How much do you save for your kids' college?

[LisaR]

• We put in on $50 per month.
• Grandparent puts in money at each birthday, Christmas and all of his change saved for the year
• I fund my 401K over the max match amount (I want to be able to not work when I retire)
• My DH works at a University and the kids will get 50% of tuition paid. We have told them, we will help pay the difference. If they choose to go to another school, they will only get the difference, then they are on their own for the res
• They have to live at home
• Stay unmarried
• Have no babies
• Work in the summer
  
  

With DH working at a university he sees the kids whose parents pay for it all and they don't seem to care as much and have an entitlement mentality.

My parents have a great income. Far more than I will ever make. I worked through college, didn't finish (until a few years ago), and appreciated the degree that I WORKED for much more.

Also, off topic, but working in corporate America I have also told my kids that I have no issues if the decide to not go the college route provided that they find a job that can support them. My company may be a dying breed, but I have associates making $20-40 an hour without degrees, who do not have to take their work stress home with them each night. I have told them when the time comes they will need to weigh what makes them happy.

My friend took a job a few years ago at a private college in our area. It is a very good college and always top rated. She works in the cafeteria. Her kids get 90% off tuition! I considered getting a job there myself just for the great deal on tuition. Unfortunately, neither of my kids want to go there.

 

[LisaR]

For our son, he was offered a scholarship which amounts to the Presidents or whatever it is called at each particular school based on ACT/SAT scores. It is my understanding that students in the top10% of grad class with these top scores automatically get those types. It should be in the admission guidelines.

But how do you know if your child has the best grades compared to those that have been accepted? If thousands of people apply, I'm guessing my DD's scores, while good enough for acceptance, won't be good enough for a full scholarship. Maybe I'm wrong. She will start applying in a few months so I guess we will find out in the late winter/early spring, from what I have heard.

 

[crisi]

For our son, he was offered a scholarship which amounts to the Presidents or whatever it is called at each particular school based on ACT/SAT scores. It is my understanding that students in the top10% of grad class with these top scores automatically get those types. It should be in the admission guidelines.

I DID get one like that, however, at the time it was income weighted (I don't know if it still is) so I got $200! It was 30 years ago, so it may be more now.

(I did get a free ride my last year for student leadership, I really can't complain).

The other issue with Merit Scholarships is that sometimes you can choose a school that attracts students who aren't quite at the level your student is. They want to entice you to come to their school so they offer merit money. It worked in our case - DD18 got $13,500 a year for four years at a school that charges about 42K for tuition, room and board. That's 54K in merit aid and we did not apply for it nor did we reveal any financial information.

However, be careful here. You still have a $28k a year bill, and that is a lot more than a lot of state schools charge if you are lucky enough to have a reasonable college system in your state. A friend's daughter just took one of those deals - it will still be $16k a year more than the state school that they'll be making up in loans. But she really liked the private school a lot more.

 

[disykat]

Many mid-level private schools offer automatic merit to over a certain GPA. I know my alma mater does. Usually the top one gets it down to just slightly above what good area state colleges cost.

Some schools (most?) then have their top scholarships which are more of a competition. Often there's a financial component to those.

My son's college has pretty good merit packages to a select few students, but they MUST have financial need to get them. However, it's made clear from the beginning of the process that only those students should apply.

I've been on scholarship committees and it makes me wonder if it's a new scholarship without all the kinks worked out if they didn't make the criteria clear before opening the application. Huge oversight!

 

[DVCLiz]

However, be careful here. You still have a $28k a year bill, and that is a lot more than a lot of state schools charge if you are lucky enough to have a reasonable college system in your state. A friend's daughter just took one of those deals - it will still be $16k a year more than the state school that they'll be making up in loans. But she really liked the private school a lot more.

Yep, 14K a semester. We have an excellent public college system in NC, but if DD couldn't go to Carolina (and she didn't have a prayer of getting in there) we weren't interested in any of the others more than the small private school she chose.

 

[DVCLiz]

If I am understanding you correctly, this is what my DD is hoping to do. We have 3 or 4 state universities that everyone and their brother wants to go to. Some of our other state universities are shunned for whatever reason (I've researched and I can't figure out why). It looks to me like the vast majority of people that are applying to these schools are the ones that couldn't get into our "top" schools. DD has the GPA & ACT score to get into any of our universities but if she applies to the ones that aren't as popular, she may have higher scores than many others applying. I am hoping that means she would have a better chance at the presidential scholarship. I don't know if it really works that way, though.

Yep - I'm talking about "dumbing down" a little. By that I mean a bright student chooses a school the next level down from what he could conceivably get into. Still a good school with strong academic programs - in some cases better programs in specific areas than the "better" school but without the reputation, etc. Students get excellent educations at better prices.

You have to be totally focused on your student and unwilling to play any games with your friends, etc. I have some friends who are so focused on getting their child into the "right" school that this would never fly with them. Of course, several of them are dealing with some major disappointments this summer and have ended up going to second or third choice schools anyway.

 

[DVCLiz]

But how do you know if your child has the best grades compared to those that have been accepted? If thousands of people apply, I'm guessing my DD's scores, while good enough for acceptance, won't be good enough for a full scholarship. Maybe I'm wrong. She will start applying in a few months so I guess we will find out in the late winter/early spring, from what I have heard.

Short answer - you don't. But you can get a sense of where she will fall compared to the average acceptance by looking on the website for average SATs, etc. Your college guidance counselor should have all of that information for each school. We had a list of all the colleges our students usually applied to with each one listed by "tier" - top tier, second and so on. Within each tier you sort of knew which schools were legitimately in that level and which had squeaked in, etc.

 

[allison443]

But how do you know if your child has the best grades compared to those that have been accepted? If thousands of people apply, I'm guessing my DD's scores, while good enough for acceptance, won't be good enough for a full scholarship. Maybe I'm wrong. She will start applying in a few months so I guess we will find out in the late winter/early spring, from what I have heard.

If you look on the schools' websites, usually under admissions most will list their statistics for accepted students. Usually the ones I've seen will give a breakdown of what the scores were for the top 25%, top 50%, etc. I think this info might also be on collegeboard.com, or US News guide to college, etc. This info is good for determining if a school is a safety, a match or a reach. It can also help with looking at your chances for scholarships.

Be aware that some schools give no merit aid-only need-based aid.

 

[LisaR]

Thanks for the info. I've been scouring the universities websites and based on this years entering freshman (DD is a year away) she is in very good shape! But I am still not getting my hopes up for scholarships. I'll just keep saving and saving and saving.

 

[LisaR]

Yep - I'm talking about "dumbing down" a little. By that I mean a bright student chooses a school the next level down from what he could conceivably get into. Still a good school with strong academic programs - in some cases better programs in specific areas than the "better" school but without the reputation, etc. Students get excellent educations at better prices.

You have to be totally focused on your student and unwilling to play any games with your friends, etc. I have some friends who are so focused on getting their child into the "right" school that this would never fly with them. Of course, several of them are dealing with some major disappointments this summer and have ended up going to second or third choice schools anyway.

DD doesn't have her heart set on any school in particular. She has liked almost every school we have visited and doesn't seem to be overly picky. We have always looked at those key top colleges in our state and just recently decided to take a look at those lesser accepted ones to see if we can figure out what is wrong with them. So far, we haven't found anything wrong.

 

[DawnM]

We are saving about $40K per child.

Currently tuition at NC state schools ranges from $6K-10K. We told them we will cover tuition at a state school. If they live at home they can live for free, if they choose to go away to school they will need to cover room and board. If they choose a private school, we will pay the going rate for public college and they will need to cover the difference.

 

[MissDaisyofTexas]

Right now, we aren't contributing anything to our kids' college funds. We have 529s set up for them, but we decided to stop contributing to them until we get our 3-6 month emergency fund set up. We hope to have our fund done by the end of this year and resume contributions to their 529s next year

When we do resume our contributions, our plan is to contribute $200/month per kid ($600 since we have 3 kids). Based on the online calculators, I know that won't be enough for 4 years of in state school. The calculators tell me that by the time my kids get to college it will cost $150k-$200k for 4 years of in state college!

We are hoping to pay off our mortgage early (within the next 10 years) so that we'll be debt-free when our oldest goes off to college (he's 8 now). Hoping we can then divert some of our income to help out our kids with college costs.

I really, really hope that our kids don't have to take out student loans. Both of our parents were able to pay for our college (of course it was a lot less expensive then) and we consider it one of the greatest financial gifts they've ever given us. (Of course, the best financial gift they've given us is that they are financially independent in their old age and we don't have to support them in their retirement).

 

[goodfood4ursoul]

• 
  
  My company may be a dying breed, but I have associates making $20-40 an hour without degrees, who do not have to take their work stress home with them each night. I have told them when the time comes they will need to weigh what makes them happy.

• 
  
  
  Sign me up!
  Sounds great to me- where do I apply?
  
  
  

 

[DVCLiz]

These were outside scholarships. One through my husbands work. One was a big scholarship, everything paid including room and board, at college.

Ah, that's the difference. A true merit-based scholarship in the traditional sense does not take into account any financial information.

DD doesn't have her heart set on any school in particular. She has liked almost every school we have visited and doesn't seem to be overly picky. We have always looked at those key top colleges in our state and just recently decided to take a look at those lesser accepted ones to see if we can figure out what is wrong with them. So far, we haven't found anything wrong.

That's because there isn't anything "wrong." In most cases, the school is just smaller and has less of an academic reputation than the "name" schools. As long as you are satisfied that it is an accredited program and that it is a good fit for your daughter, it will be a great experience for her. Of course, there are some lesser schools that are stinkers, too, so you have to do your research.

• We put in on $50 per month.
• Grandparent puts in money at each birthday, Christmas and all of his change saved for the year
• I fund my 401K over the max match amount (I want to be able to not work when I retire)
• My DH works at a University and the kids will get 50% of tuition paid. We have told them, we will help pay the difference. If they choose to go to another school, they will only get the difference, then they are on their own for the res
• They have to live at home
• Stay unmarried
• Have no babies
• Work in the summer
  
  

With DH working at a university he sees the kids whose parents pay for it all and they don't seem to care as much and have an entitlement mentality.

My parents have a great income. Far more than I will ever make. I worked through college, didn't finish (until a few years ago), and appreciated the degree that I WORKED for much more.

Also, off topic, but working in corporate America I have also told my kids that I have no issues if the decide to not go the college route provided that they find a job that can support them. My company may be a dying breed, but I have associates making $20-40 an hour without degrees, who do not have to take their work stress home with them each night. I have told them when the time comes they will need to weigh what makes them happy.

We've had this discussion many, many times before on the DIS and the consensus is that you'll only have an entitled kid if you raised one. Plenty of us are paying for a full ride and have raised successful, talented and appreciative students who graduted debt free in four years and went on to work in successful careers and become solid members of society. It's really insulting to those of us who don't have spoiled entitled students when you say things like this. It just makes us think you are using it as an excuse for why you didn't pay for your kid.

If your kid wants to live on campus and is willing to pay for to, why the requirement to live at home? It seems to me you are getting off cheap by getting that 50% discount - why not let your kids live on campus?

And finally, if you think there are lots of jobs out there that pay $80,000+ with a high school degree, then by all means prepare your child for that path. Again, those of us who have a more realistic view of what the working world is like want our kids to be as competitive as possible, in case those $80,000 jobs with no college degree dry up.

 

[DisneyMomma81]

This is an interesting article I heard about yesterday on a local talk news show. A university student called in and said there is a huge difference in students who have their education paid for by their parents, college to a lot of them is a party experience; compared to those who pay their own way, *loans which have to be paid back or working while going to school.

I will encourage my kids to go to a local university and live at home, working part time. My parents didn't pay for my nor my 3 younger siblings higher education and I never expected them to, my youngest brother is able to take advantage of our dad's GI bill, lucky guy.

 

[punkin]

This is an interesting article I heard about yesterday on a local talk news show. A university student called in and said there is a huge difference in students who have their education paid for by their parents, college to a lot of them is a party experience; compared to those who pay their own way, *loans which have to be paid back or working while going to school.

I will encourage my kids to go to a local university and live at home, working part time. My parents didn't pay for my nor my 3 younger siblings higher education and I never expected them to, my youngest brother is able to take advantage of our dad's GI bill, lucky guy.

As discussed ad nauseam in this thread, this is sheer nonsense. Everything depends on the child in question. I can tell you my "paid for" DD is working her tail off at a very prestigious college in two very rigorous programs. I paid most of my own way (because my family was poor) and did my fair share of partying - though I did graduate on time with a marketable degree (my GPA, however could have been better). Sweeping generalities are useless when dealing with individual situations.

I feel that it is my parental duty to help my children start their lives with degrees and as debt free as possible. DH and I currently have the income to to accomplish that to a very large degree while not unduly compromising other long term goals. We are extremely lucky and we know it. If we did not have the funds, we would try to help our children in other ways (much as my mother did for me).

 

[DawnM]

My parents paid for all of my college (I did work for spending money and the car) and I appreciated every bit of it.

When I graduating I asked my Dad if I could pay him back. His reply? "Why, YES, you can! You can pay me back by paying for your own children's college."

I have never forgotten that and I intend to do exactly that, in as much as I am able.

Dawn

This is an interesting article I heard about yesterday on a local talk news show. A university student called in and said there is a huge difference in students who have their education paid for by their parents, college to a lot of them is a party experience; compared to those who pay their own way, *loans which have to be paid back or working while going to school.

I will encourage my kids to go to a local university and live at home, working part time. My parents didn't pay for my nor my 3 younger siblings higher education and I never expected them to, my youngest brother is able to take advantage of our dad's GI bill, lucky guy.

 

[allison443]

My parents paid for all of my college (I did work for spending money and the car) and I appreciated every bit of it.

When I graduating I asked my Dad if I could pay him back. His reply? "Why, YES, you can! You can pay me back by paying for your own children's college."

I have never forgotten that and I intend to do exactly that, in as much as I am able.

Dawn

Dawn, you are wrong. You did not appreciate your parents paying for college! After all, someone's husband works at a college and said so, and someone heard a caller to a radio show say so!

 

[IUTBAM]

...and not everyone has a valedictorian on massive scholarship either.

She isn't on a massive valedictorian scholarship. We pay for what her scholarships don't cover, but because she made the frugal choice to live at home, we don't have room and board to pay for.

And I realize not everyone lives near major universities like we do, but the fact remains, there are affordable options for college. No matter where you live it doesn't have to cost $20K (or more) a year. There are options.

 

[Colleen27]

We don't save a ton, only $50 per month per child, but each of my kids was gifted a pre-paid tuition contract from a generous relative years ago so as long as they attend a state school they'll be starting out in a good position.

At this point, I believe DS14 will go the community college/vocational route so what we have saved will be more than sufficient. I worry more about DD10 because she's extremely bright, academically-focused, very involved in a number of sports/activities, and might be more interested in private or out-of-state universities, but she'll make her choice knowing what we're able to pay for and knowing the rest is up to her. DD4 is just too soon to tell, but we'll steer her towards state schools same as the others and caution very strongly against taking out large loans to go elsewhere.