<p>We had very "fuzzy" & vague ideas of how much we were actually going to pay for our S to attend college, since he applied to schools which offered him the gamit of NO money to full-ride, all based on merit-only. We had always figured we'd have to pay in full for whatever schooling our kids chose, except for whatever merit aid they received Fortunately, S chose a school that offered him > $80,000 over 4 years and is extremely happy there & doing very well.
Each year, we'll have to somehow come up with the $25,000-$30,000 cost of attendance that his merit aid doesn't cover. The school is a good match for him, with a rising reputation in engineering, which is is field. We were sad he wouldn't consider the full-rides at "lower ranked" huge out-of-state Us, but ihonestly he did make the right choice for him.</p>
<p>The HS counselor recommended students not take on more than $15,000-20,000 in student loans over 4 years. We have some savings & some savings in S's name, so we'll likely not have him take on any debt, paying everything out of earnings and savings. Our D starts college in 2 years, so finances should get a bit more strained at that point.</p>
<p>Full pay does not always equate to top 3-5%. Schools that do not use FAFSA add the value of your home to the EFC equation. Anyone live in a place where home values went up a little in the last ten years? This can be a shock to low to mid income folks.</p>
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a family making $200,000/yr in oregon, wyoming, sourth carolina is in a completely different financial situation vs. say a family living in long island, north jersey, connecticut, chicago suburbs, etc.
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<p>I just don't buy this. 200k is a ton of money, wherever you are. Please keep in mind that the vast majority of people around that 200K person in LI, or NJ, or CONN, etc. are getting by on a fraction of that amount.</p>
<p>I live in North Jersey. We are ten miles from NYC. Our income is less than half 200K, yet we sent our kids to top schools. We did used to have a somewhat higher income, but never nearly that much. We have not received one cent of FA except a loan, yet we find paying for college doable. </p>
<p>Again, it's the choices you make. I get a little tired of the "well, I live in a rich area so I have to live like this." No. You don't. Millions of people exist in the Tristate region on incomes that you can't even imagine. The students I counsel at the college where I work live in this North Jersey area, too. Their family incomes would stun most posters here. What they have to do to get an education would also stun most posters here.</p>
<p>It really helps me keep things in perspective. I don't need the money--they do. And they usually don't get enough. I feel rich, on a fraction of what some people deem "middle class."</p>
<p>"Full pay does not always equate to top 3-5%. Schools that do not use FAFSA add the value of your home to the EFC equation."</p>
<p>Actually, just the opposite is true. Houses are ASSETS, and can be borrowed against. Houses in high-cost areas are even greater assets, assets that middle percentile folks just don't have access to.</p>
<p>What is true is that those in the top 5%, but not in the top 3%, have significantly less in the way of assets than those in the top 3%. However, NO college expects the cost to be paid out of current income, but out of savings past, or savings future (the value of income increasing, paying off college bills in depreciated dollars.)</p>
<p>Which isn't to say that it is always easy. Only that those not in the top 3-5% don't even get to ask whether it is easy.</p>
<p>Garland & I live within a stone's throw of each other. I agree that it is largely choices that determine how one lives, how affordable college will be, and how dependent one becomes on "necessities" that are actually luxuries.</p>
<p>That being said, in my modest home that is half the size of my relatives in MD or SC or FL, I pay five times the property taxes. Enormous amount of $$$ turned over in car insurance & state income tax. Music lesson are at least double. Home repairs, too. The list goes on.</p>
<p>I'm not as frugal as garland. I've admired some of her accounts of penny pinching on past threads. But I am the child of Depression era parents. I guess I fall somewhere between people who can their own peaches and those who buy Coach bags & ipods for eight year olds (yes we have them in my son's school.)</p>
<p>Sticker shock, Our way of life is probably similar to yours, and I am from the same backround. I will agree about cost of living in NJ, though MD may be pricey too. I have relatives in the south who have a much nicer home and lifestyle on similar to less income. Don't forget what medical insurance in our area costs for those that need to buy a plan (we do). Our health care plan costs/year as much as the entire COA for many instate colleges.</p>
<p>StickerShock, I totally agree with what you say. I own a home - a large, 3/2 pool home on nearly a half acre, also has a garage - in one city. I rent a very small 2/1 apartment in another city. The 2/1 apartment is so small that the kitchen does not even have counter space; if one person tries to blow dry their hair, the other person must turn off the ac and the television; have to park on the street, etc. </p>
<p>The rent on the 2/1 is $200 per month MORE than the principal, interest, taxes and insurance on my 3/2 home. Also, in the city where I rent the apartment, my drycleaning bills are $300/month easy compared to maybe $80 at home; gas is $.30 more per gallon; the electric bill is double what I pay for electric at my house, and, I pay triple the amount of annual dues to belong to the same type of athletic club in my home city. Car insurance - OMG. Huge difference. I haven't compared groceries but for sure to go out to eat at a nice restaurant is nearly double the price as well. But you're right, the list goes on. </p>
<p>I spend more and more time in the far more expensive city because there is so much to do there, but, I completely agree that there are huge differences in how far one's income will stretch depending on where one lives.</p>
<p>I wonder how - or if - financial aid offices take such differences into consideration.</p>
<p>That is what I said. I should know, our EFC is much higher than we ever thought because of the value of our home, not due to our income or other assets. Just wanted to prepare people who have limited income and investment assets but live in a valuable home- watch out if you have to file the College Board profile. BTW our cost of living in Alaska equals any metro area in the country.</p>
<p>LTS, it is amazing to see such disparity, isn't it? </p>
<p>I'm a pretty no-frills type gal. I dye my own hair & probably save at least $1000 each year by doing that. I'll put a movie on the Netflex queue rather than buying the DVD. A super-disciplined person might borrow DVDs from the library to really cut down. But it's those big ticket items like insurance and property taxes, things we can't easily control (short of pulling up roots & moving) that really impact cost of living.</p>
<p>I do laugh at my skewed spending habits sometimes. I refused to buy a red pepper at $4.99 a pound the other day. (Substituted a green one in the recipe.) But I'll spend thousands each year on the kids' music lessons.</p>
<p>^^OMG insurance - just - over the top ridiculous. Out of control.</p>
<p>Oh, and it just now sunk in what you said about the red pepper - I pay $3.40-ish for them. I think I would faint if they were $4.99 - that's huge. Really, really out of sight...I wonder why, too? Transportation/fuel costs to get them to your region of the country?</p>
<p>I don't know anything about the cost of living in NJ. Years ago when I moved from Arizona to Long Island, I quickly found it was impossible to maintain my former modest standard of living. That would have taken about twice the income. Everything is much more expensive but it is the taxes that really make the difference. My property taxes are almost a $1000/month on a modest house. I paid less than that annually in AZ.</p>
<p>I'm with you edad. I have the same problem. My taxes run about 9K on a 900sqft home on Long Island.</p>
<p>Anyway, for us, in this case, sending our kid to a better school may have to be in order. Honestly, I had no clue what I was going to spend a year ago. Now (overtime), I have had time to adjust to the idea that 45K/yr will be worth it.</p>
<p>Even in lowly old Rochester our property taxes are $12,000 on a 2500 sq ft house in a dumb town. </p>
<p>How about health insurance? My husband's company went with some health insurance that costs us $450/month in premiums AND has a $6500 out of pocket deductible before it covers ANYTHING. What a deal. (That and the 3% raises - oh - but the CEO made an extra ten trillion or something ;) last year. Oh well at least he has a job which is more than I can say for many upstaters.)</p>
<p>"Also, in the city where I rent the apartment, my drycleaning bills are $300/month easy compared to maybe $80 at home"</p>
<p>DRYCLEANING? :eek: :eek: :eek:</p>
<p>(my income puts me in top 35-40% in the nation, and I am absolutely sure I haven't spent $300 in drycleaning in the past 10 years. I think we've just hit on another place where top 3-5%ers differ from us upper middle class folk.)</p>
<p>I used to have a suit-and-tie job, and that is when I occasionally resorted to dry-cleaning. But less than $300 lifetime might be correct for me too. I substitute walks to do my shopping for joining an athletic club--that saves on gasoline and car repairs too.</p>