Advice for College Savings for my DS3

[DawnM]

I will pass along that information. Thanks.

Dawn

Regarding the 10 percent penalty for not using the money for college.......

It is only on the "growth" portion of your balance.

Example..............I put in 8000 bucks of my money and it has a balance of 10,000 when my kid hits 18. If I choose not to use the money for her education I get my 8000 bucks back free and clear, but I will owe taxes on the 2000 dollar profit and a 10 percent penalty on the 2000.

 

[FINFAN]

You should listen to Granny. Hope your DS gets a REALLY good job and can support you in your old age. Remember kids can always borrow for school, but you can't borrow for retirement.

but wait, there is another thread on here where a girl is getting blasted for having high college debt...basically, OP, live like you are homeless for the next 20 years to cover both college and your retirement or you will be told you did all the wrong things.
We had our kids college $ in a mix, our oldest started college in 2008...right when the market tanked, taking the equivalent of 1 1/2 years schooling with it. So, even tho we did what the esperts said, we still got hit, and now are paying in essence for the second time for college for DD, since the first savings went *poof*. Do your best, I would maybe add $100 a month to your amount you set aside but have it in a seperate account as a "cushion" for any unexpected pitfalls.

 

[prncess674]

but wait, there is another thread on here where a girl is getting blasted for having high college debt...basically, OP, live like you are homeless for the next 20 years to cover both college and your retirement or you will be told you did all the wrong things.
We had our kids college $ in a mix, our oldest started college in 2008...right when the market tanked, taking the equivalent of 1 1/2 years schooling with it. So, even tho we did what the esperts said, we still got hit, and now are paying in essence for the second time for college for DD, since the first savings went *poof*. Do your best, I would maybe add $100 a month to your amount you set aside but have it in a seperate account as a "cushion" for any unexpected pitfalls.

I think you missed the point of the previous thread. Whether Mom & Dad or the student is paying for college via loans, then you need to be frugal in how you invest in education. The writer of that article didn't research her salary options when taking out 100K in loans for a job that would likely only pay 30 or 40K in a very high COL city. I don't reccomend anyone dropping 100K if you can't afford it.

 

[FINFAN]

I think you missed the point of the previous thread. Whether Mom & Dad or the student is paying for college via loans, then you need to be frugal in how you invest in education. The writer of that article didn't research her salary options when taking out 100K in loans for a job that would likely only pay 30 or 40K in a very high COL city. I don't reccomend anyone dropping 100K if you can't afford it.

I didn't miss the point , I know the author was stating she made uneducated, (I might even say info she did not care to be bothered with) decisions that are now costing her big-time. I also admire the girl for offering her experiences to help others and getting herself on a responsible path to do what she needs to. What am I not getting?
If the OP of this thread needs a secure amount, having it up front , not needing loans or options so there is no debt, at the speculated cost for a child who is 3 now? Saving $325 a month is going to be tight, and I posted to have a savings cushion to cover the "what if". No one has a crystal ball on what their child will choose for a career, if their child will drop out, if they will win the lottery. You plan for the norm, and add a little extra if you can. These days, between the economy and rising college costs it is very, very difficult to have the amount in full ahead of time.

 

[LoveBWVVBR]

Just chiming in to say that you shouldn't think that "all she will need is room and board" means it will be inexpensive for you. I have the prepaid FL plan, bought and paid before the differential so we're exempt from that. We did tuition and local fees, so all we need is "just room and board" too. DD18 starts college next fall. Well the room and board is double the tuition! So sure the prepaid plan will send the college the $5,000 per year that in state tuition normally costs and I get to come up with the $9,000 per year for room and board. I just never really realized how much room and board costs and that it is so much more expensive than the tuition. I thought "just room and board" would be cheap.

Yikes We have 4 years of tuition, 4 years of fees, and the differential for the 1 child that needed it. I did buy 1 year of dorm for each child, but assumed that after that 1st year they may opt to live off-campus. We do save in a 529 for the stuff that will remain uncovered, but honestly I didn't think that it would be THAT much I hoped that there would be a decent amount left in the 529 to cover grad school...maybe not though. EEEK!

 

[cruisnfamily]

Yikes We have 4 years of tuition, 4 years of fees, and the differential for the 1 child that needed it. I did buy 1 year of dorm for each child, but assumed that after that 1st year they may opt to live off-campus. We do save in a 529 for the stuff that will remain uncovered, but honestly I didn't think that it would be THAT much I hoped that there would be a decent amount left in the 529 to cover grad school...maybe not though. EEEK!

I know, crazy right!
We have the bolded items too, so on top of that we'll pay:

Fall 2011 at UF: Housing $5,300, Food $3,340=$8,640
Fall 2011 at FSU: Housing $5,866, Food $3,440= $9,306
Fall 2011 at FGCU(where DD will be attending):Room & Board combined $8,894