Saving for college

Detroitgator · Jul 10, 2019

bradgator2 said:
My sister got close to the same deal with her kids. They were born in 2000 and 2002. I think it was $7500 each for the lump sum. When my first daughter was born in 2007, I was excited to check out the plans and sign up. It was shockingly expensive. $22,000 for the lump sum payment if my memory is correct. I am on the website now, for a kid born this year... it is $29,472 for the lump sum payment (4 year university plan). That is why I went the 529 option. I really cant complain, I have a 9.4% rate of return on both accounts since inception and it is growing nicely.

So, for my niece, she choose a small (very expensive) school outside the state. The program said, "No problem, she cant use this program but here is your $7500 back." Needless to say, her folks are now shockingly unprepared to help her.

Sorry, but this is where parents gotta parent... for my kids, the deal was one truly top 10 undergrad program application, or off to UF, then I'll pay the big money for a top 10 graduate program if they want to go (or help them start a business in a few years if they don't want that deal). Because it almost doesn't matter when you look at even "good" out of state programs... hell, even if your kid goes to Auburn or Georgia, you're paying north of $40K/year. That's idiocy if you are accepted to UF (or even FSU for that matter) and have pre-paid AND Bright Futures.

Gator By Marriage · Jul 10, 2019

Detroitgator said:
Sorry, but this is where parents gotta parent... for my kids, the deal was one truly top 10 undergrad program application, or off to UF, then I'll pay the big money for a top 10 graduate program if they want to go (or help them start a business in a few years if they don't want that deal). Because it almost doesn't matter when you look at even "good" out of state programs... hell, even if your kid goes to Auburn or Georgia, you're paying north of $40K/year. That's idiocy if you are accepted to UF (or even FSU for that matter) and have pre-paid AND Bright Futures.

You are absolutely correct. Because of my job transferring us around a bit, we went the 529 route as we had no idea where we would be living when the kids went to college. When my kids started looking at colleges, I showed them the latest statements for the accounts and told them that's what they have to spend. If they wanted to go out of state or private, it was their responsibility to make up the difference. To their credit, one chose a small private school and one chose UF, they both earned schollys to make up the difference.

bradgator2 · Jul 10, 2019

Detroitgator said:
Sorry, but this is where parents gotta parent... for my kids, the deal was one truly top 10 undergrad program application, or off to UF, then I'll pay the big money for a top 10 graduate program if they want to go (or help them start a business in a few years if they don't want that deal). Because it almost doesn't matter when you look at even "good" out of state programs... hell, even if your kid goes to Auburn or Georgia, you're paying north of $40K/year. That's idiocy if you are accepted to UF (or even FSU for that matter) and have pre-paid AND Bright Futures.

You'll get no disagreement from me as I think the whole situation is absolutey insane. She had prepaid and bright futures. But, imo, it gets even worse. She chose that school because of a softball "scholarship". Considering it is not even DivIII, it's not a scholarship... but a slight reduction in tuition. Instead of it being $60k, it is only $45k a year. Supposedly, they have an excellent pre-med degree. She just finished her freshman year and I was at their house when she came home for the summer a few weeks ago.
"How's school going?"
"Good"
"That's it? How are the pre-med classes going?"
"Well... I am not doing that anymore. I switched to communications."

She didnt even tell her parents (my sister and BIL) yet.

BMF · Jul 11, 2019

bradgator2 said:
You'll get no disagreement from me as I think the whole situation is absolutey insane. She had prepaid and bright futures. But, imo, it gets even worse. She chose that school because of a softball "scholarship". Considering it is not even DivIII, it's not a scholarship... but a slight reduction in tuition. Instead of it being $60k, it is only $45k a year. Supposedly, they have an excellent pre-med degree. She just finished her freshman year and I was at their house when she came home for the summer a few weeks ago.
"How's school going?"
"Good"
"That's it? How are the pre-med classes going?"
"Well... I am not doing that anymore. I switched to communications."

She didnt even tell her parents (my sister and BIL) yet.

I would have told her, "2+2 = 4 at every college in the world. You're going in-state, period!" Done, end of discussion. But more importantly, she would have known that as young as 5 years old...and then again at 6 years old...and again at 7 years old, and so forth. It never would have crossed my kids mind that going out of state was a possibility!

NovaGator · Aug 27, 2019

The good Lord blessed us with a grand daughter 30 months ago. When my mother-in-law passed in 2017, she left each of the grand kids (and her only great grand daughter) $5000 each. We put $15K to it and opened a 529 with T.Rowe Price, the company that holds our I.R.A.'s. For as long as I am still breathing air, I hope to put $5000 to it every year. Hopefully, that will be enough to see her through college.
I did think about Florida's Pre-Paid Plan. I bought one for my daughter in 1988 that cost somewhere around $3500.
Then in 2005, we bought one for my son, which was somewhere around $10,500. When I checked the cost of the plan in April, I couldn't believe it! Our tax guy suggested the 529's.

Zambo · Sep 13, 2019

College is like a wedding. You can easily spend way too much and not get a damn thing for it. Why in the holy hell would somebody go to an out of state public school without a scholarship to pay for it? There is literally zero reason to do this. I would tell my kid in no uncertain terms that I'll pay for the cost of in-state tuition and if they want to go someplace that costs more than that they are free to pay for it themselves. "No!" Say it with me......."no!" Its a pretty easy word and gets easier to say the more you say it. "No!" In fact, it feels good and liberating..."No, no and OBTW F No!"

GI Bill is another way to get college money. You don't even have to join the military, you could join the Air Force.

g8r.tom · Sep 13, 2019

Actual college costs are not that bad, in state. Tuition fees and books. The rest of the costs, food, rent, clothing, you pay where ever you are. Getting out of college with thousands in debt is crazy.

Bushmaster · Sep 19, 2019

Lived at home and went to UNC because we moved up to NC after graduation. I was accepted to UF and was invited to walk on the football team, but knew that was a long shot. So I decided to go to a school that didn't have football. :)

My first semester's tuition was $358 and books were about $250. My Jr year, I joined the NG and they picked up $1000 per year, so i really had less than $5k-$6k in a 4year accounting degree from a top business school.

Going to UF would have required room and board at about $1500 per semester. Would have easily tripled the cost of education.

divits · Sep 21, 2019

Zambo said:
College is like a wedding. You can easily spend way too much and not get a damn thing for it. Why in the holy hell would somebody go to an out of state public school without a scholarship to pay for it? There is literally zero reason to do this. I would tell my kid in no uncertain terms that I'll pay for the cost of in-state tuition and if they want to go someplace that costs more than that they are free to pay for it themselves. "No!" Say it with me......."no!" Its a pretty easy word and gets easier to say the more you say it. "No!" In fact, it feels good and liberating..."No, no and OBTW F No!"

GI Bill is another way to get college money. You don't even have to join the military, you could join the Air Force.

I never understand people without the means who will need to take out student loans taking their HS kids on a country wide tour of different schools looking to pick "just the right one". It's insane. Unless a school is one of the very few in the country that offers a particular degree it makes no sense spending tens of thousands a year extra just because Junior likes the ivy on the walls.

Let's face it, if you're an 18-21 year old kid and you can't have fun on just about any 4 year college campus there's something wrong with you. Pick a school and a major that provides a good ROI, learn good interpersonal skills and how to budget and save and you're good to go without having a student loan albatross hanging around your neck for decades.

Politigator · Oct 5, 2019

If you can't afford it, start with a community college. I did one year and loaded up credit hours, then transferred to UF, and eventually went to a "top 10/20" private graduate school, with partial fellowship. A friend of mine did the same thing, one year cc, then UF, and ended up an MD. Two others did 2 years cc and became DOs.

stephenPE · Oct 7, 2019

kepler said:
I love the prepaid program. You’re locking in todays rate for college 17 years later. Like all decisions college is a financial choice. Should you and your child choose to forgo the locked in rate for an out of state school at market rates, that’s a choice. I supplement two prepaid accounts with 529s to cover non- tuition expenses. We will see how it all turns out I guess.

worked for our kid(s) Inlaws bought one for our daugher in 85. She got a National Merit Scholarship to UF. So we transfered it to son. He used some of it. They sent me a chck for about 1800 a few years ago. I think the damn thing cost only 3500 total. Then it was a 2+2. 2 yrs of commnuity college and two of Four Yr college..........

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Saving for college

Detroitgator

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Gator By Marriage

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bradgator2

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BMF

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NovaGator

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Zambo

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g8r.tom

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Bushmaster

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divits

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Politigator

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