is s/he really smart? High schools? An athlete? I only see in state as an option for the third?? How is this fair? Don’t borrow against retirement, take an equity loan or sell the rental