<p>OK, I have to admit I do not understand the funding plan.</p>
<p>If you only had $140k to spend on college I would understand that limit. It seems the limit is more of an artificial limit to ensure your daughter has some skin in the game. However, at this limit I believe she could go to a California state school for that $140k and not have to work summers or during school … and, if accepted, not be able to attend MIT even if she worked summers, during school, and took our federally financed loans. That doesn’t seem to meet your stated goals. </p>
<p>How about something like we’ll pay for school minus summer earnings and minus school year earning (and possibly minus federal loans) … and any merit awards reduce the money she is expected to earn from jobs. If your goal is for her to be “responsible” while in college and allow the most good options alternative approaches might work better … skin in game at any school and more options.</p>
<p>(PS - Mom3ToGo and I have created an “artificial” limit on what we will pay which does force our kids to have some skin in the game).</p>