OT - How Are You Paying for Your (kids') College?

I work at a university. The plan is if you want to go to college for free, you go where I work. If not, go to community college. 

to save for my college yet too rich for me to get any grants. I had to work and use student loans. The student loans for Michigan back in the 80s was about 36,000.00, I paid the rest through part time jobs, and in grad school I took out 15,000 even though I had a low paying RA. I paid my student loans off 10 years ago. Paying back student loans sucked at first until I was making better money. I think the kids will have to find ways like we did. Though the government (tax payers) may pay for most to attend college in a few years.

My wife and I kept the condo that we first lived in together and have it rented out. We also bought another unit in the same building and it is rented as well. I figure if and when we have kids, by the time they are in college if they stay local they'll have housing which would eat up a good chunk of the expense. If not, then I would likely sell one or both of them if necessary which would be free and clear by that time (15 yr mortgages) and put that money towards their schooling. But what I really want is to encourage them to play golf or lacrosse so they can go to school for free, that would be awesome. Or even better, out earn the concern.

I'll try and not blather on. I was born and raised in Michigan, and received an undergraduate degree from UM in 1984. I've lived out of state or country since I was 25 years old (except for a two year return in the early 90's). I have lived in Southern California since 1998. I have one son, who graduated from a public high school. He got a high SAT score, and had good grades (mostly but not all As). He had the requisite leadership positions and volunteer work. He applied to 18 colleges and universities (public and private). He didn't apply to the super elite schools (I guess thinking that he wouldn't get in and that he didn't want to be in a super competitive environment). He was accepted at half dozen, wait listed at over a half dozen, and rejected by four or five. He was accepted by UM. Fortunately for me, he really wanted to go to a small liberal arts college, so to my relief he declined going to UM. My memory is fading but Michigan said something like 15K a year but there was a pesky asterisk thrown in. The small print said there would be a 35K a year loan. To cut to the chase he chose Vassar College in New York. I thought it would be very expensive but I didn't want to be a dream killer so I rolled with it. It turns out Vassar is a "Need Blind" school. These schools don't bounce you automatically based on your income. They "make it work " based on your family income and assets. Sure if you're super wealthy, you're going to pay full fare. Believe me Vassar has its share of the rich and famous kids going there. However over 60% of the students receive financial aid. As a matter of fact one of Malcolm Gladwell's podcasts of Revisionist History talks about Vassar and their recruitment strategy. I said I would try not to blather on. My main point is for anyone who believes that private schools are too expensive, please look up Need Blind colleges on Google. I just checked and the list I saw had 29 listed. It's all the famous ones plus a lot of smaller ones. The one thing most of them have in common is healthy endowments. It doesn't hurt to be well endowed. There are a couple of kickers though. Your child and you must be comfortable with a smaller school (probably out of state) and your child must have the test scores, GPA, extra curriculars, etc. to get in. There aren't any slackers getting into these schools. XtraMelanin, I think your childrens' story would be fascinating for these school's selection committees. I'm sure they don't get many applications from kids getting up at 4am to do farm work. Lastly, anyone curious about what I pay (and my ex). It's less than 20K per year total. List price is 65K plus extras. I made a major lifestyle change about 15 years ago. I'm sure my income isn't as high as many on here. One's income obviously factors in to what they charge. I hope this is helpful to some of you.

Damn double post.

My deal with my (step)son and his father was that I would take care of tuition but they would have to pay the fees.  His worthless father stiffed him and he paid all of the fees himself which wasn't necessarily a bad thing.

He's just transferred to another school where he gets a free ride because his stepmom works there.  The school is crap but they have transfer agreements where he could transfer to another school and also get a free ride after he attends for a year.  Richmond and TCU are on his list.  Baylor was until things came to light.

The remainder of his 529 will go to my daughter when she gets to college if he doesn't use it.  I think she won't be paying for school though.

 

529 from son's birth.
He is HS sophomore this fall.
In 3 years, my yearly contributions holding true and a consistent stock market, in state NC college tuition should be 100% paid for.
Fingers crossed...

I have about 8-9 years to prep.

When I was younger I wrongly assumed that 401k loans would be the ticket (costs grew faster than expected) but with my kids close in age it can be a tool but is not going to be the only tool.

I have the MESP but its stagnated as far as contributions trying to get some other unexpected things in order.

My parents opened their own MESP for same kids to take avantage of the state tax break so that is another tool.

I am not sure if Michigan is in the cards for either of my kids, my son may have the potential for engineering, and I will push him that way if it seems right.  That seems to be a decent value degree with medium income but without the expense load of med or law school.  You might consider me a bad parent to steer them away from "high paying" career prep but the simple reason is this, despite my efforts neither has shown me the mental toughness yet to plow thru years and years of post grad school.  I will revise my thinking if I see an awakening in the Force.

I would like my kids to have the "dorm experience" at least for 1 year, they may have to become commuters after that.  I see incredible high rise "student housing" in Ann Arbor that I feel certain rents for more than what I pay for my house, that's out.  Rooming in rental houses and possibly farther from campus may enter the equation.   I rode my mtn bike from central campus to north campus 95% of every school day of 3 years' time (first year was all central campus), winters included, so again I believe wholly in the mental toughness aspect and that working a little can provide some financial benefits 8-)

I'd like to believe my ex is going to contribute some but she bridge-burned herself out of her teaching career and doesn't seem to have one at present.  What I know of her spending habits leads me to bellieve my support payments are just an extra form of general income and not being saved for anything future-related.

Loans are certainly in the cards, I'm in the ~15 year sight range of paying my mortgage, which I would turn and help the kids knock out the debt.  It seems reasonable to me that 9+ 4 = 13 years before that can turnkey.  How its structured between me and them isn't a fully formed idea yet.

of their combat veterans and families. Free in-state college tuition for kids. Plus my children have more in their savings accounts than my wife and I do (5 digits) so far and my oldest starts kindergarten on Monday. They'll be set for college, but on their own afterwards. They'll have to work for it, but are pretty much set.

There are lots of ways to receive a college degree without going 200K-500K in debt and it's not as black and white as go to college or don't. Your future earnings is going to depend on what trade/career your in, your personality/work ethic, and a little bit of luck. If you are stretching yourself to pay for a 250K+ school that's a you problem.

We only have a 4 year old but where she will go to high school offers all kinds of cool programs to the point some kids damn near have year of college credits done when graduating high school.

We all love UM but go to a MAC (or similar type) school get a degree and your in and out for $60,000....that is what we pay for daycare now. If you don't plan on spending 250k-500K on college the plan for paying for it is simple; invest well to grow your wealth and career and then when tuition is due...wite a check.

 

I seem to be the only one on this thread smart enough to keep buying Powerball tickets.....

Hah!--and I still have TWO years to win.....next question???.