Help from those who've trod a similar path. Is this feasible?

Colleges & Universities A-Z University of Southern California
1

<p>My D has been accepted at USC Viterbi and is a Presidential Scholar. Our EFC is pretty high (around 39K) and she was given another $2,000 per year scholarship. I’m afraid we may not be able to afford USC overall and I’ve been racking my brains to figure out how to make it work without large loans. So I’m brainstorming, please let me know what might work:
COA is listed as $60,034. I want to break it down into what’s billable and what’s not for cashflow purposes.</p>

<p>Billable:
Tuition S1= $21,862 S2= $21,862
Fees S1= $371 S2= $370
R&B S1=$6,220 S2= $6,220
Total ($56,905) S1=$28,453 S2= $28452</p>

<p>Scholarships: S1= $11,931 S2=$11,931</p>

<p>Billable bal. S1=$16,522 S2=$16,521</p>

<p>Fall semester: I pay $4,000 out of pocket, which should qualify for the American Opp. Tax Credit. Then we can pay $9,500 from 529 account and D pays the balance from summer earnings ($3,022). It should look like this:</p>

<p>16,522 – 4,000 – 9,500 – 3,022 = 0 Billable expenses are covered. :)</p>

<p>Then we pay for the other misc. stuff out of our current cash flow, both D’s and ours. We live in Colorado so flights to LA shouldn't be too bad.</p>

<p>Spring, 13
We pay the $2,500 we get from the Tax Credit towards billable expenses, $9,500 from 529 and D takes a loan for the balance ($4521).</p>

<p>16521 – 2,500 – 9,500 – 4521 = 0 Billable expenses are covered. :)</p>

<p>So the rest comes out of our regular expenses, which might hopefully be offset by not having to feed her at home, not buying a prom dress, not paying for gas for her car, lower auto insurance since she’s not driving, etc.</p>

<p>For the following year, she might have to get more loans but stay within the federal loan limits, which should be manageable if she stays in Engineering. Our 529 should allow similar withdrawals for following years and she should be able to reduce her R&B costs as she gets older.</p>

<p>Are these reasonable assumptions? I’m asking this question because at first blush, looking at USC’s COA versus her scholarships it looked like we were very short. But looking at is this way, it looks like we could swing it.</p>

<p>Please let me know if my assumptions are faulty. I don't want to go forward with something that won't work and ends up burdening her with too much debt. She has some great safeties but really wants to go to USC. So I don't want to dash her hopes one way or another because of inaccurate assumptions.</p>

2

<p>R&B can definitely go down in future years if your D chooses less expensive USC housing or moves off campus to cheaper housing. The meal plan is also a great place for future savings (especially for girls— my sons might actually eat what they pay for, lol). The R&B charge for next year will depend on where your D lives and in what type of room (check the housing site for specific pricing).</p>

<p>If you D has any classes with a lab (you will figure this out at orientation when she registers for classes) there will be extra fees. My D had 2 classes each semester this year with labs and that added an extra $600 each semester. Next semester she will have 3 labs!! </p>

<p>There is also a $400 fee for insurance (per semester, I think-- we opted out) which is automatically added to your financial statement— you will need to fill out a form and prove you have the required private insurance to get rid of this. Not that big of a deal, but you do need to do it each year. </p>

<p>The $800 housing deposit paid this spring will come off in 2 chunks ($400 each semester) as a credit on your financial statement too. </p>

<p>Books can be bought online and borrowed from friends (who have already taken class) to save some money as well.</p>

3

<p>Viterbi has some departmental scholarships for high performing students. My D was awarded $10,000 annually in junior year based on grades and performance in the department. She did not apply but was nominated by the faculty. Your D may qualify for additional funds once she enrolls.</p>

4

<p>Chegg for book rental has worked great for us. Saved so much money and easy to use.</p>

<p>Also - sometimes purchasing a one way airline ticket saves money - check both prices. The return can be more expensive due to how far in advance you are purchasing. We have airline cc cards and have saved a lot of money using the points to buy tickets. You have to weigh the fees associated with some though.</p>

<p>D (not at USC but similar sized uni back east) had friends that all needed quite a bit more money for expenditure accounts (not sure what it is called at USC - like a debit campus account w/card) but we only had to send an extra $100 at the end of freshman year. A lot of the extra expenses can come from socializing off campus so that is the conversation to have ahead of time. </p>

<p>If study abroad is on the horizon - be prepared. A friend who’s D studied in Spain spent an extra 8K. Our D in China now will be an extra $3K per semester.</p>

<p>Regarding the tax credit - You can pull up form 8963 on the IRS website and run your own numbers. There is part III and IV that determine exactly how much you get - it can be less than $2500.</p>

<p>I guess the main advice I have is to plan that there will be extra costs - they are not really horrible but you don’t want to be completely caught off guard when they occur.</p>

<p>Sounds like you are looking at the total picture - great thread! I’m sure this is helpful for others as well.</p>

5

<p>^^^Thanks for the heads up. These are some of the things I want to understand better.</p>

<p>D just received word that she’s been awarded the Engineering Merit Scholarship of $2500 for next year, which is renewable with a B average and progress towards her degree. She would have to apply by March 1st to continue it (which might be a high hurdle for her if they don’t send her a reminder email.)</p>

<p>BUT they go on to say</p>

<p>If you are receiving other scholarships or need-based assistance, this scholarship will be coordinated into your financial aid package and used to enhance the quality of that package according to the “USC Scholarship Guide”</p>

<p>The scholarship guide uses that universally helpful expression “USC Merit Scholarships may reduce these [financial] aid amounts”. So worst case, the Engineering scholarship will mean they take away the $2000 University Scholarship that was awarded outside the Presidential Scholarship. </p>

<p>If anyone has personal experience with this, I’d be interested on hearing. I will call the financial aid office tomorrow to find out from the horse’s mouth.</p>

<p>My DH is very worried about the cost of all of this, as I was talking to him tonight he got a very constipated look on his face. I really wish this were easier. I guess if we send D to community college instead, it would be.</p>

6

<p>I’d guess that the scholarship would stack with the others unless you have any non-merit financial aid “grants”. It may reduce that, but if this is all merit, then it should get added. Definitely call tomorrow to confirm!</p>

7

<p>@camom, what kind of labs were these? </p>

<p>I saw on the fee list that lab fees could run from $5 - $500 per lab, which is a huge range. Since D is planning to study engineering, some of those science labs could get pricey.</p>

8

<p>One clarification–all students have to pay the University Student Health Fee but can opt out of student insurance IF they complete the form & show adequate proof of insurance. Under the Healthcare Reform Act, many people under 26 can remain covered under their parent’s health plan, so it pays to check.</p>

<p>I agree that it is important to try to plan for unexpected expenses that can pop up, as well as increases in tuition (which unfortunately occur at most schools, including USC). One expense that can occur includes trips to visit friends/classmates and/or other expenses. Room & Board CAN vary as well. Our kids spent less once they moved out of the dorms & less still when they lived in less expensive, older apartments and cooked on their own.</p>

<p>I’m impressed that you have a sizeable 529 account that you can draw down on each year. IF you & your H can help pay any of the schooling out of current earnings and even take on a small loan, it sounds like this could definitely be do-able for your D.</p>

<p>As was mentioned, there are opportunities for students to earn more or be awarded more once they enroll. Our S started doing research in his JR year in Viterbi. He also got several scholarships in his JR & SR years, that helped further reduce his cost of attendance. His new scholarships more than offset the increases in tuition, lab & other fees. The research & publications helped him qualify for many job opportunities–summer and the excellent job offers he got as a SR, one of which he accepted & is now working at.</p>

<p>It IS scary when you think about the total amount that college costs; the Presidential award is a HUGE discount. To be honest, we were scared sending S to USC, even with the Presidential scholarship, even tho our 529 was very meager. It worked out so well, we allowed our D to join our S, even tho we have had to pay full-freight for her. Fortunately, things have worked out & we paid via their installment plan–you can sign up for it & it only costs about $40/term. You can even pay by credit card, which is how we pay–we get back 2% from our credit card company–some people prefer to get mileage or whatever else their credit card awards them. It comes out in 5 equal installments over the course of the term, which is MUCH easier than one huge hunk all at once. We expect to make our FINAL installment on May 1! </p>

<p>Congratulations to your D!</p>

9

<p>I just paid UT Austin admission fee ($300), Orientation fee ($300), and started making arrangements for travel when I got an email saying my son had received a University Grant from USC in addition to the USC Associate’s scholarship. All of a sudden- USC is affordable, so we’re now in the same boat, trying to decide which school to go to! The grant has to be renewed every year, and I was wondering if anyone is aware and has used the option to pre-pay tuition for 2 - 5 years? We have enough in the 529 account to cover 4 years of tuition, but are concerned regarding the grant, that it could be reduced in future years.</p>

10

<p>When our kids were attending, we were told that we couldn’t pre-pay if your kids were receiving ANY aid–merit or FAid. Would double-check to be sure whether this is still the case. In any case, we didn’t have enough cash to pre-pay, so didn’t explore very hard.</p>

<p>One option that was helpful to us is that anyone can sign up for the installment plan to pay tuition. You fill out a form on-line & can pay by credit card or checking account (perhaps other means as well). This spreads payments out over 5 months/term instead of having to pay it all at once, which was very helpful to us in paying out of current income and drawing down some savings. It allows you to pay all USC costs this way, including meal plan & USC housing.</p>

<p>Friends we had who received FAid at USC were able to get good FAid all the years their kids were at USC. Their kids maintained good grades & their financial situations were stable. Did not receive any FAid so have no direct knowledge.</p>

11

<p>Duke58, congrats to your S. Our S1 was awarded a University Scholarship that has renewed each year without any forms/conditions. He does not receive FinAid but does have the Trustee. It was my understanding these scholarships automatically renew, but I’m sure you should ask the FinAid office. They are quite helpful.</p>

<p>Not sure about the prepay options. The advantage, I believe, is that one then locks the current year tuition for the 4 years? Nice.</p>

12

<p>I did ask at orientation last summer about the pre-pay plan with merit scholarships (Pres plus). I was told that you had to pay for the full 2, 3, or 4 years in full (meaning, you couldn’t subtract the scholarship amount). Thus, it doesn’t work for those with scholarships. However, I did ask if you could pay for 2 years and use the extra left over (not used due to scholarships) when those two years are over to pay for your additional 2 years. They didn’t seem to understand the question. I didn’t follow up because there were so many other parents with questions in the room at the time. Also, it didn’t seem to lock in much savings only doing it for 2 years (pulling out 4 years worth of money for 2 years of savings vs. keeping it growing in the 529).</p>

13

<p>@2girls-- D took Chem and Bio this year, both with labs. They seem to be the pricey ones. </p>

<p>You can check the Fall 2012 Class Schedule list for specific fees attached to each class. This is a little difficult to do until orientation when your D will schedule with her advisor, but you could get a sense of how much these fees might be. </p>

<p>Since D was pretty sure what classes she was going to take, we looked this up to have an idea about added fees. It may be harder in engineering, idk, sorry!</p>

<p>You can find the Fall 2012 Schedule of classes here:</p>

<p>[Fall</a> 2012 | Schedule of Classes](<a href=“http://web-app.usc.edu/soc/20123]Fall”>302 Found)</p>

14

<p>Also, freshman year there are orientation costs as well. There is both the summer orientation costs and the new student orientation fee (which are for the fall semester). When I saw this orientation fee listed of the list of “tuition and fees” I figured this cost was for the summer session, but it wasn’t. You pay for that separately.</p>

15

<p>@2girls-I am trodding the path X 2 right now. (Next year, S3 will be a freshman at USC Viterbi, so we will have 3 in college-hope your D will be a classmate!) You will win the Parent/Student frugality award if you can get her through USC with <250K in college-related costs over 4 years (I am not accounting for tuition/fee increases). Having a child in college is like owning a boat-you will never struggle to find ways to spend your extra money. For me, last weekend was the purchase of an interview suit (and shoes, belt, tie) for S1, two weekends ago were Easter baskets X 2, three weekends ago was a parents’ formal for S2, etc.</p>

<p>From your numbers, you have reliable sources of payment (not including loans) that total about 195K. The other 55K will have to come from your D (work, loans, being thrifty) and from you (lifestyle changes, loans, windfall from D not being at home, etc.).</p>

<p>Is your D willing to maximize summer earnings and savings? Is the co-op program an option for her? Can she co-op while receiving the Presidential Scholarship and University Scholarships? Can she secure more scholarship money during her four years? Are research jobs available during the school year, and can she handle the increased responsibility?</p>

<p>In my opinion, it sounds like she can attend without a ridiculous loan obligation. However, it will require constant attention to detail for four years to keep the expenses in check. My S has this incredibly good feeling about USC and Viterbi, and I think that his time at USC will be worth the financial effort that will be expended. Good luck!</p>

16

<p>Thanks for the words of encouragement everyone!!!</p>

<p>@Himom, thank you for the perspective. I just emailed a friend of mine whose D went to USC - from Hawaii too :slight_smile: I’ve got myself convinced that we can make a go of USC if we work at it. </p>

<p>My H is in fits about the prospect of extra costs and of D having to take out loans. And she would only be able to get the Unsub loans, which have a terrible interest rate. </p>

<p>D is being “mum” on which way she’s leaning. If she goes to the other school (Bama), she would have no loans, not have to work so hard at a job during school and over the summer and we might be able to put some money into a Roth IRA with what we don’t have to shell out to a school. But where she wants to go is where I want her to go. And who knows, part of me wants her to have the experience of working her little tail off.</p>

<p>Time will tell.</p>