Anonymous wrote:Our financial advisor said that 529 was the better bet.

We are just starting our family and looking for a trustworthy and knowledgeable financial planner to help us make decisions about how/when/what to invest to grow college savings - Do you have any tips for VA financial planners that work with young families? Thank you!

UVA and W&M have basically lost their state funding under McDonnell and Cuccinelli, and are projecting at least 7% p.a. rate increases. There will also be enhanced capital costs because the state has made it clear that it will no longer fund any capital expansions at either UVA or W&M. So an extrapolation of the current tuition, room & board, fees, and cash expenses, plus a rounding amount, would yield a total annual in-state rate of roughly $47,000 p.a. by 2019 (W&M will freeze tuition, but no other costs, for the standard four years if done on campus without a break -- no word from UVA yet). A 7% rate increase means that there is no safe investment vehicle that is available to the general public, net of investment management fees, that will work. The safest course of action, if you can swing it, is assume a BA/BS cost at the two premiere state schools of about $200 K effective 2019.

$40k t $50k per year? That includes the cost of living on campus
If you live off campus the cost is half of that

Anonymous wrote:

Anonymous wrote:Current price is 7,675/semester, which means 61,400 for 4 years for only tuition and fees (now between 12-14k/year at UVA and WM). If you assume a 4% return (s&p has averaged 8% over the last 17 years), that would mean they think tuition will be 120k in 17 years.

I don't see that happening with wages not moving that much in the past few decade and seemingly unlikely to increase significantly any time soon. I think there would be too much of an outcry if tuition alone was 120k as public college would be ultimately unaffordable for most americans.

Plus - in the prepaid fine print if you cash out or go private/OOS you get the LESSER of the payments+return or the public tuition and fee. WM and UVA are great schools and many of the others are very good, but too much can happen in that time. It's a gamble either way, and they pay actuaries that are smarter than me to set the pricing....

Most of private university is now cost about $40K to $50K per year. For 4 years tuition, you are talking about $160K to $200K. You don't believe the state university will cost $30K per year or $120K for 4 years tuition in 17 years, it will happen.

Tuition alone at 120k for 4 years, tuition is around half of the total cost, so 4 years of in-state college for 250k? I don't see that happening, only the elite or those willing to take a ton of debt could go to public school. Not without significant gains in earnings through the us.

Anonymous wrote:Current price is 7,675/semester, which means 61,400 for 4 years for only tuition and fees (now between 12-14k/year at UVA and WM). If you assume a 4% return (s&p has averaged 8% over the last 17 years), that would mean they think tuition will be 120k in 17 years.

I don't see that happening with wages not moving that much in the past few decade and seemingly unlikely to increase significantly any time soon. I think there would be too much of an outcry if tuition alone was 120k as public college would be ultimately unaffordable for most americans.

Plus - in the prepaid fine print if you cash out or go private/OOS you get the LESSER of the payments+return or the public tuition and fee. WM and UVA are great schools and many of the others are very good, but too much can happen in that time. It's a gamble either way, and they pay actuaries that are smarter than me to set the pricing....

Most of private university is now cost about $40K to $50K per year. For 4 years tuition, you are talking about $160K to $200K. You don't believe the state university will cost $30K per year or $120K for 4 years tuition in 17 years, it will happen.