Anonymous
Post 10/19/2016 08:30     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:We are just below $200,000 and I am not going to save for college. For us, it doesn't make any sense. I am making a trust that she will have access to after she graduates. That way she will still be eligible for maximum aid.

She will then be allowed to use a portion of the principal to pay off school. The rest will go towards rent.



isn't this the same as saving for college? She's going to be using the money in large part, for that purpose.



The money will still be in an index fund. A decent loan shouldn't start accruing interest until after he's out. So, the principal increases, on average, 7% each year while the loan stays at 0%.


What index fund increases on average 7% per year at this point? Can you really count on that?

Anonymous
Post 10/19/2016 07:43     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Sorry, was trying to respond to the poster with a HHI of 200k and student loan debt. Absolutely apply for aid. You will likely get between 5k to 10k. Possibly more at larger private schools.


Thanks for the feedback. It's good to know that posing the question to the schools with the higher price tags at least isn't nuts.

We're really in an oddly bittersweet spot right now of being almost able to afford these schools, but not quite there yet. I need a stop watch so I can pause my kid at age 4 while I get another 5 years of career experience. "Stay here, honey, and play star wars until mommy gets back!"

On the larger topic of this thread: I'm a bit confused about why college savings are important when considering independent school. Retirement I understand. Fears of a lack of emergency fund I understand. But if you can afford 20k+ every year for private school tuition, in years 1-12 of my career -- what is different in year 13? When junior applies to college, I just keep right on paying 20k+ in tuition.


This could work if you have one kid and any tuition increases are modest. If you have two or three kids, you're looking at $20 for a few years, then $40k, then $60k. When subtracted from a $200k income after taxes, that doesn't leave you with a ton of wiggle room.

Also, $20k might pay for state colleges (room and board), but definitely won't cover more expensive private schools. You're looking at $61k per year for the likes Emory and Villanova. When the kids overlap in college, it doubles. That's a daunting sum to pay out of current earned income!


More like 70k + now for schools like NYU.
Anonymous
Post 10/19/2016 07:40     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:
that's the route we are taking also. Paying it forward.
Praying for financial aid/scholarships.
I don't think it's irresponsible.. DC will go to college one way or another.


Perhaps I am confused about this expression, but how does this constitute paying it forward?
Anonymous
Post 10/19/2016 04:27     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:No, we receive aid and have saved 0 for college.


How responsible of you.


What are my choices? I provide the best education there is now.


Perhaps I'm being unfair, not knowing you at all, but I think anyone can save a little bit for college--just to demonstrate to their kids the importance of living within means and putting money away.

And, I know from making annual fund calls, the people who are receiving aid often won't even chip in $100 for the annual fund.


Maybe that money would go straight to a nearly maxed out credit card. Judge not.
Anonymous
Post 10/18/2016 19:55     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:No, we receive aid and have saved 0 for college.


How responsible of you.


What are my choices? I provide the best education there is now.


that's the route we are taking also. Paying it forward.
Praying for financial aid/scholarships.
I don't think it's irresponsible.. DC will go to college one way or another.


Same here. Kid is very talented, was accepted to TJ but stays in private for now. We are not rich, we receive financial aid for private school so I unticipate we will get some aid in college too. We are giving kids the best education possible now. We travel a lot and i like that they learn to live today.
Anonymous
Post 10/18/2016 16:28     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Sorry, was trying to respond to the poster with a HHI of 200k and student loan debt. Absolutely apply for aid. You will likely get between 5k to 10k. Possibly more at larger private schools.


Thanks for the feedback. It's good to know that posing the question to the schools with the higher price tags at least isn't nuts.

We're really in an oddly bittersweet spot right now of being almost able to afford these schools, but not quite there yet. I need a stop watch so I can pause my kid at age 4 while I get another 5 years of career experience. "Stay here, honey, and play star wars until mommy gets back!"

On the larger topic of this thread: I'm a bit confused about why college savings are important when considering independent school. Retirement I understand. Fears of a lack of emergency fund I understand. But if you can afford 20k+ every year for private school tuition, in years 1-12 of my career -- what is different in year 13? When junior applies to college, I just keep right on paying 20k+ in tuition.


This could work if you have one kid and any tuition increases are modest. If you have two or three kids, you're looking at $20 for a few years, then $40k, then $60k. When subtracted from a $200k income after taxes, that doesn't leave you with a ton of wiggle room.

Also, $20k might pay for state colleges (room and board), but definitely won't cover more expensive private schools. You're looking at $61k per year for the likes Emory and Villanova. When the kids overlap in college, it doubles. That's a daunting sum to pay out of current earned income!


You are right, I am assuming that the private school tuition of roughly 20-40k per year (depending on where one goes) approximates college current college tuition rates, and that those tuitions will rise at about the same rate, while I continue to advance enough to jog with them. Which may be a bit faulty.

Looking online at a few examples, I see your point: 25k is actually the University of Maryland's price tag (instate). University of Notre Dame is just under 50k. Wow. At least MD has an honors college...





Lots of state schools are now giving preference to out-of-state students. Demonize me all you want for gaming college tuition. I will sleep fine.
Anonymous
Post 10/18/2016 16:27     Subject: if you're using private, are you saving enough for each child to go to any college?
No college is worth 60k so to me, I'd rather invest in the early education and send them to in state college. But it's a different perspective, some feel private K-12 is a waste of money, but to me it is a better investment then an expensive college where they may or may not learn anything.
Anonymous
Post 10/18/2016 16:26     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Sorry, was trying to respond to the poster with a HHI of 200k and student loan debt. Absolutely apply for aid. You will likely get between 5k to 10k. Possibly more at larger private schools.


Thanks for the feedback. It's good to know that posing the question to the schools with the higher price tags at least isn't nuts.

We're really in an oddly bittersweet spot right now of being almost able to afford these schools, but not quite there yet. I need a stop watch so I can pause my kid at age 4 while I get another 5 years of career experience. "Stay here, honey, and play star wars until mommy gets back!"

On the larger topic of this thread: I'm a bit confused about why college savings are important when considering independent school. Retirement I understand. Fears of a lack of emergency fund I understand. But if you can afford 20k+ every year for private school tuition, in years 1-12 of my career -- what is different in year 13? When junior applies to college, I just keep right on paying 20k+ in tuition.


This could work if you have one kid and any tuition increases are modest. If you have two or three kids, you're looking at $20 for a few years, then $40k, then $60k. When subtracted from a $200k income after taxes, that doesn't leave you with a ton of wiggle room.

Also, $20k might pay for state colleges (room and board), but definitely won't cover more expensive private schools. You're looking at $61k per year for the likes Emory and Villanova. When the kids overlap in college, it doubles. That's a daunting sum to pay out of current earned income!




The game at state schools is to give preference to out-of-state students. So go ahead and demonize me for gaming the college system while you try to save up 240k.

You are right, I am assuming that the private school tuition of roughly 20-40k per year (depending on where one goes) approximates college current college tuition rates, and that those tuitions will rise at about the same rate, while I continue to advance enough to jog with them. Which may be a bit faulty.

Looking online at a few examples, I see your point: 25k is actually the University of Maryland's price tag (instate). University of Notre Dame is just under 50k. Wow. At least MD has an honors college...
Anonymous
Post 10/18/2016 16:18     Subject: if you're using private, are you saving enough for each child to go to any college?
Oh, I forgot the check the room and board costs. Yep, Notre Dame over 60k.

What happened? I must have spent more time than I realized in grad school for tuition to have risen so much.
Anonymous
Post 10/18/2016 16:14     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Sorry, was trying to respond to the poster with a HHI of 200k and student loan debt. Absolutely apply for aid. You will likely get between 5k to 10k. Possibly more at larger private schools.


Thanks for the feedback. It's good to know that posing the question to the schools with the higher price tags at least isn't nuts.

We're really in an oddly bittersweet spot right now of being almost able to afford these schools, but not quite there yet. I need a stop watch so I can pause my kid at age 4 while I get another 5 years of career experience. "Stay here, honey, and play star wars until mommy gets back!"

On the larger topic of this thread: I'm a bit confused about why college savings are important when considering independent school. Retirement I understand. Fears of a lack of emergency fund I understand. But if you can afford 20k+ every year for private school tuition, in years 1-12 of my career -- what is different in year 13? When junior applies to college, I just keep right on paying 20k+ in tuition.


This could work if you have one kid and any tuition increases are modest. If you have two or three kids, you're looking at $20 for a few years, then $40k, then $60k. When subtracted from a $200k income after taxes, that doesn't leave you with a ton of wiggle room.

Also, $20k might pay for state colleges (room and board), but definitely won't cover more expensive private schools. You're looking at $61k per year for the likes Emory and Villanova. When the kids overlap in college, it doubles. That's a daunting sum to pay out of current earned income!


You are right, I am assuming that the private school tuition of roughly 20-40k per year (depending on where one goes) approximates college current college tuition rates, and that those tuitions will rise at about the same rate, while I continue to advance enough to jog with them. Which may be a bit faulty.

Looking online at a few examples, I see your point: 25k is actually the University of Maryland's price tag (instate). University of Notre Dame is just under 50k. Wow. At least MD has an honors college...
Anonymous
Post 10/18/2016 16:00     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:No, we receive aid and have saved 0 for college.


How responsible of you.


What are my choices? I provide the best education there is now.


Perhaps I'm being unfair, not knowing you at all, but I think anyone can save a little bit for college--just to demonstrate to their kids the importance of living within means and putting money away.

And, I know from making annual fund calls, the people who are receiving aid often won't even chip in $100 for the annual fund.


Isn't the annual fund to collect money to give to those people?



Yes, but you make sacrifices to give back.
Anonymous
Post 10/18/2016 15:54     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:
Anonymous wrote:Sorry, was trying to respond to the poster with a HHI of 200k and student loan debt. Absolutely apply for aid. You will likely get between 5k to 10k. Possibly more at larger private schools.


Thanks for the feedback. It's good to know that posing the question to the schools with the higher price tags at least isn't nuts.

We're really in an oddly bittersweet spot right now of being almost able to afford these schools, but not quite there yet. I need a stop watch so I can pause my kid at age 4 while I get another 5 years of career experience. "Stay here, honey, and play star wars until mommy gets back!"

On the larger topic of this thread: I'm a bit confused about why college savings are important when considering independent school. Retirement I understand. Fears of a lack of emergency fund I understand. But if you can afford 20k+ every year for private school tuition, in years 1-12 of my career -- what is different in year 13? When junior applies to college, I just keep right on paying 20k+ in tuition.


This could work if you have one kid and any tuition increases are modest. If you have two or three kids, you're looking at $20 for a few years, then $40k, then $60k. When subtracted from a $200k income after taxes, that doesn't leave you with a ton of wiggle room.

Also, $20k might pay for state colleges (room and board), but definitely won't cover more expensive private schools. You're looking at $61k per year for the likes Emory and Villanova. When the kids overlap in college, it doubles. That's a daunting sum to pay out of current earned income!
Anonymous
Post 10/18/2016 15:42     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:No, we receive aid and have saved 0 for college.


How responsible of you.


What are my choices? I provide the best education there is now.


Perhaps I'm being unfair, not knowing you at all, but I think anyone can save a little bit for college--just to demonstrate to their kids the importance of living within means and putting money away.

And, I know from making annual fund calls, the people who are receiving aid often won't even chip in $100 for the annual fund.


Isn't the annual fund to collect money to give to those people?
Anonymous
Post 10/18/2016 15:25     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:Sorry, was trying to respond to the poster with a HHI of 200k and student loan debt. Absolutely apply for aid. You will likely get between 5k to 10k. Possibly more at larger private schools.


Thanks for the feedback. It's good to know that posing the question to the schools with the higher price tags at least isn't nuts.

We're really in an oddly bittersweet spot right now of being almost able to afford these schools, but not quite there yet. I need a stop watch so I can pause my kid at age 4 while I get another 5 years of career experience. "Stay here, honey, and play star wars until mommy gets back!"

On the larger topic of this thread: I'm a bit confused about why college savings are important when considering independent school. Retirement I understand. Fears of a lack of emergency fund I understand. But if you can afford 20k+ every year for private school tuition, in years 1-12 of my career -- what is different in year 13? When junior applies to college, I just keep right on paying 20k+ in tuition.
Anonymous
Post 10/18/2016 15:23     Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:Yes, but we live in VA, so if DC get into UVA or W&M, they will go there or pay the difference.



Also, he will have no knowledge of the trust. There is no way I am giving an 18 year old man money. Nope. You are just asking for trouble.

I took the ROTC route, which was a great option. Then there are things like the Peace Corp.