<p>My situation is similar to Xwords59 in another thread except that my total FAFSA EFC is around $30K (assuming one kid in college) and I have twin boys as college freshmen. DS3 is a HS Junior. Our state school has a pretty decent business program and offers merit aid covering the tuition. My twin boys have received the awards. DS3 may be able to get more scholarship due to his stats. It is a really not a bad option for him to go there too. However, I think that he will be challenged more in a better school especially for his intended major. I have told him that it might be worthwhile for our family to provide $10-$15K more per year for him to go to an elite school compared to our state school. We can probably afford with a good size dent on my retirement fund. If he is lucky enough to get into an elite school, I would like for him to borrow some money himself just as a reminder about the price he has to pay. We plan to apply 13-15 schools with our state college as a safety. Is it reasonable? Any thoughts/comments are appreciated.</p>
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<p>I wouldn’t recommend this. Unless it’s for something urgent like medical bills, not diving into your retirement funds is a basic part of living within your means IMO. I think that’s a good thing to teach kids by example. </p>
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<p>That really depends on which schools, how extensive their supplements are, how many scholarship essays, etc. The problem with more schools is when the quality of the applications is reduced due to lack of time to put into each one. Also, what matters in addition to the number of schools is the spread of safety/match/reach schools on the list.</p>
<p>awards. DS3 may be able to get more scholarship due to his stats. It is a really not a bad option for him to go there too. However, I think that he will be challenged more in a better school especially for his intended major. I h</p>
<p>What is his intended major?</p>
<p>Frankly, there are very few majors (maybe 2??) that require a student to go to a more elite school for undergrad. </p>
<p>It sounds like you’ve been advised by people who assume that an elite school is needed because S3 is a top student. They may not realize that many “top students” go to flagships and other non-elite schools, are challenged, and go on to grad school (if desired), and become very successful. </p>
<p>I would never jeopardize my retirement. And, unless my other kids were flakey students, I would not spend more on one child because he’s “smarter” than the others - when the others are smart and good students. Obviously the twins are strong students if their school is giving them free tuition. ("oh, the state school was good enough for you two, but not for S3 who is smarter.’) ugh!</p>
<p>If S3 were able to snag some merit money to lessen the cost at a better school, then fine. To spend more on him AND spent retirement money is just a bad idea.</p>
<p>BTW…if his intended major is very challenging, then it likely will be so at most schools. Better students tend towards the harder majors.</p>
<p>Are your best state schools Indiana and Purdue? If so, what major would S3 be that wouldn’t be challenging enough at either school?</p>
<p>You can always try out other options, once your base is covered, and yours is with the state school. So, IMO, go right on ahead. Just make sure HE and you understand that the likely path is the state school. Where the trouble arises, is when the kid gets into his head that he HAS to go to a school due its name and reputaion, and it puts the family finances at risk. </p>
<p>Bear in mind that if you break into a qualified retirement fund, those proceeds are added to your income the following year, and will reduce your financial aid, in the most drastic way, since income is the main driver of EFC. Better to borrow from it or take out a PLUS or other type of loan and repay it from retirement funds when the college years are over. Though as others have said, dipping into those funds at all is not advisable without really good reason, and the differential that a college name will give is oftnen not a good reason at all.</p>
<p>entomom & mom2collegekids,</p>
<p>Thanks for the comments/questions. DS3 will apply for admission to IU’s Kelley School of Business. For other schools in the reach category, he may apply for Econ with math minor. I can find few schools in the match category worth of paying much more. He will work on the applications/essays during this summer. </p>
<p>Since I am covered under a traditional pension plan, the dent is tolerable. DS1 may apply for med school after two years. I will probably chip in some if he can make it. But, I will let him get the loan first to avoid this financial bottleneck. DS2 has no plan for advanced degree. I can write him a promissory note to make things even. The boys had no complaints on this. </p>
<p>I have told them that I would only entertain the ideas of letting them apply for admission to elite colleges if their SAT is over 2300 with an uw GPA of 4.0. I told DS3 that he should target 5x7 + 4x1 or better on AP examinations after this semester. The last thing I want to see is if he falls to the bottom of the pile at an elite college. If he can make it, it would be difficult for me to change position. </p>
<p>cptofthehouse,</p>
<p>Thanks for the advice. I do need to manage the fund withdraw from my 401K without incurring a big tax bite. Like you said, I need to manage his expectation too. It seems to me that going to a program substantially better than Kelley will challenge him and provide better opportunities for him. But, if the financials do not work out, he should go to Kelley and I know that there are plenty of opportunities there.</p>
<p>It’s not just the tax bite. FAFSA and other financial aid applications count that as income when evaluating need and you will get hit with an increase in EFC from doing that. As much as 40%$of what you take out can go towards the EFC, on top of the increase in taxes for that year. It’s a heavy blow.</p>
<p>Good point…that would be shocking. Imagine withdrawing $25k from your retirement to put towards an elite U’s family contribution, and then the following year all your aid disappears because your “income” increased.</p>
<p>mom2collegekids and cptofthehouse,</p>
<p>Thanks. Indeed, I think that I could pursue the HELOC route to bridge the gap. I thought that I don’t need to get a loan anymore after paying off the mortgage. I guess that I will have to do it.</p>
<p>You don’t HAVE to do anything. I’m curious how you would ascertain that a particular college or university is “better.” Applying to 13-15 colleges is probably not necessary. If you are curious about what you might get in finaid or acceptances pick a few reach ones that are known for finaid or good merit discounting. Can you even think of 13-15 that are better than IU? We’re fortunate to have excellent universities in Big 10 country and even though they aren’t “cheap” they are a bargain when you are in-state.</p>