Anonymous wrote:By saving very aggressively in Coverdells and 529s since birth we have saved almost enough to send DC to college with no loans (large OOS public—not elite, but expensive nevertheless) and could easily pay for four years in-state. We live frugally and make saving a priority. I think the financial aid/saving conversation should start much earlier in life but in my area many parents do not realize this until it’s too late.

Many of us were paying off our OWN student loans until well into our 30s. I have friends who are still paying them off and I'm 47. They just didn't go into high paying fields. Which I'm sure many on here would say was their mistake. But if the rich aren't going to take the low paying jobs and the poor can't take them, who will? Society needs teachers, social workers, nurses, pediatricians (who make more but not relative to their debt), etc.

My parents' re-financed their house/took out a home equity loan.

By saving very aggressively in Coverdells and 529s since birth we have saved almost enough to send DC to college with no loans (large OOS public—not elite, but expensive nevertheless) and could easily pay for four years in-state. We live frugally and make saving a priority. I think the financial aid/saving conversation should start much earlier in life but in my area many parents do not realize this until it’s too late.

Anonymous wrote:

Anonymous wrote:As soon as our first son was born we started saving for college A small smoothly amount at first and increased when daycare was no longer needed. We do have 80k a year saved for him and his brothers. We do fine but have 10 year old cars. No fancy handbags, clothes, etc.

Now if we had 6 kids no way could we afford college for all six.

Good for you! It’s nice to read about responsible parents who planned ahead.

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I've never owned a fancy handbag. Most of my clothes are from Target or Old Navy. We planned ahead and save for our children's college. Have since they were babies. Still have no where near $80k/year. The idea that you just need to be responsible and avoid buying fancy stuff and drive old cars and voila, college costs covered is the dumbest thing I've read.

Anonymous wrote:

Anonymous wrote:I get that most people on DCUM have $80k saved per year of college and much of America (HHI under $125k) gets aid but do these two realities really cover these gigantic pools of applicants to all the top 50 schools? has the rest of America also saved $80k/year/kid? am I missing something? thinking about this tonight as friends of ours just had their daughter (one of 6 kids, first in college) commit to Carnegie Mellon. I know for a fact that they make more than $150k but I had no idea that $&0k/year was in their budget.

Most of America doesn’t go to colleges this expensive and exclusive and most qualify for enough financial aid to make state schools affordable.

You may differ on the definition of affordable. The stats:

Among today's college students, 65% graduate with student debt. Last year, private student loan debt increased by $16.8 billion or 14%. 15% of all American adults report they have outstanding undergraduate student debt; 7% report outstanding postgraduate student loans.Nov 17, 2021

Report Highlights. Student loan debt in the United States totals $1.75 trillion and grows 6 times faster than the nation’s economy.*

The outstanding Federal Loan Portfolio is over $1.61 trillion.
43.4 million borrowers have federal student loan debt.
The average federal student loan debt balance is $37,113.
Including private loan debt, the average balance may be as high as $40,904.
The average public university student borrows $30,030 to attain a bachelor’s degree.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I get that most people on DCUM have $80k saved per year of college and much of America (HHI under $125k) gets aid but do these two realities really cover these gigantic pools of applicants to all the top 50 schools? has the rest of America also saved $80k/year/kid? am I missing something? thinking about this tonight as friends of ours just had their daughter (one of 6 kids, first in college) commit to Carnegie Mellon. I know for a fact that they make more than $150k but I had no idea that $&0k/year was in their budget.

Responsible parents save for their kids' education.

I’m a responsible parent but I don’t make enough to save much. I’m a single parent and a teacher. I have about $5K saved with two years left before college. I make around $70K. Plenty of parents don’t make enough to save for retirement and college. I took out loans and paid them back and so will my kid. That doesn’t make me an irresponsible parent.

PP, if your kid gets into a top private school, they will have a full ride / no loans.

It would be nice if University of Richmond does what UChicago does with admitted kids of CPS teachers: full-tuition scholarships. They also have some scholarship monies set aside for children of the city’s first responders.

Please. People who choose to be teachers know what the salary will be, it isn't like it decreases every year. Plus, get a summer job to make some tuition money.

Anonymous wrote:I get that most people on DCUM have $80k saved per year of college and much of America (HHI under $125k) gets aid but do these two realities really cover these gigantic pools of applicants to all the top 50 schools? has the rest of America also saved $80k/year/kid? am I missing something? thinking about this tonight as friends of ours just had their daughter (one of 6 kids, first in college) commit to Carnegie Mellon. I know for a fact that they make more than $150k but I had no idea that $&0k/year was in their budget.

Most of America doesn’t go to colleges this expensive and exclusive and most qualify for enough financial aid to make state schools affordable.

Anonymous wrote: Loans

No 18+ can get such big loans. It has to be parent plus loan.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I get that most people on DCUM have $80k saved per year of college and much of America (HHI under $125k) gets aid but do these two realities really cover these gigantic pools of applicants to all the top 50 schools? has the rest of America also saved $80k/year/kid? am I missing something? thinking about this tonight as friends of ours just had their daughter (one of 6 kids, first in college) commit to Carnegie Mellon. I know for a fact that they make more than $150k but I had no idea that $&0k/year was in their budget.

Responsible parents save for their kids' education.

I’m a responsible parent but I don’t make enough to save much. I’m a single parent and a teacher. I have about $5K saved with two years left before college. I make around $70K. Plenty of parents don’t make enough to save for retirement and college. I took out loans and paid them back and so will my kid. That doesn’t make me an irresponsible parent.

PP, if your kid gets into a top private school, they will have a full ride / no loans.

It would be nice if University of Richmond does what UChicago does with admitted kids of CPS teachers: full-tuition scholarships. They also have some scholarship monies set aside for children of the city’s first responders.

Yep. Exactly.

Anonymous wrote:Here is one example. There is massive discounting based on income (financial aid):
Williams College Tuition & Expenses
Tuition and fees $59,660 (2021-22)

Net price for federal loan recipients (2018-2019) $19,480

Net price by family income (2018-2019)

FAMILY INCOME AVERAGE COST
$0-$30,000 $2,498
$30,001-$48,000 $2,223
$48,001-$75,000 $7,134
$75,001-$110,000 $14,653
$110,001+ $40,664

https://www.usnews.com/best-colleges/williams-college-2229/paying

I guess the takeaway is that if you make $111,000 and your kid is going to Williams you need to lobby for a salary cut.

This actually presents a great explanation of why probably everyone on the above scale would need loans. Even the $30k person has to pay for room and board on top of Tuition and expenses, so it's $2,500 + $10,000? (I am probably lite)...the $30k person likely has zero saved...so that is $50k in loans for the kid

The $115k family is really screwed. They have to pay $40,664 + $10,000 - $50,664. $115k after-tax is probably $80k.

Here is one example. There is massive discounting based on income (financial aid):
Williams College Tuition & Expenses
Tuition and fees $59,660 (2021-22)

Net price for federal loan recipients (2018-2019) $19,480

Net price by family income (2018-2019)

FAMILY INCOME AVERAGE COST
$0-$30,000 $2,498
$30,001-$48,000 $2,223
$48,001-$75,000 $7,134
$75,001-$110,000 $14,653
$110,001+ $40,664

https://www.usnews.com/best-colleges/williams-college-2229/paying

Here is one example. There is massive discounting based on income (financial aid):
Williams College Tuition & Expenses
Tuition and fees $59,660 (2021-22)

Net price for federal loan recipients (2018-2019) $19,480

Net price by family income (2018-2019)

FAMILY INCOME AVERAGE COST
$0-$30,000 $2,498
$30,001-$48,000 $2,223
$48,001-$75,000 $7,134
$75,001-$110,000 $14,653
$110,001+ $40,664

https://www.usnews.com/best-colleges/williams-college-2229/paying

I think affordability is a huge reason why wealthy and UMC families are so overrepresented at elite schools. The majority of America looks at the cost and advises their kids to go elsewhere.

The crazy thing to remember is how many wealthy families there are in this country (not to mention all the international families sending their kids to college in the U.S., too). I just looked it up -- 13.61 million households have over $1 million net worth outside of home equity.

So how do the people on DCUM afford elite private colleges? A ton of them actually have the money. Or, like the majority of Americans with more normal incomes, they take out massive loans to cover whatever aid doesn't.

Anonymous wrote:It's absolutely shameful how much a college education costs in this country. And the system pits individuals against each other. People wasting their energies blaming and shaming their peers for not saving enough. Let's direct that energy up the chain and expose the collusion between the schools and the government loan system that perpetuates this insanity.

It's also abhorrent how there is not a viable vocational alternative. Another track that is seen as equally worthy of pursuing.

To answer your question, I don't know how most families pay for a college education other than going into debt to some degree.

I agree with a bunch of your points, but not sure why you think there is no vocational alternative. Community colleges provide lots of vocational alternatives, and kids that graduate with plumbing, welding. electrician, etc. trades can do very well financially. Flat Iron and similar schools provide 1-year coding training (for maybe $15k I think?) and have very high placement rates and at least advertise $80k average salaries.

Stay away from For-Profit schools.