Anonymous
03/27/2024 10:37
Subject: Re:Donut hole reality
Having been through this process, and saved quite a bit towards college, we still chose public school as do many people in our financial situation. The biggest problem with the belief that "donut reality" means being shut out, is letting rich people convince you that expensive is better. Despite what US news claims, in reality, a kid can have the fabulous life and a quality education and not deplete their parents of every cent they saved, plus take on debt and undue stress, for an undergrad degree.
Anonymous
03/27/2024 10:35
Subject: Donut hole reality
We have three kids who will be in college at the same time. With the new FAFSA rules on siblings, we are now a donut hole family. When they were younger and we had three in daycare, we made much smaller salaries, but now we make enough that if they don't consider siblings we don't get any financial aid.
We have been saving at least something every month since they were born towards college....some months it was $20 a kid, some months it was $1,000 a kid. We'll have saved about $130K per kid for college. Which is a huge amount, but not enough for most non-state schools. Which is ridiculous.
We have been saving at least something every month since they were born towards college....some months it was $20 a kid, some months it was $1,000 a kid. We'll have saved about $130K per kid for college. Which is a huge amount, but not enough for most non-state schools. Which is ridiculous.
Anonymous
03/27/2024 10:30
Subject: Donut hole reality
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:The way siblings are calculated for financial aid completely changed. We have kids one grade level apart. We always thought our oldest might be interested in a gap year so we really thought we would have two kids in college during the same 4 year period.
That is what we planned for and unfortunately for us the way financial aid is calculated has completely changed and we are now expected to pay double what we thought, which we are unable to do. So sometimes you plan but the parameters fundamentally change. So if you have multiple kids in college and are expecting some aid, start calculating again.
This. I think it's disgusting that FAFSA changed this.
No, it’s fair. You should not get rewarded for multiple kids.
Disagree and I have one child (teen). We need more future taxpayers.
+1 We need more future educated, high earner taxpayers.
Anonymous
03/27/2024 09:53
Subject: Donut hole reality
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:We hired a financial planner when DC was born 13 years ago. We were told that when DC is 18 that a 4-year private college would be about $500k. Could not believe it then, but looks like that is accurate. Crazy.
Yep. We are financial planners and opened up 529 accounts before our kids left the hospital. $500 a month until daycare / preschool costs were done and then $1200 w month per kid thereafter. We drive 10 year old cars. Also max out retirement contributions. We spend on vacations but not material goods ( I do not have any expensive purses or shoes and shop at Marshall’s and Kohls).
We have $400k for each kiddo saved.
As financial planners you should understand the concept of risk. At birth you were confident both of your children would attend private 4-year universities? Your plan actually seems like overkill.
Financial planners???! Your opportunity costs were insane! You missed out on an incredible market run. You could have a millions in stocks now if you hadn’t overfunded the 529s!!
Why are you assuming they didn’t get market returns in their 529?
Anonymous
03/27/2024 08:58
Subject: Donut hole reality
Anonymous wrote:Anonymous wrote:Must be nice to have $2400/month to put into accounts for college.
Not everyone has that kind of income
Exactly. Honest to god middle class may have $100 to put into accounts.
Middle class cannot afford $100 a month.
They should strictly look at income the past 12-18 years and only consider things like disabilities or other significant factors. How you spend it should not count as why should someone get rewarded for a nicer house and things.
Anonymous
03/27/2024 08:58
Subject: Donut hole reality
Anonymous wrote:Anonymous wrote:Anonymous wrote:We hired a financial planner when DC was born 13 years ago. We were told that when DC is 18 that a 4-year private college would be about $500k. Could not believe it then, but looks like that is accurate. Crazy.
Yep. We are financial planners and opened up 529 accounts before our kids left the hospital. $500 a month until daycare / preschool costs were done and then $1200 w month per kid thereafter. We drive 10 year old cars. Also max out retirement contributions. We spend on vacations but not material goods ( I do not have any expensive purses or shoes and shop at Marshall’s and Kohls).
We have $400k for each kiddo saved.
As financial planners you should understand the concept of risk. At birth you were confident both of your children would attend private 4-year universities? Your plan actually seems like overkill.
Financial planners???! Your opportunity costs were insane! You missed out on an incredible market run. You could have a millions in stocks now if you hadn’t overfunded the 529s!!
Anonymous
03/27/2024 08:57
Subject: Donut hole reality
Anonymous wrote:Anonymous wrote:Must be nice to have $2400/month to put into accounts for college.
Not everyone has that kind of income
Exactly. Honest to god middle class may have $100 to put into accounts.
I could have written this. Started at $25/mo, worked up to $100/mo. Occasionally put in a chunk when I had more coming in (freelance) or from kid's earnings. We saved 100k per kid in the end (with a lot of help from the market) and got good need based aid.
Anonymous
03/27/2024 08:51
Subject: Re:Donut hole reality
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:It is sad that so many of us have bought into the notion that high-quality higher ed is a luxury good, like a Gucci bag.
For most of these schools, their prestige comes from how few people can access what they're selling. Drive up the price. Drive down the admission rate. That makes the school hot!
Instead of endless marketing and building luxury amenities at keeping-up-with-the-Jones rates, schools should invest in growing their capacity and holding down costs.
That s chool endowments have more than tripled over the last two decades and the number of enrolled undergrads hasnt gone up by much tells you a lot about the basic supply demand imbalance that we are seeing today.
I think that DCUMers make the grave mistake of thinking that the endowment of each school is the bottom line. It is not. Yes, the full pay parents are paying for the next kid to attend - but the real issue is the donut hole people who have their hand out like it is their job. The same people who attended private school for nothing, but magically had multiple renovations, and the luxury car/s, living in a house worth a substantial amount. These are not people making the sacrifices they think they are making. They are getting much for nothing, and still refusing to save. Where does it end? DP here.
As far as colleges cramming as many kids as possible into the colleges, you want to live like China? Does that seem appealing? Where are all these professors and seats going to come from? The same tuition rate? Likely not. Again, where does it end?
What? You think donut hole families all went to private school for nothing?!?!! Lmaof.
I am from a donut hole family and went in-state public university. Private was out of the question. It was my only option. I make more than my parents did- but still donut hole—just above the cutoff for financial aid.
Donut hole is often a code for we make a good income and choose to spend it in a way that we aren't saving enough and want to whine about it. We don't do things like vacations to save...
We’ve been saving since my kids were babies. Still don’t won’t have 400k/saved per kid. You need to be well off to save that much PP.
You don't need 400k per kid by HS graduation. You can pay some as you and take a few loans along the way. Also, your investment for 3rd/4th year should also appreciate some.
Anonymous
03/27/2024 08:48
Subject: Donut hole reality
Anonymous wrote:Must be nice to have $2400/month to put into accounts for college.
Not everyone has that kind of income
Exactly. Honest to god middle class may have $100 to put into accounts.
Anonymous
03/27/2024 08:45
Subject: Donut hole reality
Anonymous wrote:Anonymous wrote:The way siblings are calculated for financial aid completely changed. We have kids one grade level apart. We always thought our oldest might be interested in a gap year so we really thought we would have two kids in college during the same 4 year period.
That is what we planned for and unfortunately for us the way financial aid is calculated has completely changed and we are now expected to pay double what we thought, which we are unable to do. So sometimes you plan but the parameters fundamentally change. So if you have multiple kids in college and are expecting some aid, start calculating again.
This. I think it's disgusting that FAFSA changed this.
FAFSA didn't change this. Republicans did. When FAFSA was being revised, Lamar Alexander tacked this on.
Anonymous
03/27/2024 08:40
Subject: Donut hole reality
Must be nice to have $2400/month to put into accounts for college.
Not everyone has that kind of income
Not everyone has that kind of income
Anonymous
03/27/2024 08:34
Subject: Donut hole reality
Anonymous wrote:Anonymous wrote:We hired a financial planner when DC was born 13 years ago. We were told that when DC is 18 that a 4-year private college would be about $500k. Could not believe it then, but looks like that is accurate. Crazy.
Yep. We are financial planners and opened up 529 accounts before our kids left the hospital. $500 a month until daycare / preschool costs were done and then $1200 w month per kid thereafter. We drive 10 year old cars. Also max out retirement contributions. We spend on vacations but not material goods ( I do not have any expensive purses or shoes and shop at Marshall’s and Kohls).
We have $400k for each kiddo saved.
As financial planners you should understand the concept of risk. At birth you were confident both of your children would attend private 4-year universities? Your plan actually seems like overkill.
Anonymous
03/27/2024 08:25
Subject: Donut hole reality
Anonymous wrote:At least 1/4 is room & board, but it's still expensive.
Hope she saved some money attending public K-12. I rather invest in private college over white-flight "elite" private K-12.
You virtue is beyond compare.
Anonymous
03/27/2024 08:22
Subject: Donut hole reality
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:The way siblings are calculated for financial aid completely changed. We have kids one grade level apart. We always thought our oldest might be interested in a gap year so we really thought we would have two kids in college during the same 4 year period.
That is what we planned for and unfortunately for us the way financial aid is calculated has completely changed and we are now expected to pay double what we thought, which we are unable to do. So sometimes you plan but the parameters fundamentally change. So if you have multiple kids in college and are expecting some aid, start calculating again.
This. I think it's disgusting that FAFSA changed this.
No, it’s fair. You should not get rewarded for multiple kids.
Ah the elitist who believes only the very wealthy should have children.
Glad my parents who had 7 didn’t listen to you. My dad was a lot better father than Bill Gates.
have as many kids as you like, and can afford. Just don't expect others to pick up the tab for their attendance at college, much less elite colleges, simply because you have a lot of them.
Anonymous
03/27/2024 00:35
Subject: Donut hole reality
Anonymous wrote:Anonymous wrote:The way siblings are calculated for financial aid completely changed. We have kids one grade level apart. We always thought our oldest might be interested in a gap year so we really thought we would have two kids in college during the same 4 year period.
That is what we planned for and unfortunately for us the way financial aid is calculated has completely changed and we are now expected to pay double what we thought, which we are unable to do. So sometimes you plan but the parameters fundamentally change. So if you have multiple kids in college and are expecting some aid, start calculating again.
This. I think it's disgusting that FAFSA changed this.
You say that as if FAFSA ever came with a check. No one around here calling themselves donut hole is anywhere close to receiving a Pell Grant, even with seven kids under the old rules.