Is anyone else not saving or paying for college?

[zurgswife]

Exactly! The price of college has risen so fast and so high.

My husband graduated college in 1987, his college was roughly 4,000.00 a year.

Our son now goes to the same college, it is now roughly 25,000 a year.

No way can a kid work and pay the yearly tutition, its just too much!

Example in real numbers ( I was bored)

College costs in 1987 $4,000

Work full time summer
40 hrs x $3.35 (minimum 1987) x 12 weeks = $1,608

Work Part time school
20 hrs x $3.35 x 40 weeks = $2,680

Total $4,288
Pell Grant available in 1987 $2,100 (maximum)

Available funds for school and expenses with no loans $6,388

So, the student would have $2,388 available for books, transportation and extras.


College costs in 2012 $25,000

Work full time summer
40 hrs x $7.25 (Federal minimum 2012) x 12 weeks = $3,480

Work Part time school
20 hrs x $7,25 x 40 weeks = $5,800

Total $9,280
Pell Grant available in 2012 $5,550 (maximum)

Available funds for School and expenses with no loans $14,830

The student would be short by -$10,170

So, for a kid to try to cover school without scholarships, parental help or loans is impossible to do themselves. Scholarships are very difficult to find and get unless your a top athlete or Merit scholar student.

 

[Southernmiss]

Example in real numbers ( I was bored)

College costs in 1987 $4,000

Work full time summer
40 hrs x $3.35 (minimum 1987) x 12 weeks = $1,608

Work Part time school
20 hrs x $3.35 x 40 weeks = $2,680

Total $4,288
Pell Grant available in 1987 $2,100 (maximum)

Available funds for school and expenses with no loans $6,388

So, the student would have $2,388 available for books, transportation and extras.

College costs in 2012 $25,000

Work full time summer
40 hrs x $7.25 (Federal minimum 2012) x 12 weeks = $3,480

Work Part time school
20 hrs x $7,25 x 40 weeks = $5,800

Total $9,280
Pell Grant available in 2012 $5,550 (maximum)

Available funds for School and expenses with no loans $14,830

The student would be short by -$10,170

So, for a kid to try to cover school without scholarships, parental help or loans is impossible to do themselves. Scholarships are very difficult to find and get unless your a top athlete or Merit scholar student.

And even then, scholarships are hard to come by. Interesting calculations. Thanks for posting.

 

[lurkernj]

Now I know you're a troll.

When they were bragging about traveling the world while their kid chokes on debt I was thinking, ok this is a troll, but after I read that gem, it was definitely confirmed

 

[disykat]

Example in real numbers ( I was bored)

Pell Grant available in 2012 $5,550 (maximum)
.

Great post! Don't forget though, that the pell grant is only available to students whose parents have an extremely low income, making the numbers even harsher for those whose parents have income but don't want to help.

NotUrsula had a great post as well. I think this has been one of the best college payment discussion in a long time!

 

[FINFAN]

we have 2 kids and the agreement is we pay for 2 years of what is equivalent to an instate school. Kids are responsible for the other 2 years. If they are at a school that is higher then in-state, they know they will have to pay the difference , try and earn scholarships, take loans...whatever, butwe are tapped out. I don't exactly like or feel proud about this arrangement, but with having to take care of 2 sets of aging parents over the last 5+ years, something we were NOT prepared to do...our ability to save toward college was drastically reduced. It is not a fun choice to have to make, let me tell ya...your kids future or your parents survival? All I know is we don't have enough.

 

[disykat]

we have 2 kids and the agreement is we pay for 2 years of what is equivalent to an instate school. Kids are responsible for the other 2 years. If they are at a school that is higher then in-state, they know they will have to pay the difference , try and earn scholarships, take loans...whatever, butwe are tapped out. I don't exactly like or feel proud about this arrangement, but with having to take care of 2 sets of aging parents over the last 5+ years, something we were NOT prepared to do...our ability to save toward college was drastically reduced. It is not a fun choice to have to make, let me tell ya...your kids future or your parents survival? All I know is we don't have enough.

Two years is a great gift you are giving your kids! I think you can feel very proud of that.

 

[ez]

My daughter borrowed the max she could which was 5,000 and the rest is coming from Bright Futures and family designated college funds. After only one semester of college she is already a junior because she did the IB program in hs. The amount she owes when she gets her bachelors should be around 12,000, which I don't think is unreasonable. She plans on going to law or grad school so that is why she is borrowing now, kinda looking at the big picture if that makes sense. Like if she used up all her college monies and ran out might not be able to borrow enough by the time law school comes around. It's hard to know what to do but her school is on Kiplingers best value list so at least feel good about that

 

[Gumbo4x4]

I made enough in my Summer job to pay my tuition for the 1988-89 year. A part time job during school covered the rest of my expenses. No way could I do that today.

 

[FINFAN]

Two years is a great gift you are giving your kids! I think you can feel very proud of that.

thanks, I appreciate it, but it still hurts to have not done more.

 

[Gumbo4x4]

thanks, I appreciate it, but it still hurts to have not done more.

You're a parent - that comes with the territory

 

[robinb]

thanks, I appreciate it, but it still hurts to have not done more.

Don't worry {{hugs}}. We all know that you wish you could have done more and you *should* be proud of what ever you can contribute. I know that your kids appreciate it. As for the DIS, we'll cut you a break as long as you're not celebrating "Marriage 3.0" with an around-the-world trip instead of helping your kids start life without a boatload of debt .

 

[Mickey'snewestfan]

we have 2 kids and the agreement is we pay for 2 years of what is equivalent to an instate school. Kids are responsible for the other 2 years. If they are at a school that is higher then in-state, they know they will have to pay the difference , try and earn scholarships, take loans...whatever, butwe are tapped out. I don't exactly like or feel proud about this arrangement, but with having to take care of 2 sets of aging parents over the last 5+ years, something we were NOT prepared to do...our ability to save toward college was drastically reduced. It is not a fun choice to have to make, let me tell ya...your kids future or your parents survival? All I know is we don't have enough.

Two years is a wonderful gift! One thing I'd suggest, because I have seen other people run into this problem, is that you have your kids take out the maximum stafford loans the first two years, and then use that $ to contribute towards the last two years. There's a good chance your kids will qualify for interest free loans. I've seen a number of parents who expect their kids to pay for the last year or last two years, but the kids don't have the credit history or employment history to borrow that money without high interest rates. Plus, they start accruing interest from day 1. It's much better to have your kids borrow $5,500 a year, for example, than to try and borrow $11,000 during each of the last two years.

 

[Missy1961]

When they were bragging about traveling the world while their kid chokes on debt I was thinking, ok this is a troll, but after I read that gem, it was definitely confirmed

Me too. This thread reminds me of similar troll threads over the years. At least it makes things interesting.

 

[disykat]

Two years is a wonderful gift! One thing I'd suggest, because I have seen other people run into this problem, is that you have your kids take out the maximum stafford loans the first two years, and then use that $ to contribute towards the last two years. There's a good chance your kids will qualify for interest free loans. I've seen a number of parents who expect their kids to pay for the last year or last two years, but the kids don't have the credit history or employment history to borrow that money without high interest rates. Plus, they start accruing interest from day 1. It's much better to have your kids borrow $5,500 a year, for example, than to try and borrow $11,000 during each of the last two years.

Great point! Additionally, if the kids work and get some scholarships, you can stretch that two full years into paying a good portion of 4 full years. As many of us have said, it's not about laying out a bunch of cash for the entire year, it's about putting together (scholarships, student, parent) all the pieces to cover the costs.

 

[pigletgirl]

Yes, we have already opened up another account for our daughter and will do the same for our other children we have as well. Part of parenting is sending them on their way and paying for a post high school education is essential.

 

[tvguy]

Interesting. I will have to go challenge those stats put out by a few high schools. I thought that 2009 was the beginning of the first population surge. That population boom was supposed to end with the class of 2013 and the decline was to start with the class of 2014. Honestly, I'm not making that up. I have been given that brief by my son's own high school and then a friend of mine in a neighboring county got the same statistic thrown at them.

DD graduated from High School in 2009, and that is what all the schools she applied to said. She transfered to another college in 2012, and they said the same thing there. And DS was at another college, same deal with them.
I am talking strictly about incoming freshman class to college, not transfers or students taking more than 4 years to graduate, or those returning to college because they can't find a job.

I'm going to poke around and see if I can find a reliable number, Google is failing me right now.

 

[hellow]

At the risk of getting totally flamed, I just want to add that saying things like "We planned to have only the number of kids we could afford , including the costs of sending them to college" or something along those lines sounds a little snarky. Just remember, "things" happen in life. You can try to plan your life, including your financial life, but it doesn't always work out like you planned for a multitude of reasons.

People generally do the best they can with the hand they have been dealt. Be happy if you make enough/save enough/are disciplined enough to save the money to send your child or children to school, but don't make others feel bad if they haven't or couldn't. Nothing in life, including financial stability, is guaranteed. Enjoy it, but don't use it to put yourself on a pedestal.

I am thankful everyday that we have been able to give our kids all that they need and then some, but I know that in the blink of an eye, it could all be gone...

 

[anniemck]

I guess I just don't get some of these prices. My semester is $2100, this includes 13 credit hours, 5 classes including books. This is the most I have had so far and this is my 4th. I do not understand these 20k per year pricings.
Even my daughter who is full time 12 credit hours at FAU is less thank $3k for the semester. This is for her bachelors.

 

[jodifla]

I guess I just don't get some of these prices. My semester is $2100, this includes 13 credit hours, 5 classes including books. This is the most I have had so far and this is my 4th. I do not understand these 20k per year pricings.
Even my daughter who is full time 12 credit hours at FAU is less thank $3k for the semester. This is for her bachelors.

Public universities in Florida are some of the best deals in the U.S. They have much lower prices than in Michigan, for example.

 

[Southernmiss]

I guess I just don't get some of these prices. My semester is $2100, this includes 13 credit hours, 5 classes including books. This is the most I have had so far and this is my 4th. I do not understand these 20k per year pricings.
Even my daughter who is full time 12 credit hours at FAU is less thank $3k for the semester. This is for her bachelors.

You are very fortunate. Instate public school s in Mississippi are approaching $8000 plus for tuition only then add in books housing meal plan etc.