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View Full Version : Just paid off DD's college plan!!


lillygator
05-21-2007, 10:45 AM
I am so excited!! :banana:

Hedy
05-21-2007, 10:46 AM
Awesome!

StephMK
05-21-2007, 10:49 AM
Congrats & way to go!!! :banana:

MissyDVC
05-21-2007, 11:21 AM
Wow, that's great :thumbsup2

nowellsl
05-21-2007, 12:19 PM
If you did the FL pre-paid plan you will be sooooo glad you did! My DD is almost done with college and I haven't had to pay anything. She also got a bright futures scholarship and that has paid for the books, etc. Be sure to get the fee plan too!

lillygator
05-21-2007, 01:20 PM
If you did the FL pre-paid plan you will be sooooo glad you did! My DD is almost done with college and I haven't had to pay anything. She also got a bright futures scholarship and that has paid for the books, etc. Be sure to get the fee plan too!
wow - can you tell me what the fee plan includes? Thanks!

winnyis
05-21-2007, 01:43 PM
I bought the FL prepaid plans for both my kids. I got the tuition, fee and Room and board plans for both kids. DD's I paid off in a lump sum and DS's I am making payments on. It really sounds like you cant lose with this plan and the fact of knowing they are guaranteed a college education without going into debt is really nice. My kids are both really good students so Im hoping that they will get Bright Futures also which will pay for anything that the plans I bought dont.

lillygator
05-21-2007, 02:03 PM
we did the four year FL pp university plan...you can add dorm up until 8th grade (my eldest is 4)....we have the Fl 529 plans for both girls and when DD goes to K we'll start the plan for our second DD. (we did the 5 year payment plan...it shaved off around $4k from the monthly to 18)....

winnyis
05-21-2007, 02:20 PM
we did the four year FL pp university plan...you can add dorm up until 8th grade (my eldest is 4)....we have the Fl 529 plans for both girls and when DD goes to K we'll start the plan for our second DD. (we did the 5 year payment plan...it shaved off around $4k from the monthly to 18)....


How are your 529's doing??? I had 529's from NJ for both my kids since they were 8 weeks old (they are now 12 and 9) and finally this year we liquidated them because they were doing so poorly. They didnt have nearly the funds they told us they would when we opened them all those years ago. Only bad thing is that FL Prepaid couldnt accept a direct rollover from the 529 so I may have to pay capital gains on the money the plans did make but it was so much of a better deal in the long run we figured we would take the risk.

I would have loved to have paid both plans in lump sums but didnt have entire amount and the 5 year plan for DS would have been almost $700 a month so we bit the bullet and paid a little more with the monthly. BUT still overall - $40K for a college education is a great deal, especially with the choice of schools the kids can pick from UF, FL State, USF

winnyis
05-21-2007, 02:21 PM
Lilligator - couldnt agree more with your profile - Siesta Key sand really is the best in the world. DH and I love it there and go as much as we possibly can.

sarahlovesmickey
05-21-2007, 02:22 PM
Do all states do this pre pay thing? And what if your child doesn't go to the state university...or college for that matter??

winnyis
05-21-2007, 02:32 PM
Do all states do this pre pay thing? And what if your child doesn't go to the state university...or college for that matter??

Not sure if all states do it or not but if my kids get a scholarship to college or decide to go out of state - I can get all of the money I paid in back from FL prepaid.

lillygator
05-21-2007, 02:43 PM
How are your 529's doing???

I would have loved to have paid both plans in lump sums but didnt have entire amount and the 5 year plan for DS would have been almost $700 a month so we bit the bullet and paid a little more with the monthly. BUT still overall - $40K for a college education is a great deal, especially with the choice of schools the kids can pick from UF, FL State, USF

the 529's are doing ok, not all that great but I am only putting in small amounts currently. I would have loved to do the lump sum, but could not afford it....the 5 year pay off was much better and hopefully that's what will do for our other DD.

nowellsl
05-21-2007, 02:45 PM
wow - can you tell me what the fee plan includes? Thanks!

This is a local fee plan that the University charges in addition to tuition. It's so much per credit hour. I'm not sure how much it is since we haven't had to pay it, but you can bet it will going up each year (better to lock in the rate now!) It pays for things like the health center, transportation (city bus) etc.

HeatherC
05-21-2007, 03:05 PM
Can you explain this to me a little more? We are in Massachusetts and have 529's for the kids. Never really understood how the UPLAN (Massachusetts plan) actually works. I know you prepay tuition, but do you pay all 4 years at once on a payment plan?

In other words...if college is $30,000 a year now and you sign up...do you pay them installments for $120,000? We are pretty good at saving, but with our other bills and 3 kids I can't see adding another $360,000 to our bills.

Are my numbers way off...or am I just confused.

My kids are 10, 8 and 6 so we are definitely getting closer to having to pay for it.

HeatherC

lillygator
05-21-2007, 03:24 PM
http://www.florida529plans.com/

HeatherC
05-21-2007, 03:30 PM
Thanks for the link, but I still don't know how much money we are talking. How much is a credit.

HeatherC

DawnM
05-21-2007, 04:42 PM
There are too many "ifs" for me to do this.

I have no idea where we will live when my kids go to college.
What if my kids get a full scholarship somewhere else? Do I get my $$ back?
What if my child wants to go to a private college?
What if my child can't go to college (accident or whatever)?
What if they choose Duke over UNCC and it costs much more?

These questions are very real for us because I attended a private college and DH had a full ride scholarship, so pre-paying for specific colleges just doesn't make sense.

Dawn

lillygator
05-22-2007, 09:06 AM
well it isn't something for everyone that is for sure. For us though it makes a lot of sense and if the girls get a scholarship or choose to go out of state we will get our money back (sans interest). Not knowing how our financial picture will be in the future it gives us peace of mind that we are able to do this now.

dcfromva
05-22-2007, 10:21 AM
I am so excited!! :banana:

lillygator,
Congratulations! :thumbsup2 :yay: :yay:

We did the same for DS and it was a huge feeling of relief to know at a minimum his tuition and fees would be covered for an in state school.
DS just finished his first year of college (at an in state college) and the plan worked like a charm!

-DC

sarahlovesmickey
05-22-2007, 01:31 PM
How would I find out if my state does this??? Who do I contact?? So, say the state university is $15,000 now, do I make payments on a 4 year program which would be like $60,000??? Can someone clear this up for me?...my mind is still in Disney world!!!

dizcrazy
05-22-2007, 02:22 PM
There are a lot of ifs with pre-paying and also with the 529 BUT I will add that every financial planner I know (four of them, actually) highly recommend 529 plans. and three of those planners are using 529 plans to save for their kids future.

I dont "overfund" my DD's 529, meaning, I am not killing myself now to make sure that I dont have payments due in college. Instead, I am investing more in my retirement, but am also having money automatically deducted each month so college wont be a burden in the future.

If she doesnt want to go to college - I'll deal with that if it happens. In my family, everyone is expected to go to to college and quite frankly, I think that the job market also expects college degrees.

if she gets a scholarship - then :banana: She can use the money for other college expenses like books or maybe towards her masters. or i can give or "sell" the money to a close relative.

BTW OP - congrats!!!! What a great feeling!

lillygator
05-22-2007, 02:25 PM
How would I find out if my state does this??? Who do I contact?? So, say the state university is $15,000 now, do I make payments on a 4 year program which would be like $60,000??? Can someone clear this up for me?...my mind is still in Disney world!!!

what state do you live in? The way the FL one works is you are locking in the price of the tuition now -- this years rate. Right now for my 2 year old a 4 year university plan would be $11,707.16 lump sum payment or $13,064.15 with monthly payment for 5 years or in excess of $17k if paid per month until DD graduates.

HeatherC
05-22-2007, 03:34 PM
I would love to know the cost...not your exact numbers per se, just a general number. Like I mentioned....is it something like $30,000 a year (if that is the cost for the school) x 4 years for a total of $120,000. And how is that paid off...monthly like a mortgage? Do you finance the whole thing or do you pay what you can each month?

Anyone that can answer this, I would truly appreciate it.

Thanks so much!
HeatherC

lillygator
05-22-2007, 03:39 PM
the cost is in my above post for a 4 year university tuition plan only (no dorm, etc)

ETA - what state are you in?

The Florida plan offers you to pay in full, make monthly payments for 5 years or make payments monthly payments until the child goes to college....
the lump sum would be above...5 year monthly would be aroun $235 and the regular monthly would be $80-$90.

ZPT1022
05-23-2007, 12:18 AM
do all states do something like this or is it just a FL thing? can it be transferred between kids in the same family?

grlpwrd
05-23-2007, 12:52 AM
We have Virginia 529's for all 5 of our kids.

For those inquiring about plans, please be sure to check www.savingforcollege.com . There are different needs and variables to consider and there is so much good info on that website.

Chris
05-23-2007, 07:38 AM
Way to go!!!

HeatherC
05-23-2007, 10:11 AM
Lillygator thanks for the link and info. I did wind up calling on Massachusetts plan and found out that our state's program doesn't work the same way.

Here we have to buy "tuition certificates" which cover a portion of the tuition each year. It is very confusing, and you can't pay monthly payments for like 5 years and have college paid. (You can do that on your own of course...just not through the UPlan).

And...they only let you make a payment May- June of each year. So you still have to make your own monthly payments into a separate account and then transfer it each year to them or make one lump sum payment). If I could pay each month for 5 years or so and be done, that would be great. Unfortunately, Massachusetts plan doesn't work that way.

And it is hard to tell what you need to save each month since there is something like 50 schools included. That includes your local community colleges as well as some of the top schools like Boston University which is like $35,000 a year.

Congrats to you!

HeatherC

isyt
05-23-2007, 11:10 AM
You guys wanna laugh!!! I said let me google NJ and this thread was the first thing to pop up!!!! :rotfl: I didn't know how important Disboards were :rotfl2: !!

dcfromva
05-23-2007, 11:53 AM
do all states do something like this or is it just a FL thing? can it be transferred between kids in the same family?

ZPT1022,

529 plans can be transferred between kids in the same family.

Not all states offer prepaid plans, but just about every state has a 529 plan.

It looks like your state allows a deduction for contributions to the state 529 plan From Saving for college.com website: (http://www.savingforcollege.com/529_news/?page=plan_news&plan_news_id=662)
"Connecticut's governor has signed legislation providing a Connecticut state income tax deduction for contributions into Connecticut's 529 plan of up to $5,000 per year for an individual and $10,000 per year for a married couple filing jointly. The deduction is first available for the 2006 tax year. Contributions in excess of the annual cap are able to be carried over for up to five successive years."

Link to the CT 529 plan. (http://www.aboutchet.com/)

There are a lot of 529 plans available. There are many variables in deciding which one is right for you. If your state doesn't offer a pre-paid plan (or you are totally sure your kids will not go to an in state college), then you can select just about any other plan that meets your investment strategy and has low expenses. Also, in that equation you have to weigh the value of the state tax deduction for participating in the state 529 plan.

There are lots and lots and lots of 529 options. You can get into funds that invest in the Vanguard 500 or funds that only invests in bonds. Also, many states have age based portfolios which have the objective of maximizing returns while dampening the wild swings in values (they invest in a range of securities to do this becoming more conservative as the child gets older).

-DC

dcfromva
05-23-2007, 12:02 PM
Only bad thing is that FL Prepaid couldnt accept a direct rollover from the 529 so I may have to pay capital gains on the money the plans did make but it was so much of a better deal in the long run we figured we would take the risk.


winnyis,
Here is a reference from theIRS website (http://www.irs.gov/publications/p970/ch08.html#d0e10470) on rollovers:
"Rollovers
Any amount distributed from a QTP is not taxable if it is rolled over to another QTP for the benefit of the same beneficiary or for the benefit of a member of the beneficiary's family (including the beneficiary's spouse). An amount is rolled over if it is paid to another QTP within 60 days after the date of the distribution. "
(Hopefully you rolled over into the FL plan within 60 days of your distributions.)

-DC