Is anyone else not saving or paying for college?

[TXinmyheart]

We have saved nothing for our kid's college. We expect our kid to pay for college. I know many parents do, but I wonder who is not?

I take heart in a recent study published in the NY Times that we are on the right track for our family:

http://www.nytimes.com/2013/01/15/education/parents-financial-support-linked-to-college-grades.html

Parents’ Financial Support May Not Help College Grades
Published: January 14, 2013

Parents saving for college costs, take heed: A new national study has found that the more college money parents provide — whether in absolute terms or as a share of total costs — the lower their children’s college grades...

 

[jennyjinx3]

Very interesting indeed. Thanks for posting the link. We are in the camp of saving "some" and expecting the kids to pay for the rest. You will probably get some interesting responses.

 

[Pigeon]

No, we absolutely intend to pay for four years at a public university or the equivalent. If I wasn't willing to do that, I wouldn't have had kids, personally.

My parents paid for my college education, and I graduated summa cum laude. It was by far, the best gift they gave me.

 

[ronandannette]

We suffered a huge financial reversal six years ago when DS was 10. We lost everything and have not managed to "rebuild" savings or investments. DH is 58 and underemployed; it's unlikely that we'll be in a position to completely finance post-secondary. We'll do what we can out of cash-flow when the time comes and fortunately, a college or university education in Canada costs vastly less than in the States.

 

[Bonniec]

We didn't. Mostly because we didn't have it back then. Both of my twins have put themselves through college, or I should say gotten themselves into college since they are just freshman now. We will probably do the same with our youngest unless we somehow come into money. If I had a lot, I wouldn't think twice about paying for it. My twins had to work extremely hard to get their scholarships. It certainly wasn't easy on them and I'm very proud to see them go. I wish I had been that driven at that age.

I think it's great if you can afford it but it's not the end of the world if you can't.

 

[TXinmyheart]

I think it's great if you can afford it but it's not the end of the world if you can't.

I am of the Clark Howard camp that you cannot borrow for your retirement. I personally think it builds character and makes for a better student when they have skin in the game.

I see it all the time with business people with the difference in the way they treat things, shop, vacation when someone else is not picking up the tab.

 

[Scrappy_Tink]

I REFUSE to put myself into debt for my children. If I can afford to pay for a class or two with no hardship, I will, but I will not get loans or give them a "full-ride" through college. If they are determined enough to go to college, they can get a job and go part-time. I've seen too many parents waste their money on their children's education, just for them to get married and not work, or quit school.....or graduate, only to get a minimum wage job, and not exert themselves to do any better....and the parents are stuck paying the bills for years.

 

[mombrontrent]

We are not saving specifically for our kids education but we do have investments and will pay for college/university for our kids. We are also in Canada so the financial hit won't be so bad.

 

[Southernmiss]

We are encouraging our kids to strive for scholarships. So far, oldest ds has a full 4 year scholarship. We won't be able to pay for college in full, but hope to help our 4 some. Both dh and I had to work and pay our own way. It wasn't easy but it is doable. We work hard, but salaries just don't cover everything.

We are steadily saving for our retirement instead of college. Hope that wI ill be enough. Can't take out loans for retirement.

 

[lurkernj]

I think there was a pretty lengthy discussion about this on the budget board a while ago. It got pretty heated.

I intend to pay for at least 4 yrs for each kid(2). I would hate for them to start their adult life with that much debt when we are able to help them. We saved even when we could barely make ends meet, and now were getting ready to send ds17 off in September.

 

[gechele]

If u can't pay for it that's one thing but if you can you should . I don't want my children to start life in debt .

 

[disykat]

We plan on paying for as much as their undergrad as we can. Of course the "scholarship" we provide will be conditional upon grades. They've also been saving since they started doing odd jobs around the neighborhood, then having sumer jobs etc. They don't want a bunch of loans, nor do I want them to have them.

It never pays to hand your children everything without expectations attached. However, If we didn't have money, our kids would qualify for more help. I'm not going to penalize a hard working, deserving child by refusing to help them when we have the money to do so.

Just because some parents are foolish enough to give full rides to mediocre students and that throws some sort of curve doesn't mean all parents should refuse to help their kids.

I personally know some kids who watched their parents spend their "college funds" on vacation cabins while they are working and taking out thousands of dollars of loans. My experience has actually been that those are the kids that are partying it up because they have the same kinds of "we'll worry about it later" attitude about money that their parents do.

Every child I know who knows their mom and dad are sacrificing for them and has been taught about money/loans/college costs has honored that sacrifice.
Those same kids are the ones who know that if they don't honor the sacrifices their parents are making to help them, the parents will STOP paying.

 

[StitchesGr8Fan]

We intend to pay for tuition so we will start a 529 plan when baby gets here. However, the kid will have to pay for books, and maybe room & board. I don't want my kid to start his adult life in debt, but they need to have some skin in the game. And I think in 18 years there will either be a reform to make college affordable to almost everyone, or scholarships and grants will be few and far between.

 

[jennyjinx3]

We plan on paying for as much as their undergrad as we can. Of course the "scholarship" we provide will be conditional upon grades. They've also been saving since they started doing odd jobs around the neighborhood, then having sumer jobs etc. They don't want a bunch of loans, nor do I want them to have them.

It never pays to hand your children everything without expectations attached. However, If we didn't have money, our kids would qualify for more help. I'm not going to penalize a hard working, deserving child by refusing to help them when we have the money to do so.

Just because some parents are foolish enough to give full rides to mediocre students and that throws some sort of curve doesn't mean all parents should refuse to help their kids.

I personally know some kids who watched their parents spend their "college funds" on vacation cabins while they are working and taking out thousands of dollars of loans. My experience has actually been that those are the kids that are partying it up because they have the same kinds of "we'll worry about it later" attitude about money that their parents do.

Every child I know who knows their mom and dad are sacrificing for them and has been taught about money/loans/college costs has honored that sacrifice.
Those same kids are the ones who know that if they don't honor the sacrifices their parents are making to help them, the parents will STOP paying.

This is very well put.

 

[Mickey'snewestfan]

That article also says that if parents set clear expectations for grades and timeline for graduation the difference is eliminated.

On the other hand, I'll be there are studies linking lack of money with difficulty completing the program. I'm not sure good grades matter much if you don't make it to the diploma.

I expect that my child will work hard to earn some merit aid, and have a job in college, and possibly take out a Stafford loan, but I also know that for many wonderful, hard working, bright but not brilliant kids (a description that fits mine), affording the kind of education I want for him isn't going to happen without parental help.

I have committed to saving enough to afford both instate tuition in my state, and what I expect the FAFSA to calculate for my Effective Family Contribution (yes, I've run the calculators already even though he's only 13, I want to be prepared). He won't be able to go anywhere in the country, but he should have a variety of good choices if he has the grades and scores to get in.

 

[Janepod]

We will pay for his tuition anywhere. Hopefully we can pay for grad school as well. We have been putting away a considerable amount of money every year since he was born. Also, we live below our means in many ways -- our mortgage will be paid off less than 4 years from now, when the kid is 11. We're in our early 40s. Barring something truly catastrophic, we'll be in fine shape.

Philosophically, we want our son to be able to pursue any career field he wants after college. E.g., if he wants to go into publishing or the arts, he will have to start out with very low-paying jobs. My husband grew up beyond poor and had to go into finance to have any hope of repaying his college and grad school loans. He wanted to be in a more creative field and does not want our son to have to choose a career that makes him unhappy.

 

[cmwade77]

I never have understood why people think parents should pay for college.

My parents were completely unable to help me with mine, so I don't see why any kid should feel entitled.

I also think you appreciate it more if you have to work for it.


There are plenty of programs to help with paying for college to the point that you can pursue any field without parents feeling obligated to pay.

Just my two cents on it all.

 

[Bonniec]

I am of the Clark Howard camp that you cannot borrow for your retirement. I personally think it builds character and makes for a better student when they have skin in the game.

I see it all the time with business people with the difference in the way they treat things, shop, vacation when someone else is not picking up the tab.

Well, I am glad I am not the only one. I have a 7 year old now and we are in a better place financially. But if we put college money away, we'd have virtually nothing left for any leisure. So I do find myself feeling guilty and wondering what we should do at times. If we get to a place where we are earning anymore, then we will put money away. Simply to avoid and college loans.

The twins had almost full scholarships off grades but one of them did have to take a small loan. I would have liked to have been in a position to avoid that. But at the same time, they are great kids who work their butts off so I don't have to worry too much with them. Maybe havign to work for it helped with that. I have no idea to be honest. I'm just glad it all worked out.

 

[Mickey'snewestfan]

I never have understood why people think parents should pay for college.

My parents were completely unable to help me with mine, so I don't see why any kid should feel entitled.

I also thin you appreciate it more if you have to work for it.

Just my two cents on it all.

Can I ask how many years ago you attended, and whether you got need based financial aid (e.g. Pell grants, University scholarships, subsidized student loans, work study)? College costs have gone up a lot since I went to school, and the earning power of someone without experience or a college degree (e.g. a college freshman) has not kept pace. I am not sure that I can assume that what was possible for you to do will be possible for my kid.

 

[Southernmiss]

Can I ask how many years ago you attended, and whether you got need based financial aid (e.g. Pell grants, University scholarships, subsidized student loans, work study)? College costs have gone up a lot since I went to school, and the earning power of someone without experience or a college degree (e.g. a college freshman) has not kept pace. I am not sure that I can assume that what was possible for you to do will be possible for my kid.

You bring up great points. College costs are so high and things in general have changed so much as far as job opportunities that I have softened from the belief of the poster you quoted to more of a do what we can to help them get through college with minimal debt.