Saving for College

[packrat]

Wow, Uppy, that's a really great deal for your daughters college!

Neither my brother nor I went to college right after high school. There was no money waiting for us, and mom and dad couldn't/wouldn't pay..regardless, I don't think either of us knew what we wanted to do anyway, and probably would've screwed around.

I did take classes at the local community college before JD and I got married, and got loans that I paid myself. Kinda sucked to go from making $11/hour at a crappy factory job to $7/hour as a secretary tho. 10 years later I'm making $9/hour.

We have nothing set aside for either of the kids. We've tried but then Murphy stopped by repeatedly and decided he wanted it. If our financial situation were to change, we'd start trying again, but until then..they'll have to get loans and we'll help them as we're able to.

My brother joined the Navy and got his Bachelor's in Business Management, and is planning on getting his Master's.

 

[megumic]

Wow, that is a good question and something we're thinking about these days. We're putting our max (tax deductible amount) into our 529 accounts every year and starting a separate savings plan as well. Our parents paid for our private school tuition and private colleges and Lord knows how they did it. As soon-to-be parents, I have a new admiration for them and am so grateful.

Here's what may be a dumb question. If worse comes to worse, can't the student take out student loans? It just seems like such a terrible shame for a child not be able to go to the best school they're accepted into - the loans are low interest and spread out over years, aren't they? Isn't it worth it for the child's education and the job opportunities that come after graduating from a top tier university? Can't the parents just pay off the loans for them once they graduate? They payments can't be that high - at the most, less than a couple thousand per month, no? Of course, this would be a worst case scenario but even that doesn't seem so horribly bleak... does it? It doesn't seem terribly difficult - and the child won't ever have to pay back the loans since the parents would take it over and pay it down as quickly as possible.

I agree, the kids can and most likely will take out some of their own loans for college. As a current law student taking out my own loans to fund my three years of loving the law, I can tell you that the loans are in no way shape or form low interest. At 8.6% plus an origination fee on *federal loans*, I don't think the interest rates are particularly low. Even the Stafford Loans are at 6.8% -- and these are fixed, not variable. The only nice thing about federal loans is that they are more flexible with the pay off terms, such as income-based repayments. But even with that, chances are you're hardly hitting the principle.

If a student graduates with $80k of student loans (which I personally think is on the conservative side for a 4-year college), and the rate is the standard undergrad federal rate of 6.8%, a 10-year plan to pay off that loan is $920/month. If you come out earning $40k, after taxes your loan payments end up being practically half of your salary. If all payments are made on time, final cost is $110k (i.e. $30k in interest over the course of 10 years...)

So while I think you're right, loans are not the worst thing in the world, it can also be prohibitive to getting on your own two feet if you are strapped by the pressures of student loan debt.

 

[steph72276]

If relocation is a possibility, consider the state of Georgia.

We have totally free school, full day, beginning at age 4. There is no maximum income requirement.
Our college tuition is totally paid at any state school, so long as the student maintains a minimum GPA.
We have educated one child and have one to go. The pre-K and college are funded by lottery proceeds. We moved here years ago for DH to attend law school, and the education value is one reason we never considered moving again.

Yep! My school tuition was funded 100% by the Hope Scholarship, it is a great program!

 

[steph72276]

I think it's great that you're looking toward the future and anticipating assisting your unborn children with their education expenses. I would recommend waiting and putting money toward your other financial goals, and save 529 contributions or other specific college savings until your children are born. It sounds like you're a little overwhelmed by how you should prioritize your financial goals. Several people recommended Dave Ramsey, I think his plan is an easy, great place to start if you're overwhelmed. He recommends emergency fund, debt payoff, retirement, house, college, etc. in that order. I personally do not follow that order, and I would suggest the following.

1. Emergency fund -- do more than the $1000 he suggests you scrape together before paying off debt. Everyone has suggestions (3 months of salary, 6 months of salary) but just pick a number that you are happy with.

2. Retirement contributions -- if your employer offers matching contributions, go ahead and put in the maximum to take advantage of that free money. You'll be earning a 100% return. I suggest taking advantage of this no matter what -- even if you're paying off debt, etc. Don't throw away free money! If your employer matches up to a 5% contribution and you can't put away 5% right now, start with the most you can, and then bump it up 1% every few months or if you get a raise. It really adds up. I started contributing 5% years ago, and am up to 20%. I never felt it though, because I raised it so slowly. Everyone wants to start out aggressively and feels overwhelmed when they can't, but you have to start somewhere, so just jump in. You will get there!

I think that those are the two most important things. Have some cushion, put money towards your retirement and you'll be ahead of most people! After that you can decide to pay off any debt, save for a down payment if you want to own a home, pay for college, etc.

Our son was born 5 months ago and I just opened a 529 savings account for him. I debated about the best way to save for him (traditional investment accounts, savings account, or roth IRA.) A lot of people don't know that you can save for college in a Roth IRA. Roth IRAs work the same as 529 savings accounts in that you put after-tax dollars in them, and all contributions and earnings are withdrawn tax free in retirement. If you withdraw the money before your retirement age, you pay a 10% penalty and income tax on the earnings (you can withdraw your contributions at any time.) One exception is for higher education expenses -- you can withdraw money for higher education expenses and pay some income tax on the earnings only, and not have to pay the 10% early withdrawal penalty.

You might think that would effectively act as a normal savings account if you withdraw early and pay income tax on the earnings, but roth IRAs have a huge advantage over traditional savings accounts in the long term -- amounts under $1,000,000 are protected from creditors. Traditional savings accounts are prime targets for creditors in a financial crisis such as a bankruptcy. Both roth IRAs and 529 savings accounts are protect from bankruptcy (except for contributions made in the last 1-2 years, so people don't try to stash extra money there and then claim bankruptcy.) My husband and I are in a good financial place right now, but I dealt with cancer years ago and if it ever returns, I don't want to worry about millions in medical bills or a potential financial hardship to wipe out college savings for our child. Roth IRAs and 529 Savings accounts offer a better level of protection for all of the hard work of saving for your child's college.

Now, 529 savings account have another advantage over the Roth IRA, and this is a good one -- when the child goes to complete the FAFSA financial aid application and the parent's income and assets are taken into account, currently they only consider around 5% of the 529 savings account value -- major perk! So they "ignore" the other 95%.

My husband and I do not feel obligated for paying for our child's college in full, we just want to help as much as we can. We plan on purchasing a different house in the next three years and will take out a 15 year mortgage. Our house will be paid off before our children enter college. With no mortgage, we'll have the flexibility to help cash flow college expenses. I opened a 529 account that we contribute $400 monthly to, and we will also deposit money gifts from family members over the years. So we are saving some, but also plan to put ourselves in a place where we can help out more when they're in school.

Excellent post!

 

[GliderPoss]

Wow this is facinating topic! We don't have kids yet but in Oz things are a little different so I'm wondering if someone can clarify a few points for me?

1. Collage (called Uni here) is mostly paid for by the government scheme which pays your fees and once you finish and get a job that earns over a certain amount (think it's about $40K) your employer deducts a % amount each month to pay it back. There is no interest on the loan ever. You still need to pay for your own books though so most students have a part-time job waitressing etc. The average cost for a 4 year degree is about $20K I think (obviously it might depend on what you're studying). Parents paying for their kids uni is strickly for the super wealthy..... pretty unusual as far as I know! Does it really cost so much

2. Retirement - everyone has a superannuation fund. It is compulsory by law so every employer must take 9% (or more if you chose) of your wages and it gets put into a super fund of your choice. Is this not the same in the US?

 

[DivaDiamond007]

Wow this is facinating topic! We don't have kids yet but in Oz things are a little different so I'm wondering if someone can clarify a few points for me?

1. Collage (called Uni here) is mostly paid for by the government scheme which pays your fees and once you finish and get a job that earns over a certain amount (think it's about $40K) your employer deducts a % amount each month to pay it back. There is no interest on the loan ever. You still need to pay for your own books though so most students have a part-time job waitressing etc. The average cost for a 4 year degree is about $20K I think (obviously it might depend on what you're studying). Parents paying for their kids uni is strickly for the super wealthy..... pretty unusual as far as I know! Does it really cost so much

2. Retirement - everyone has a superannuation fund. It is compulsory by law so every employer must take 9% (or more if you chose) of your wages and it gets put into a super fund of your choice. Is this not the same in the US?

My thoughts:

1. Parents paying for their kids' college is basically for the super wealthy in the US, at least where I come from (NW Ohio). You pay for your tuition, fees and books out of your own money unless you qualify for grants or scholorships (FREE MONEY) or unless you are able to finance your college education through the use of loans - which can be private or subsidized by the government. The cost of college depends on what school you go to and how long you plan on being there. Where I come from the only people that get grants or scholorships are rich kids that don't need the money, smart rich kids that don't need the money, and "minorities". I put minorities in quotes because that basically means everyone except whites, unless you're white and on welfare. It's a joke, it really is. My parents are not rich, I'm not "smart" (solid C student), and I'm white and not on welfare so I financed my education and will pay for it until I'm 40.

2. I wish the US had a retirement system like that! We have Social Security. When you start working the government takes a percentage of your pay and puts it in a pot. People who then retire, become disabled, or who can convince the government that they can't work then can collect money from that pot on a monthly basis. The amount that one is able to collect depends on a few variables, which I don't totally understand. The obvious problem with this system is that there are now more people collecting benefits than money comimg in, which means that it's only a matter of time before the Social Security fund goes bankrupt. What this means for those my age (I'm 2 is that I will have paid into the fund my entire working life, but will never be able to collect the benefits.

What to do about Social Security is a hot-button issue with many in the US. Some say leave it like it is and collect a larger pecentage from workers to cover the gap while others say to "privitize" the system, making it similar to what you have in Oz. Another consideration is that many people in the US are living solely off of their Social Security payments, however, Social Security was never designed to be one's sole income so you have a lot of (ahem, older) people whining that if the system is privitized that they will be left without any income, which is a distinct possibiliy. It's a tough issue, and one that won't be easily resolved.

 

[diamondringlover]

LOL I was planning on winning the lottery or planning on him getting a full scholarship, neither happened so he only went 2 years, I took out private loans for half of the expenses the 1st year and he took out student loans for the other half, he managed to flunk part of the classes and then I made him get loans for all of the 2nd year because of his grades, then he dropped out. He worked all thru college and he is working now, he has a decent job in spite of dropping out...he dropped out n 2006 and he still owes alot of money, I got my share paid off...just makes me sad that owes money and no degree, oh well such is life, nothing I can do about it. I have another son in 8th grade and there if no planning as there isnt enough money, I will make the same arrangement with him that I made for his older brother, I will pay for half and the will all be private loans.

 

[cara]

Diva, SS in the US is still is running a surplus (more money coming in than going out) and has a substantial pile of extra money it has collected over the years. Yes, most projections do show it running a deficit starting in oh 30-odd years making certain assumptions about demographics, but it can remain solvent with relatively minor tweaks to the funding formulas. Politicians interested in dismantling Social Security like to blather on about how it is bankrupt and young people can't count on it to help their case for ending it or changing the system... But SS certainly isn't bankrupt today or even taking in less money than it is putting out!

However, most people will still need to save for retirement to supplement their social security as its not enough money for most people to live on fully in retirement and Medicare (which pays for health care for people over 65 in the US, for the non US-psers) is the program you should be worrying about. It is on some kind of train ride to insolvency with health costs escalating crazyily as they have been. Anyway.

How this relates to school costs? I guess just that people unsure of their retirement income need to save for that rather than fund their kids college. Kind of different than the approach in some asian countries where parents fund their kids education and count on their kid(s) to support them through retirement.

 

[Puppmom]

To pigggyback on what Cara said, I think they best thing you can do for your kids is to save for your own retirement so that they don't have to take care of you. My parents JUST started saving for retirement and they're in their early 60s. They'll either have to work forever or we'll have to take care of them.

 

[Bliss]

Cara, that makes a whole lot of sense. Thanks for the insight! DH and I agree we're going to foot the bill for college since our parents were willing to do the same for us - undergrad and graduate degrees. They just assumed that they would so they started saving early - it was always part of the plan. Maybe that helped them budget, knowing that was built into the big financial picture?

I agree with a lot of posters who say it shouldn't just be a free ride for kids who won't appreciate it. If there is a teen who is an unmotivated slacker, I would think that time spent abroad or a year spent soul searching before college would be in order for fresh perspective. But then again, I don't think those types of kids would get into the top tier schools either. There is just so much that is needed to get in - musical instrument, talent, extra curricular activities, sports, SAT scores, grades, interesting life story, great essays and etc. If they did the hard work to get in, we're going to pay... God willing, of course!

With how competitive it is to get into good schools, I doubt a slacker kid or someone who would languish afterward would even be accepted without *something* special. I guess we'll just have to use our best judgment. Sigh. Raising kids - it's going to be an interesting challenge! Will I pay a crazy private university tuition bill for some party school I've never heard of if our kid was a party party type person? Oh boy, ask me in about 18 years. The agony of parenthood, here we come!

Puppmom, I agree so much with you. My family is extremely well off and it is only now that I realize how big of a blessing it is not to have to worry about my parents living the good life. FIL, however, is always asking us for big chunks of money and we are forever worrying about him. What in the world happened to his pension is a great mystery... I think the stock market ate it. Sometimes I wonder what parents like FIL were thinking when they brought a child into the world. Do they think that's all that is required - just have the kid and we'll see what the future holds for his/her upbringing, education and etc? Thank goodness MIL was smart, held a stable career and planned ahead.

Seems so laissez faire and dangerous in a La Di Da way because life is so unpredictable. I wouldn't want to leave big important priorities to be left up to the fates, especially once you bring kids into the mix. It reminds me of the grasshopper that sang all summer long while the ant worked to build up a storehouse for the winter. Sure enough, when the winter came - the grasshopper was left out in the cold asking for handouts while the ant's family was provided for because of that hard work year 'round. If we couldn't pay for two tuitions, I would only have one child and be happy with that. But then again, maybe I'm too rigid in my views and need to loosen up a bit!

I just feel a tremendous responsibility for my child...and it took a lot of planning and thought before deciding to make that commitment. If I brought them into the world, I want to make sure they're going to have the tools they need to live a good life. The rest is up to them. But I'm not going to have them and set them loose to fend for themselves; it just seems unfair to go, "OK! You're 18. Have a nice life!" They'll be so behind everyone else and have stresses that I don't think they should have. I want to pay for college at the very least to give them a good starting base. Is that too idealistic?

 

[Mara]

"I just feel a tremendous responsibility for my child...and it took a lot of planning and thought before deciding to make that commitment. If I brought them into the world, I want to make sure they're going to have the tools they need to live a good life. The rest is up to them. But I'm not going to have them and set them loose to fend for themselves; it just seems unfair to go, "OK! You're 18. Have a nice life!" They'll be so behind everyone else and have stresses that I don't think they should have. I want to pay for college at the very least to give them a good starting base. Is that too idealistic? "

Ideally, you give them the tools to succeed in life (hopefully) through good parenting. To me that doesn't just automatically equal meaning springing for their entire college bill or putting them through a top-tier school.

I know plenty of people whose families did not have money at all and because these people are the way they were (personality, parenting, both...whatever?) they were able to work through hardship and succeed in life. I also know plenty of people whose parents had money and were given every possible opportunity and are total slackers with no real 'drive' to succeed.

And to play devils advocate ... re the "have stresses I don't think they should have"...wait they are 18 years old right? I guess it's dependent on the family but heck at 18 some people WERE forced out and had to start figuring out how to live. Is that ideal, well no but I don't think that kids at 18 years old need to be protected from LIFE--because that is what they need to be taught...how to live.

IMO much of these younger generations are WAY too sheltered from the harsh realities of life. Paying for everything for them just because they're good students to me is not a way to teach them about life and the responsibilities they'll have. Am I saying don't pay for your kid's education? Heck no. But for me something like that isn't a flat out given nor do I think that if we don't pay our kid's tuition for college it will mean they are 'behind' everyone else or somehow lacking or setup to fail.

Then again I am someone who paid my own way (with a little bit of help from my family here and there) and Greg as well. So I almost take offense to the notion that kids who aren't helped somehow won't get ahead. Granted--in 20 years who knows what things will be like. I just don't plan on stressing about it right now.

 

[Bliss]

Oh I agree with you, Mara. If it seemed like I was saying that *not* to pay for college would be indicative of failure, then I apologize. That is certainly NOT the case in ANY situation. You are right. There are TONS of kids (I almost want to say most success stories, even) who did not get a full ride to college paid for by their parents -- who ended up WAY more successful than the kids who got a full ride. A full ride can also be a dangerous thing because it can give a child a sense of entitlement and maybe even laziness knowing that for 4 years, they're completely covered.

What I mean to say is, I personally am going to try to give my child the best I can possibly offer. And that to me, is paying for college. I don't think there is a right answer that fits everyone. But this fits our goals and I personally would feel badly if we were unable to provide this for our children's futures. In my college experience, there were kids who had to choose between studying for an exam or going to work on an overnight shift at the campus coffee shop. I think that is tough and they *were* stressed out often. It's true, life is tough. No question about it. But if I can support them, why wouldn't I do so?

At 18, sure they can fend for themselves. But why would I want them to? Is paying for college really sheltering a kid and babying them? I don't think so from a personal standpoint. I plan on being a fair but tough parent. Paying for college isn't coddling them to me. I expect them to go, so I expect to pay. If they don't want to go or slack off, then no free college tuition! Yeah, that would be like pouring money down the drain. Anyway, I doubt they'd even have a shot in heck of getting into a top school if they slacked off even the tiniest bit. It's really so much harder to get in nowadays and will be even harder when our kids are grown.

My parents gave me a full ride to college but I still worked part time to pay for my extras. I just wanted to because I saw how hard my parents worked for money and didn't want to waste their contribution. It can also certainly backfire because I have friends who had everything taken care of and lacked motivation because they knew they would have a large inheritance with great jobs after graduation based on their parents' social connections. But none of them are doing poorly now. It's not a handicap to lack parental financial support but it can certainly help to have it in many cases, too.

Paying for college is an "extra" and sadly, in this economy - it is getting harder and harder to even provide this basic educational need. I do think college is a basic in a child's life - unless they decide to go blaze some spectacular Microsoft trail. It just enlightens and exposes kids to many different people, ideas and experiences. I don't think the end goal should be high school for many - they have their whole lives to work. I think those 4 years are priceless. Again, if they have another path, then that should be supported as well. If my kid says, "Mom, I have this great idea and want to innovate in X way...start Y company...explore Z options. College isn't for me." I would support that. If they were like, "Mom, college is pointless and I don't want to study anymore." I wouldn't force them to go. THAT would be a waste of money! I agree!

But if the child gets into a great school because she worked really hard, then I would absolutely pay for it and happily, too. How many of us here on PS are educated? Some of us struggled to get there, some are still struggling...but it was worth it, no? I consider everyone here a success story, I truly do. We all have different expectations. I feel if my parents raised me saying, "You're on your own after 18." It would be a different story - I wouldn't feel as strongly as I do today about paying for college for my own kids. They did this for me (not without sacrifices) and I feel strongly that I want to give this to my child/children as well. It really helped me a lot; and looking back, I don't know how I could have managed without their support.

Kids also have to study a LOT in college because of how competitive it is and there wasn't much time to spare as it was with all of the requirements. Their support took a big load off of me. If by some act of God we don't have it when our kids are ready to go to college, I would personally be heartbroken. But I will know that like other very smart people who have done well in life without their parents' support, they hopefully would, too.

 

[megumic]

thanks for the healthy debate ladies --- but now, pray tell, HOW exactly are you saving for this college!?!?

 

[Jennifer W]

I plan on paying for it out of my salary, to be honest. We do have savings, and will add to them over the next 16 years, but they are for various other things. Granted, I probably won't be paying for tuition fees, unless something goes badly wrong in Scotland, but I will pay for living expenses, text books and travel or rent. Assuming I'm healthy and still working, I don't see any reason not to do it from income, topped up from savings as necessary, I suppose.

 

[oobiecoo]

I just wanted to add something here... college tuition rates are NOT very high. You can pay for tuition and fees for under $5000 at most places it seems. The biggest expense is the room and board. I think I'm going to encourage my kids to go to school nearby so they can live at home and then we will pay their tuition. If they want to go out of state or out of town then they will have to get a job or loans to pay the difference.

 

[megumic]

I just wanted to add something here... college tuition rates are NOT very high. You can pay for tuition and fees for under $5000 at most places it seems. The biggest expense is the room and board. I think I'm going to encourage my kids to go to school nearby so they can live at home and then we will pay their tuition. If they want to go out of state or out of town then they will have to get a job or loans to pay the difference.

You're right -- in-state tuition is not as high as the numbers I initially projected. I was thinking worst-case-scenario: private school, no scholarships, room and board, books, the works. Here in NJ the in-state ranges from about $9k to $13k for tuition and fees, depending on the school.

 

[Haven]

We don't have kids yet, but this is something that DH and I have discussed off and on over the last few years. We're still considering our options, but I have to say that at this point it looks like we'll be saving for their college educations only after we've taken care of our own retirement funds.

We both value education. We both earned our undergrad degrees in public state universities, and we both paid for those degrees using a combination of scholarships and federal loans. DH paid for his master's degree (public state uni) using federal loans, and I paid for one of mine (private school) using federal loans, and my former employer paid for my second master's degree (from a private school) in whole. We've worked hard to pay those loans off, and now we only have a tiny bit left, and I really don't see anything wrong with expecting our future children to pay for their own educations, as well.

If we have the money to pay for part of their schooling, we will, but I think there is a lot to be said for partly paying your own way through college. I worked several jobs in undergrad, and I was a resident advisor so I could get free room and board, and those were really great experiences. I will have no problem expecting my future children to work in order to pay for their degrees, as well.

ETA: Of course, if I'm still a prof at a community college by the time our future children are in school, I will definitely encourage them to take their gen ed courses at my school, as they will be FREE for them.

 

[oobiecoo]

We don't have kids yet, but this is something that DH and I have discussed off and on over the last few years. We're still considering our options, but I have to say that at this point it looks like we'll be saving for their college educations only after we've taken care of our own retirement funds.

We both value education. We both earned our undergrad degrees in public state universities, and we both paid for those degrees using a combination of scholarships and federal loans. DH paid for his master's degree (public state uni) using federal loans, and I paid for one of mine (private school) using federal loans, and my former employer paid for my second master's degree (from a private school) in whole. We've worked hard to pay those loans off, and now we only have a tiny bit left, and I really don't see anything wrong with expecting our future children to pay for their own educations, as well.

If we have the money to pay for part of their schooling, we will, but I think there is a lot to be said for partly paying your own way through college. I worked several jobs in undergrad, and I was a resident advisor so I could get free room and board, and those were really great experiences. I will have no problem expecting my future children to work in order to pay for their degrees, as well.

ETA: Of course, if I'm still a prof at a community college by the time our future children are in school, I will definitely encourage them to take their gen ed courses at my school, as they will be FREE for them.

Community college for basics is a GREAT idea! Students can knock out classes that way while still in high school or just do it after they graduate. There's always CLEP, AP testing, etc as well... I wish I'd done all of those things.

 

[Blenheim]

Great post, Lyndsey!

Megumic, wow, I didn't realize student loan interest rates were that high. I'd always just heard that they were low...

Living at home- the school I went to had a 2-year residency requirement, and DH's school had a 4-year residency requirement. I realize that it was our choice to go to those schools though.

Hotpozzum - to add on to what others have said, it also sounds like schooling's more expensive here. Tuition, room and board is currently $40k/year where I went and $20k/year for in-state residents and $37k/year for out-of-state residents where DH went. This does not include books. And again, living on campus for at least a couple of years was mandatory.

As far as "how" we are saving for college, I suppose I should also mention that we were maxing out our Roth IRAs. We view it as retirement savings, but if we find that we need more money for college and are more than on track for retirement as we get closer to college, then we may use some of that money for college.

 

[oobiecoo]

Great post, Lyndsey!

Megumic, wow, I didn't realize student loan interest rates were that high. I'd always just heard that they were low...

Living at home- the school I went to had a 2-year residency requirement, and DH's school had a 4-year residency requirement. I realize that it was our choice to go to those schools though.

Hotpozzum - to add on to what others have said, it also sounds like schooling's more expensive here. Tuition, room and board is currently $40k/year where I went and $20k/year for in-state residents and $37k/year for out-of-state residents where DH went. This does not include books. And again, living on campus for at least a couple of years was mandatory.

As far as "how" we are saving for college, I suppose I should also mention that we were maxing out our Roth IRAs. We view it as retirement savings, but if we find that we need more money for college and are more than on track for retirement as we get closer to college, then we may use some of that money for college.

One of the Universities I attended had a 1 year residency requirement but it was waived if your parents lived within a 60 mile radius of the school... not sure if they all do that?

And for HOW to pay for college... DH is thinking a 529. I'm going to look into the UPromise program that I've heard about. We're planning to live on well below DH's salary when it increases significantly in a couple of years so it may be the case that we can just pay for the tuition out of the monthly income at the time.

 

[Blenheim]

Obiecoo - The schools were out in the middle of nowhere, so very very few students had families within a 60 mile radius and so I never heard anyone talk about whether or not they had that waiver. But again, we chose to go to those schools.

The UPromise account earns you money on purchases and the money just sits there until you put it in a 529, and so you would have to have a 529 as well. I know that I haven't taken advantage of all of its features - for example, I am very wary of linking it to one of our credit cards to earn money through eating out, I haven't used the e-coupons where you get money back into your account since they are all for stuff that we don't buy, and I don't want to get their credit card - but I have earned a total of $0.08. And yes, I just checked our balance. I guess that's 8 cents we would not otherwise have, but it's not exactly going to go far.

 

[violet02]

We don't have kids yet, but this is something that DH and I have discussed off and on over the last few years. We're still considering our options, but I have to say that at this point it looks like we'll be saving for their college educations only after we've taken care of our own retirement funds.

We both value education. We both earned our undergrad degrees in public state universities, and we both paid for those degrees using a combination of scholarships and federal loans. DH paid for his master's degree (public state uni) using federal loans, and I paid for one of mine (private school) using federal loans, and my former employer paid for my second master's degree (from a private school) in whole. We've worked hard to pay those loans off, and now we only have a tiny bit left, and I really don't see anything wrong with expecting our future children to pay for their own educations, as well.

If we have the money to pay for part of their schooling, we will, but I think there is a lot to be said for partly paying your own way through college. I worked several jobs in undergrad, and I was a resident advisor so I could get free room and board, and those were really great experiences. I will have no problem expecting my future children to work in order to pay for their degrees, as well.

ETA: Of course, if I'm still a prof at a community college by the time our future children are in school, I will definitely encourage them to take their gen ed courses at my school, as they will be FREE for them.

This topic has been weighing on me lately as I consider whether or not we're going to try and have a second child one day.

I did two years at a community college due to too much slacking my junior/senior years of high school. I really loved it and I enjoyed going quite a bit. I did the last two years of college at an expensive private college and got my degree from there. Does anyone even look at where I went the first two years? Nope! All they see is where I graduated from. I was able to pay for those first two years myself and work part-time and get straight A's so it was well worth it in the long run. I do have student loans from the private college but not nearly as bad had I gone all four years there.

 

[Haven]

violet--I'm glad you had a good experience at your CC.

I wanted to add that even *if* people looked at where you studied for your first two years of college, your experience in a CC would not look like a negative thing. I'm proud to teach in a community college. I'm proud of the education we provide, and I'm proud of my students.

 

[violet02]

violet--I'm glad you had a good experience at your CC.

I wanted to add that even *if* people looked at where you studied for your first two years of college, your experience in a CC would not look like a negative thing. I'm proud to teach in a community college. I'm proud of the education we provide, and I'm proud of my students.

Okay very true! I didn't meant that to sound like a negative. I loved my CC a lot and had a great experience there. It's just some of the companies around here put a lot of stock into where you went to college... or graduated from at least.

 

[janinegirly]

violet--I'm glad you had a good experience at your CC.

I wanted to add that even *if* people looked at where you studied for your first two years of college, your experience in a CC would not look like a negative thing. I'm proud to teach in a community college. I'm proud of the education we provide, and I'm proud of my students.

Okay very true! I didn't meant that to sound like a negative. I loved my CC a lot and had a great experience there. It's just some of the companies around here put a lot of stock into where you went to college... or graduated from at least.

This is very true--I mean there obviously is an extra benefit/cache to going to a prestigious school and employers and people in general will react to it - although it is just one part of the picture--it's not enough to carry you through. But this makes sense because if it wasn't the case then no one would bother to go to the more expensive/elite schools! Going to CC and transfering to top tiered school is a great way to do it actually...less expenses and all the benefits-however it isn't easy. You'd have to be very motivated in CC since schools only accept a small % of transfers and they'd have to be top of the top.