Average college savings for children

[4greatboys]

Meh, I don't know. Lots of similarities. Traverse, multiple trips to Disney, hatred of RFID, husband doing masters, talk of renovations that never actually happen, ages of kids...I can see how there might be reason to believe you are posting under another name.

and major overuse of smilies

 

[MrsPete]

If your kids study hard and get good grades, there is money out there. Many of the small private universities compete hard to get good students.

If your kid wants to go to a top tier private school away from home, sure it's going to cost $40 to $50K per year. But that doesn't mean there aren't other more affordable options. But it does require a minimum GPA, class rank and test score. That doesn't mean they have to be the class valedictorian. There is money out there for other decent students.

Respectfully, with 21 years teaching high school seniors, this has not been my experience. Instead,

- Those small private universities start with price tags so high that even with a moderate scholarship, the total cost is still higher than that of the state schools -- and often the school's reputation is less than that of the state schools.
- Fewer and fewer students are finding scholarships. The money is not "out there" in the same way it was "out there" just a few years ago; as a result, the decent students (which I interpret as strong students but not top notch -- perhaps top 25% of the class, but not top 10%) are left out these days.

Please do not assume that money'll be there. Save what you can. If you don't end up using it for college, you'll still have it -- for an early retirement, for travel, etc. Most of us have no problem finding other uses!

 

[Southernmiss]

Respectfully, with 21 years teaching high school seniors, this has not been my experience. Instead,

- Those small private universities start with price tags so high that even with a moderate scholarship, the total cost is still higher than that of the state schools -- and often the school's reputation is less than that of the state schools.
- Fewer and fewer students are finding scholarships. The money is not "out there" in the same way it was "out there" just a few years ago; as a result, the decent students (which I interpret as strong students but not top notch -- perhaps top 25% of the class, but not top 10%) are left out these days.

Please do not assume that money'll be there. Save what you can. If you don't end up using it for college, you'll still have it -- for an early retirement, for travel, etc. Most of us have no problem finding other uses!

Mrspete is dead on once again on these matters. I don't know why it's taking so long for people to understand that excellent student does not equal schools giving lots of money anymore.

Ds was that excellent well rounded student last year and did well for himself, but there were not a lot of amazing offers at his feet like people think there would have been.

 

[4orm]

We save very little for post secondary education. Luckily the tuition rates here are much cheaper than the states. Our daughter is in a private school now where the tuition is more than twice the cost of university tuition. Even with inflation I think we'll be ok when she university age. Heck, it'll probably be cheaper than we pay now. We live in a city with a many options. We will cover tuition and books. She can get loans, use summer school jobs, scholarships, if she chooses to move out and have that added expense.

 

[mom2rtk]

Respectfully, with 21 years teaching high school seniors, this has not been my experience. Instead,

- Those small private universities start with price tags so high that even with a moderate scholarship, the total cost is still higher than that of the state schools -- and often the school's reputation is less than that of the state schools.
- Fewer and fewer students are finding scholarships. The money is not "out there" in the same way it was "out there" just a few years ago; as a result, the decent students (which I interpret as strong students but not top notch -- perhaps top 25% of the class, but not top 10%) are left out these days.

Please do not assume that money'll be there. Save what you can. If you don't end up using it for college, you'll still have it -- for an early retirement, for travel, etc. Most of us have no problem finding other uses!

Perhaps the money is not out there the way it used to be. Or maybe our market is different for some reason. But I'm talking from our own experience with our 2 oldest evaluating options over the past 3 years.

But I am talking about top 10%, with a strong, but not necessarily stellar standardized test score. The schools we looked at 2 years ago when our first graduated had a very strong package for those who had the right combination of GPA, test score and class rank. And it didn't have to be strong in all 3. And it certainly didn't require the student to be Valedictorian. Two of the 3 criteria met could get a 75% reduction in tuition. 3 of the 3 would get a full tuition scholarship. As I said, this was not a top flight University, but a very respectable one locally.

I can't say if things changed in the past 2 years, because our second looked at a different group of schools.

 

[Lisa71]

The truth is a great school comes in all shapes an sizes and when I was at a community college getting my ADN for my RN we had many in pre-med from big local schools saving money on classes like microbiology. I now have my Master's and do not regret the money I saved and I got a great education. The school is NLN accredited and has an almost 100 percent board pass rate with many local hospitals wanting the graduates despite lots of BSN programs.

 

[mom2rtk]

We save very little for post secondary education. Luckily the tuition rates here are much cheaper than the states. Our daughter is in a private school now where the tuition is more than twice the cost of university tuition. Even with inflation I think we'll be ok when she university age. Heck, it'll probably be cheaper than we pay now. We live in a city with a many options. We will cover tuition and books. She can get loans, use summer school jobs, scholarships, if she chooses to move out and have that added expense.

Maybe I just never got to experience the "glory days" where schools were had lots of money for students. And I don't mean to imply that people should assume enough money will be there that they don't save.

But I was SHOCKED at the number of my sons' classmates who had parents assume there was no money available, and never pushed their kids to apply to colleges at ALL because they had no money themselves and they just assumed they could not afford it. It really makes me just want to sit down and cry at the wasted potential I see in some of those kids.

 

[mom2rtk]

The truth is a great school comes in all shapes an sizes and when I was at a community college getting my ADN for my RN we had many in pre-med from big local schools saving money on classes like microbiology. I now have my Master's and do not regret the money I saved and I got a great education. The school is NLN accredited and has an almost 100 percent board pass rate with many local hospitals wanting the graduates despite lots of BSN programs.

Here in Missouri the kids have a great deal available to them. Lottery proceeds are used to fund what is called the A+ program. Students enrolling and completing a minimum number of community service hours can get free tuition at the local community college. Our kids didn't take advantage because much of the money that is available to students disappears after that initial freshman year. So it can be cheaper to take the deal from the get go at the 4 year school than to transfer in 2 years later.

 

[ktmo]

We set up 529 plans for our two girls. For DD#1 hers was set up by the time she was 1 and DD#2's was set up almost right away. We put money away each month. Combined it is about $300 per month. My dad also contributes money for their birthdays and Christmas ($2000 per kid per year). They are 8 and 6. Right now we have about $60,000 saved.

We also plan on having our house paid off by the time they go to school, so we should have it covered. Fingers crossed.

 

[4orm]

Maybe I just never got to experience the "glory days" where schools were had lots of money for students. And I don't mean to imply that people should assume enough money will be there that they don't save.

But I was SHOCKED at the number of my sons' classmates who had parents assume there was no money available, and never pushed their kids to apply to colleges at ALL because they had no money themselves and they just assumed they could not afford it. It really makes me just want to sit down and cry at the wasted potential I see in some of those kids.

Both my husband and myself didn't have any money from our families. We just saddled up and got student loans - like more than half of our friends. So many people I know had no help going into post secondary but most took the load on themselves and got student loans. I don't see anything wrong with that. If we didn't have the money to help our daughter I'd still expect her to go and take something unless she was doing one of those rare career paths that don't require it. Not only are there scholarly bursaries but also student in need funds. I received some of the latter myself. Education is where it's at if it's where you want to be.

 

[mom2rtk]

Both my husband and myself didn't have any money from our families. We just saddled up and got student loans - like more than half of our friends. So many people I know had no help going into post secondary but most took the load on themselves and got student loans. I don't see anything wrong with that. If we didn't have the money to help our daughter I'd still expect her to go and take something unless she was doing one of those rare career paths that don't require it. Not only are there scholarly bursaries but also student in need funds. I received some of the latter myself. Education is where it's at if it's where you want to be.

I agree. I was SHOCKED (did I say that already? ) at how many parents let their kids just hang out the first year out of school "looking for a job". Mostly that's a euphemism for playing video games and sleeping all day. My kids knew from the get go that was never going to fly.

My parents didn't have the money to help me out either, so I also worked and took loans. But even if I didn't have the resources to help my own kids, I would be doing the research and finding the information to help them. These families really do not have a lot of resources, so their kids are the very ones that would have the most need based aid available to them. And most of these are very bright kids.

Unfortunately, this is an older blue collar area. And there just is not the educational imperative here like in other areas of town. Had I known then what I know now about how these kids would end up, I would have talked to some of these kids myself. But man, it's hard enough navigating all of this with our own.

We have one just finishing his sophomore year at a small local private university studying to become a CPA. The second is heading away to school in the fall to study engineering. I'm tired just from getting this far.

 

[csmommy]

Oh course, you are penalized by the schools if you have saved a lot in your 529 plan( over $10,000). The less you have, the more you get in need based aid. Not only that, the more you child has saved from the jobs he/she has worked the more the school expect them to pay towards their school & at a higher rate than their parents (anything over $3,000 the child is supposed to contribute $0.30 on the $1)! So the moral of the story is don't teach your children to be responsible, get a job & save for their college spending money AND don't save a dime for your kids education & if you do either stuff the money under your mattress or have the accounts in grandma/grandpa's name.

 

[imsayin]

Respectfully, with 21 years teaching high school seniors, this has not been my experience. Instead,

- Those small private universities start with price tags so high that even with a moderate scholarship, the total cost is still higher than that of the state schools -- and often the school's reputation is less than that of the state schools.
- Fewer and fewer students are finding scholarships. The money is not "out there" in the same way it was "out there" just a few years ago; as a result, the decent students (which I interpret as strong students but not top notch -- perhaps top 25% of the class, but not top 10%) are left out these days.

Please do not assume that money'll be there. Save what you can. If you don't end up using it for college, you'll still have it -- for an early retirement, for travel, etc. Most of us have no problem finding other uses!

I agree that you shouldn't count on scholarship money, but there are a few strategies for the good students. Apply to schools where you are in the upper 25% of the incoming class. This may mean going to a less prestigious school, but it increases your chances for money. Look at out of state schools that have generous scholarships. University of Alabama has scholarship money for students with an ACT of 27, and it increases the higher your test score is.

 

[csmommy]

I agree that you shouldn't count on scholarship money, but there are a few strategies for the good students. Apply to schools where you are in the upper 25% of the incoming class. This may mean going to a less prestigious school, but it increases your chances for money. Look at out of state schools that have generous scholarships. University of Alabama has scholarship money for students with an ACT of 27, and it increases the higher your test score is.

I completely agree. DS is going to a small, private LAC in DC with a great reputation for less than a SUNY. Smaller classes, better opportunities, better internships & a very nice FA package. Most of the smaller LAC's DS applied to offered him very nice money & his scores weren't the greatest - 87% average, 27 ACT & 1990 SAT, very nice EC's & great letters of recommendation. You just need to know where & how to look.

 

[usd2bmd]

My daughter is not a strong student...she never has been. She has a 504 plan in place that will follow her. We have discussed college and at least for the first two years she will attend a local community college. She feels more comfortable doing this while she gets used to college and knows that it will greatly decrease the amount of debt she incurs. She can get an associates degree and start working if she chooses or move on to a better 4 year school and get a 4 year degree.

We have also discussed the possibility of going to a trade school and learning a trade.

I understand the need for higher education...i just find it a little ironic and somewhat idiotic that it is so ridiculously expensive and most kids graduating from high school have no idea what they want to be when they "grow up".

There was actually a story on the evening news a few nights ago about the number of US students going to college in Canada because it's so much more affordable. I just think that at some point it has to become more affordable to everyone to get a higher education...

 

[MrsPete]

Mrspete is dead on once again on these matters. I don't know why it's taking so long for people to understand that excellent student does not equal schools giving lots of money anymore.

Ds was that excellent well rounded student last year and did well for himself, but there were not a lot of amazing offers at his feet like people think there would have been.

Thanks, I'm only reporting what I'm seeing after two decades of teaching.

Perhaps the money is not out there the way it used to be. Or maybe our market is different for some reason. But I'm talking from our own experience with our 2 oldest evaluating options over the past 3 years.

But I am talking about top 10%, with a strong, but not necessarily stellar standardized test score. The schools we looked at 2 years ago when our first graduated had a very strong package for those who had the right combination of GPA, test score and class rank. And it didn't have to be strong in all 3. And it certainly didn't require the student to be Valedictorian. Two of the 3 criteria met could get a 75% reduction in tuition. 3 of the 3 would get a full tuition scholarship. As I said, this was not a top flight University, but a very respectable one locally.

I can't say if things changed in the past 2 years, because our second looked at a different group of schools.

It's true that the money isn't out there like it used to be, but the MAJORITY of the top 10% will not get large scholarships.

Other factors come into play. For example, what the student plans to study is just as important as his or her grades. My Nursing major did pretty well for herself (and she had a great GPA). I anticipate that her sister, who will probably study Business, will not get nearly as much money. Scholarships for Business majors just don't exist in the same number as those for nurses.

And other factors play into it as well: The quality of the school offering the scholarship, the number and quality of other applicants (every year isn't equal), the students' parents' income (which you think wouldn't matter on a merit-based scholarship . . . but often does), even race and nationality can come into play. And that's hardly a comprehensive list! It's a complicated topic, but the right answer is, SAVE. If your child does get a scholarship, be happy.

Maybe I just never got to experience the "glory days" where schools were had lots of money for students. And I don't mean to imply that people should assume enough money will be there that they don't save.

But I was SHOCKED at the number of my sons' classmates who had parents assume there was no money available, and never pushed their kids to apply to colleges at ALL because they had no money themselves and they just assumed they could not afford it. It really makes me just want to sit down and cry at the wasted potential I see in some of those kids.

I advise my students to TRY for the money, but at the same time create a plan that includes NO financial help whatsoever. If they do this, they're covered either way. As a parent, I encouraged my oldest to do the same, but I always kept her mindful that the financial reach schools were just that -- a reach, and it would be a mistake to get her heart set on them.

In our area some of the most expensive schools aren't academically better; in fact, some of our least expensive schools are among the best. The cream-of-the-crop example, of course is UNC-Carolina, which is consistantly listed as one of the best educations in the nation . . . for about 15-17K a year (total cost, not tuition only).

I agree that you shouldn't count on scholarship money, but there are a few strategies for the good students. Apply to schools where you are in the upper 25% of the incoming class. This may mean going to a less prestigious school, but it increases your chances for money. Look at out of state schools that have generous scholarships. University of Alabama has scholarship money for students with an ACT of 27, and it increases the higher your test score is.

This is, indeed, a good strategy, and it'll work for some students -- but it's not a guarantee, which is why I emphasize to my students who have their sites set on big-ticket schools that they need to craft the Dream Plan and the Realistic Plan.

Right now I have one student who's kind of screwed herself over by NOT doing this -- and this doesn't really fit with your comment above, but the girl popped into my mind:

She's a very good student with good numbers in every category, probably just barely in the top 10%. She applied to only three schools: One expensive out-of-state school plus two uber-competative in-state schools (UNC-Carolina and Duke). All three were stretches. Her ONLY admission came from the expensive out-of-state school, yet she's recieved NO scholarship money. She has financial need, and she was offered a medium-sized Pell Grant, but mostly loans. She went into this process expecting schools to fall all over themselves handing her offers on a silver platter, and it didn't happen. It's too late to apply anywhere except the community colleges now (and she very much sees those as "beneath her"), yet she can't afford the school that accepted her. I don't know what she's going to do, and I'm not sure she isn't approaching Depression over the situation. She was tremendously overly optimisitic and completely ignored the need to think of a Realistic Plan.

One other comment: In my experience, most small-to-medium scholarships are not school-based. Rather, they come from independent groups not attached to any particular university.

 

[imsayin]

Right now I have one student who's kind of screwed herself over by NOT doing this -- and this doesn't really fit with your comment above, but the girl popped into my mind:

She's a very good student with good numbers in every category, probably just barely in the top 10%. She applied to only three schools: One expensive out-of-state school plus two uber-competative in-state schools (UNC-Carolina and Duke). All three were stretches. Her ONLY admission came from the expensive out-of-state school, yet she's recieved NO scholarship money. She has financial need, and she was offered a medium-sized Pell Grant, but mostly loans. She went into this process expecting schools to fall all over themselves handing her offers on a silver platter, and it didn't happen. It's too late to apply anywhere except the community colleges now (and she very much sees those as "beneath her"), yet she can't afford the school that accepted her. I don't know what she's going to do, and I'm not sure she isn't approaching Depression over the situation. She was tremendously overly optimisitic and completely ignored the need to think of a Realistic Plan.

I think I know the same person . You need to make sure you have a financial safety school! Colleges are now required to have a financial calculator on their websites. You can put in your info & see what your financial obligation will be. You really need to apply to a school that you can get into and afford! No harm in trying for the scholarships, but they are not a sure thing.

 

[Fyrefly]

A lot of it is luck of the draw too. I got $1000 from the state school I ended up attending and $1000 from the engineering department. I got another $5000 from local scholarships, a lot of it from the local paper's scholarship. I didn't even manage to get one year's worth of tuition from scholarships.

I was class valedictorian, National Honors Society, Theatre Club, spent my last two years taking every AP class my school had available, etc. Everyone said I would be just fine but I really wasn't. Middle class family, need-based aid was not happening but I think if my dad hadn't gotten a long-overdue promotion by the time I got in I would have a lot of debt even going to the "cheap" school.

By contrast my boyfriend was at the magnet school in a richer county and much more "average" by comparison but the state school recruited from there. He got a full ride plus room and board and a textbook allowance. SAT score/AP comparison we are just about the same with his math scores better than mine and my writing/verbal much higher but I went to a school in a poorer district without guidance counselors who actively courted universities.

You really can't count on your kid getting money. I went to school in a good district and I never knew how many internal politics were involved that were completely out of my control.

 

[MrsPete]

You really can't count on your kid getting money. I went to school in a good district and I never knew how many internal politics were involved that were completely out of my control.

Yes, you've summed it up well.

- You can never control who else applies for the scholarship and how well qualified that person may be. You may have great grades and well-rounded extras . . . but someone else may have a little bit more. Or that person may appear better "on paper" to the scholarship committee.

- You can never control how many scholarships are available that are suitable for your experiences, your major, your intended school, your family circumstances, your parents' financial status . . . the list could go on. Some people just have more options available to them, and you can't change who you are.

- Final decisions are made by a wide group of people (some of them at school, others from the community), and not all of them are fair-minded. Some of them come in already feeling that they want to give Scholarship A to a certain person or to a person who fits certain criteria. I've heard crazy things; for example, "I know that your candidate was very strong, but last year's winner came from your school, and the committee kind of wanted a winner from another school this year." How's that fair? But what can you do?

- Scholarship committees aren't always completely honest about who is really going to win -- but they take applications from "everyone" just to appear fair. You, the applicant, can never know this, but occasionally your high school teachers know the real score.


What you CAN -- and should -- control:
- Search for scholarships and apply for many. My olde
st daughter applied for perhaps 40, and she won two (which will pay approximately 50% of her total education). The other people applying for scholarships are also top-notch; expect to hear "Sorry, but no" more often than you hear, "Congrats!"

- Keep up with your scholarship dates. If you've missed the deadline, do not bother.

- Complete your forms thoroughly, putting your best foot forward at all times. Have someone proofread for you.

- Be sure to turn in everything, and place it all in one package. For example, if the scholarship requires a printed transcript, BE SURE to staple yours to your application. Do not try to "catch it up later" to your paperwork, and certainly do not assume that "it'll be okay without it".

- Choose a few teachers who've known you a while, in whose class you excelled, and ask them EARLY to write you a recommendation. Give those teachers a list of your plans, grades, extra-curriculars -- this'll help them write you a good letter. Be clear with them on whether they should return the letter to you in a sealed envelope, send an email, or mail it themselves (in the addressed, stamped envelope you've provided). After the teacher's written you the letter, THANK HIM OR HER. A note is nice. Remember that this person has done you a favor -- teachers don't have to write recommendations for you.

- Type when possible. It shouldn't matter, but when scholarship committees are reading dozens of applications, those that are easier to read will be considered a little more highly. The graders are human.

 

[tzolkin]

Mrspete is dead on once again on these matters. I don't know why it's taking so long for people to understand that excellent student does not equal schools giving lots of money anymore.

Ds was that excellent well rounded student last year and did well for himself, but there were not a lot of amazing offers at his feet like people think there would have been.

This was my experience when I went to college as well.

I got an incredible financial aid package at a very expensive school (cost now is over $50K/year and was approaching that during my time).

People assumed that I got a "free ride" because I was smart. While flattering, it really wasn't the truth. Being a top student got me into the school, but being "lucky" enough to come from a large poor family is what got me the financial aid. Some top universities, mine included, offer no merit-based aid. The assumption is that all accepted students are intelligent, so they reserve financial aid for those who cannot otherwise afford to attend.