what about paying for college?

[Rock'n Robin]

That's my worry with this economic news. DD#1 is a junior. She had about $13,000 in a merril lynch account through my parents. I don't know where it is today. It could have paid for one year in a state school w/ room and board, or 1 1/2 driving. Now it can pay for 1 1/2 years at the local CC. I was hoping to make it up with loans, but will we get a loan in a tighter market? I think a lot of kids will be having to do something besides college if things don't improve.
Robin M.

 

[mickeyboat]

DH and I have some money saved - not nearly enough, but a lot to us.

We had it in CDs but I let them all mature without renewing them, thinking I would invest in the stock market.

I have been lazy about getting it done, and I am a little glad I was.

But now I am thinking it might be the time to do it - while the market is low. I am just a little freaked out about it. We have less than 10 years to go.

Denae

 

[PatsMom]

DD is a senior so I had moved all her college money to money market type assets a few years ago. Some student loans were already impacted by the auction rate securities market issues. I suspect that with a general tightening up of credit that student loans will be harder to come by. And I know lots of people who have used home equity to help pay for college - equity lines of credit will also become harder to get.

 

[Rock'n Robin]

I'm thinking at the least that if we can get any loans, she will be at one of our local schools (we have two good state schools within 20 minutes) or the
CC. But living in the dorm may not be feasible.
Robin M.

 

[ladycollector]

I don't think I'd worry just yet, she's only a junior in high school. I'm no economist but wishfully thinking, this should be settled out a bit by the time she graduates.

OT - I'm a junior in college and I'm wondering how this economic sitation will affect my scholarships. I pay for school exclusively through scholarships - no loans, no help from parents... So anything happening to them would be devastating to my education.

 

[PatsMom]

I don't think I'd worry just yet, she's only a junior in high school. I'm no economist but wishfully thinking, this should be settled out a bit by the time she graduates.

OT - I'm a junior in college and I'm wondering how this economic sitation will affect my scholarships. I pay for school exclusively through scholarships - no loans, no help from parents... So anything happening to them would be devastating to my education.

Scholarships could possibly be impacted depending on where the money is coming from. If it is the school's endowment and the endowment fund value goes down because of the economic disaster going on, they will be less willing to pay out money. The current market is not kind - it is not just equities. The fixed income market is in the toilet as well. That means even well diversified, fairly conservative portfolios are seeing large drops in value.

 

[The Mystery Machine]

Yea...stinks. DD is a senior. Right now we are dumping cash into an account to pay for next year.
She will have to work, I will work to pay for her college. I have saved some so far.

What else can you do? Loans are probably not going to happen.

 

[suzimar57]

my DS (finally!) graduates in december - we're counting the weeks here - have lived thru the struggle these past years securing loans, paying the tuition - good luck to all the students needing financing

 

[mamacatnv]

Scholarship and Merit awards were our lifesaver

Our DS's (College Freshman) accounts took a huge hit to the point that we are not touching them due to the huge losses we would incur.

DS goes to a state Univ. and is living on campus - the dorm is the most expensive part of this whole deal but we all felt it was worth the cost and we all (including DS) have contributed.

DS picked up a chunk in scholarships
DS took out a small Stafford Student Loan
He paid for his books with Graduation Money
We took out a Parent Plus Stafford Loan - (twice as much as DS's but still very manageable)
He is covered until next year. Whew!

I do not think that he will be in a dorm next year, so the living costs will be less. He works P.T. and is covering all his own expenses. If things continue in the direction they are going, he is going to have to contribute more towards his tuition or if he continues to live "away" he will have to pay his own way. (we live 10 minutes from the Univ)

Scary but doable. We really crunched the numbers and this was our best solution - hopefully not touching the accounts now will benefit us in the long run with DD's college costs.

 

[christineann]

Work study is a great program. My daughter is doing work study in addition to her scholarships and our loans, and it has opened doors to more scholarships just by getting to know the faculty and administration in her major department her freshman year.

 

[js]

I work in a private college. As long as my two children can make it into the college, they will go for free.
I thank God every day I am out of the city and now working in the college.

 

[missypie]

Son is a senior and his money is Utah's 529 plan. As they near graduation, 50% of the money is in money markets, 25% is in bonds and 25% is left in the stock market. I guess it's that 25% that has probably plunged in value.

 

[daisax]

The financial gurus I listen to on the radio each week tell people all the time they can't afford to pay to send their kids to private college, and that they need to be channeling those funds towards their own retirements or it will come back to haunt them in a big way. (In short, kids can get loans to go to college - nobody loans you money to retire)

It's really quite shocking when they break down the difference in cost today vs 20-40 years ago. One of the hosts points out that she went to a private college in the 60s and she earned HALF the year's costs in her summer job. No kids these days are earning $15K over the summer. However, parents still have the expectation that they "should" be able to send their kids to college as their parents sent them, ignoring the fact that you could be talking a half million dollars for 3 kids for 4 years.

The sad fact is that the cost of college has exploded by many tens of times more than the average income. It's better to fund your retirement (and to be free to give them money THEN towards a home, or loans) than to risk being a burden to your kids later in life because you haven't provided for your own future needs. Their guideline is that you save 20% of your income towards retirement, and AFTER that if you have money left over, you fund the college funds.

 

[allison443]

The financial gurus I listen to on the radio each week tell people all the time they can't afford to pay to send their kids to private college, and that they need to be channeling those funds towards their own retirements or it will come back to haunt them in a big way. (In short, kids can get loans to go to college - nobody loans you money to retire)

It's really quite shocking when they break down the difference in cost today vs 20-40 years ago. One of the hosts points out that she went to a private college in the 60s and she earned HALF the year's costs in her summer job. No kids these days are earning $15K over the summer. However, parents still have the expectation that they "should" be able to send their kids to college as their parents sent them, ignoring the fact that you could be talking a half million dollars for 3 kids for 4 years.

The sad fact is that the cost of college has exploded by many tens of times more than the average income. It's better to fund your retirement (and to be free to give them money THEN towards a home, or loans) than to risk being a burden to your kids later in life because you haven't provided for your own future needs. Their guideline is that you save 20% of your income towards retirement, and AFTER that if you have money left over, you fund the college funds.

Great post..I think a lot of people don't realize how much college costs have gone up, if their kids aren't high school age yet!
Many private colleges cost over $40K a year including room and board.
Also some of the financial aid mentioned on this thread is only available if you qualify with a certain income.

 

[missypie]

It's really even close to impossible for a student to save up enough money to pay for a state school by working part time.

Let's say a student works 15 hours a week during the school year and 40 hours a week durnig the summer, at or around minimum wage. Before taxes, a student could make about $7700 a year. That would almost pay for one year of room and board. If the student does that for 2 1/2 years during HS, he has made $19175, which might possibly pay for three semesters of school.

Minimum wage has not even doubled since I was working for it in college, yet the cost of a semester at a state schools has more than quadrupled.

 

[Piecey]

Work study is a great program. My daughter is doing work study in addition to her scholarships and our loans, and it has opened doors to more scholarships just by getting to know the faculty and administration in her major department her freshman year.

Work study is another one of those things that few are eligible for and there are even fewer slots open.

At least thats how it is at my school.
I'm not eligible, DH is. The only spot he can get is through the VA because he's a Veteran.
He wouldn't be able to get anything else.

 

[KelNottAt]

I've got a 9th grader and an 11th grader. (Boy I need to update their photo.)

I'm getting a little nervous. Not much, but a little. In state publics used to be our fallbacks. Now they're looking more and more attractive.

 

[SC Minnie]

SC started prepayment of tuition when DD was a toddler. We have been paying into it since. She will have in state tuition paid for 4 years. We were able to lock in to the tuition rate when we signed up as a huge savings. SC has since gone to the 529 plan. They tried to get us to pull our money out of the prepayment plan and put it into the 526 plan so she could use is anywhere. I am so glad I didn't.

 

[jax677]

We have one daughter that just graduated, moved back home and is working in her field. Our other daughter is in her 3rd year living on campus. Both girls were always encouraged to go to community college for the first 2 years, live at home and come away with an associates. Then transfer to a state school.

We were willing to pay for tuition, dorm and books. They pay for any extras they want. So far we have been blessed to be able to do this.

 

[Feralpeg]

Schools have already pulled some money from their scholarship programs. My DD got $800 less this semester than in the past two years. She has been on the Dean's List every semester, so it isn't because of her grades. They simple cut the amount of scholarship money. Many other students she knows also got less money. To top it off, tuition went up.