<p>Will someone PLEASE tell me just how it is possible for a family who earns approx. $100,000 (both self-employed parents, completely responsible for their own pensions, health ins. etc.) who have approx. $300,000 in assets be expected to pay almost $35,000 per year for college? This is the EFC that was given to me after I applied to the FAFSA. I just don't understand it- Do they expect we should spend part of that savings? How will we afford old age? Our IRA's are separate and now total approx. $100,000. Did I do something wrong on the calculations?????</p>
<p>We have a 2 income family with taxable income of around 119,000, and only around $12,000 in our savings account. I don't think anyone at our income level has 30 grand sitting around every year. We did save, but used it up the first year -- no middle class person can save the entire cost of 4 years of college! We own a home and have retirement accounts, but other than that no other assets, and we spent our son's UFund on last year's tuition. Our EFC is almost $30,000. I think the assumption is that you must borrow to send your child to a private college. We borrowed some last year using a PLUS loan and will this year. The payments are less overwhelming than spending that amount of cash up front, and the interest is tax deductible. I do not recommend spending retirement money on your child's tuition! Any withdrawal will be considered as income for next year and will further hurt your eligibility for financial aid. You can always borrow for your child's education, but you can't borrow for retirement. The only other option is to send your son or daughter to a state school or community college that is more affordable.</p>
<p>"...who have approx. $300,000 in assets be expected to pay almost $35,000 per year for college?" </p>
<p>Um-- how about pay for it out of the 300K? That's a pretty big hunk of change. So yes, you spend part of your savings to pay for college.</p>
<p>This is where the student has to get involved; applying for scholarships, working part-time, taking out subsidized loans (there are maximums that students may take out yearly), and not asking for cars and other expensive items which they could do without for the time they are in college. The student themselves needs to take a vested interest in their education. They will have plenty of years to reap what they sow.</p>
<p>And trust me, I know. I'm a single parent with a moderate income. I do not own a home. My car is 9 years old. My child and I split her contribution 50/50. I will not take loans. This is her education, not mine. Heck, I'm still paying off my student loans, and will be for another 5 years!</p>
<p>The problem is it's not just $35,000. Over 4 years it's $140,000 (that's if the tuition doesn't go up every year!). Almost half of your retirement savings are gone, savings that could be earning while your child is in school. I hope for your sake that these savings are in an IRA, Keogh, or 401K and not just sitting in a Savings account because then they do count as assets to FAFSA and college financial aid offices.</p>
<p>We have a similar retirement savings picture between IRAs and 401KS, and we chose to borrow because the interest on the Plus loan was lower than rate that our retirement vehicles were earning. We figure that we can afford the loan payments, and when we do retire, at least we'll have income if there are still outstanding loans. Whereas, if you spend your retirement, will your child be making enough to support all your needs because you will have run out of money within a couple of years? </p>
<p>As far as the student earning for college, I'm all for it, if your child has this kind of earning power. But I don't think my kid can pay half his tuition bill on what he earns from summer jobs.</p>
<p>Im wondering- when people planned to have kids- and they planned how many to have, and how to financially/physically/ and emotionally provide for them- did they not anticipate that their children would possibly have post high school expenses?</p>
<p>When taking on * new * debt, like adding on a deck or a trip to disneyland or expensive birthday presents, don't people consider how that debt will affect future choices?</p>
<p>If you can't afford to send your kids to an expensive college and you don't want to take on more debt- don't!</p>
<p>A full time summer job paying $8 an hour will earn almost $4,000 over a summer. Isn't that enough to pay for a community college, even if parents don't pay a cent?</p>
<p>Its too bad that instead of looking for ways to make something work- I hear too often both students and parents making excuses why * it is just too hard for them*
oh well- if you want to make it work you will- if it isn't apriority- it won't.</p>
<p>When we had children, we did not anticipate that college costs would have risen to the obscene level that they are at now. When I attended a small private women's college 30 years ago, the tuition was $2500. My dad, a school teacher, made around $25,000, and since there were 3 in school at the same time, we also got Pell Grants. We all graduated from college debt-free.</p>
<p>The average teacher's salary is now $40,000, but the cost of the same school is $20,000, so salaries have less than doubled, but tuition is almost ten times higher! And $20,000 is for a "cheap" private school, most are around $40,000. For someone making a "good salary", $100,000 or so, it's 40% of income, not 10% like in my father's day. </p>
<p>Yes, I'm willing to take on debt for my kid's education, but I am not willing to deny that higher education is once again becoming only for the elite and that parents and students are now being asked to take on staggering debts.</p>
<p>We did save for our children; it's just not possible to take care of their needs now, save for retirement, and save all they need for college. In fact, if it weren't for paycheck withholdings, the retirement savings would be significantly smaller. We only went to Disney once as a family, and that "fancy deck" on our home was actually to replace the one that was collapsing. Our teens share a used 95 Honda, not a brand-new BMW! Not all of us are living high on the hog and crying poor. </p>
<p>Do you suggest that only people who can save $120,000 per child (the cost of 4 years at a private college) have children? As to the suggestion that one send one's child to a community college, this might make sense if the student is not seriously committed to his high school studies and still needs some direction. But is community college appropriate placement for someone scoring 700+ on SATs and in the top 10% of his or her class? I've taught at community college, and many of the students there need considerable remedial help (I've spent a lot of time on things they should have learned in high school), or are studying a vocational trade. You're going to put someone whose curriculum consisted of Honors and AP courses in that type of program? Better to save the $4000 and have the kid take a "break" and just work full-time for a year. That is the other alternative to borrowing and perhaps the reason more and more students are taking the "gap" year.</p>
<p>But is community college appropriate placement for someone scoring 700+ on SATs and in the top 10% of his or her class? I've taught at community college, and many of the students there need considerable remedial help</p>
<p>Sure why not?
If they are that unusual- surely they can find merit aid.
If they are that hardworking- they can work summers to earn money & work while they are going to school.
.
Students who are taking remedial classes, will not be in the same courses as students who are taking their pre-reqs for med school, as my daughter found, when she took classes at a community college, while taking a break from Reed college.</p>
<p>We also know students who have taken two years at a community college and then recieved their bachelors degree, two years later from schools like University of Chicago and Oberlin.
If schools of that caliber- are satisfied with the level of courses at the community college- for transfer, shouldn't that be good enough for us?</p>
<p>Im not saying that it would be an optimum choice for all students, at all times.However it is an option- and I haven't heard a reason yet that it shouldn't be considerered. I not only know students who take community college courses that prepare them just fine for a higher "tier" college, but I know several community college instructors, who are now profs at schools like Lewis and Clark and Northwestern.
If people are really that concerned about a prestigous window cling- I hear that Oxford doesn't require to see your tuition bill before the bookstore will sell you one. ;)</p>
<p>If youd rather work to earn money and take a year off from school thats great. That certainly is a lot more proactive than sitting in a corner and moping about how you can't afford any post high school education.
Lots of students can't afford even a 4 year state school inc room and board- but they make decisions for themselves, that take them farther on the path toward their goal-</p>
<p>Maybe you can't afford the brand name of education you want- oh well- I can't afford to live in Lahaina-:(</p>
<p>You can either be the kind of person that makes it work- or the kind of person that makes excuses-
Ive seen a lot of both</p>
<p>That $300,000 in assets is generating almost $14,000 in EFC. If there's money in your student's name, that will really drive it up. At this point in time, you'll be hard pressed to improve upon it. You may want to make changes now and give up on any hope of financial help for the upcoming year. However, if you have already filed your FAFSA, then you've already set a baseline. ugh.</p>
<p>As for community colleges, I've taught at a community college and found the students to be very good. Not the stereotypical slackers that make us cringe at the thought of sending our students there. The CC's are always a good fall-back position. Now of course much depends upon your local CC. I'm sure there are some, as with all schools, where you would not send your student.</p>