“I believe he has a small house, maybe less than $1 million but not NYC pricing. I know people in the Midwest think it’s a lot of money but it’s not a lot around here.”
Really, spare me, there are suburbs here where $1MM buys you very little, so don’t do the whole “it’s so different in the midwest.”
BTW, I think it’s VERY common - at least in states where going to the state flagship is a perfectly fine alternative for a good student, and won’t really hamper them in any way career-wise - for people to say “I will fund my kid to the cost of the state flagship, but no more.” It’s not what I would personally do, but it’s hard for me to say that such a person is “wrong.”
I’ll add my “oh please” comments.
A >$300,000 a year income is a mighty fine income…even in NYC.
A house with a values of just less than $1,000,000 is a really nice house in just about every real estate market…except perhaps NYC and the greater San Francisco area.
I agree with PG regarding this family’s actual ability to pay, it’s probably there. But sounds like the family does not want to pay a lot for college…which is certainly their decision.
@OP. Be careful if you seriously look at Miami. It’s a great school and gives out great scholarships BUT they charge fees like crazy. We have a family friends who have a freshman daughter who got a full tuition scholarship and their hill for the year will be almost $18,000!
Pizza, I don’t doubt there are million dollar houses in the Midwest, but here in CA it’s not a huge house, it’s a little bigger than starter home. Maybe around 2300 sqft with almost no land as in less than 5000 sqft lot. I’ve heard it’s small, my coworker bought it at recession price for $750k.
$80k times 3 kids is $240k That is still a good bit of money. We shouldn’t be acting like the parents are ridiculous, especially when the two main instate choices - Indiana and Purdue - are such good choices.
I still suspect that the income has increased a lot lately since mom was $125k off in her estimate of the family income. I may not know our exact annual income in real time, but I wouldn’t be off by 6 figures.
Post #105, I’m guessing $200k is base salary and the other $125k is bonus. So that makes it even less reliable income.
Please dont let Miamis fees dissuade you from applying. There are some schools at Miami that have more fees than others, but if you get a sizable scholarship, it is still in your budget, and its a great school!
I agree with trying for Miami Ohio 
scholarships.
“Post #105, I’m guessing $200k is base salary and the other $125k is bonus. So that makes it even less reliable income.”
If $200k is salary, then you’re living ON $200k and the $125k is a nice bonus!
There are lots of houses in older neighborhoods (built in the 1950s-1960s) which are in the 1,000 to 1,500 ft^2 range (often offered at prices substantially lower than $1,000,000 these days). More recently built houses tend to be larger, but on smaller lots.
What people are often paying for is location (close to work, “better” public schools if they have or anticipate kids, not in a high crime area, sometimes location name prestige).
$200,000 per year is still quite a high income, even in expensive cost of living places.
UCB, 2-story 2300sqft is not bigger than 1 story 1500 sqft, I think the later feels smaller. It’s not a prestige area, I considered it’s not a desirable area, I wouldn’t have purchased it.
I’m pretty sure, objectively, 2,300 sf is bigger than 1,500 sf. Someone check my math.
"Pizza, I don’t doubt there are million dollar houses in the Midwest, but here in CA it’s not a huge house, it’s a little bigger than starter home. "
So? There’s no law you can’t stay in a starter home. If you value the ability to send your kids to any college full pay, that may be precisely and exactly what you do – stay in a starter home. There’s no reason you HAVE to upgrade your house, car, etc. as you get raises throughout your career. I’m not saying everyone should or has to – but it’s certainly an option, as opposed to the automatic “I need to live fully into whatever raise I’ve just had, and live fully into my entire salary.”
True you don’t have to upgrade to any house. I fact 2br house is sufficient for anyone. One room for the parents and the other rooms for the kids until they grow older then you have to separate the male and female out. But the point is the salary sounds like one could afford a better life style, particularly on CC, the term frugality is throwing around quite a bit. I believe this couple went to undergrad for free, they did borrow loans for graduate school. One loan is for the wife’s medical school and the other for the husband’s MBA program at a private school. Not opulent life style as one would have imagine. They both borrow to buy each a decent sedan car.
@drgoogle <<< UCB, 2-story 2300sqft is not bigger than 1 story 1500 sqft, I think the later feels smaller. It’s not a prestige area, I considered it’s not a desirable area, I wouldn’t have purchased it. <<<
Can you please reread what you wrote and correct what seems to be a glaring typo?
Percentile rank is a linear distribution but income is not. A 95th percentile family has more in common, lifestyle wise, with a family 45 rank positions below it, than with a family 4.5 rank positions above it. A worker in the 95th percentile likely cannot quit his/her daytime job.
This is a 2011 income distribution graph. But the shape of the graph is still relevant.
http://www.npr.org/news/graphics/2011/05/gr-pm-income-brackets-462.gif
Post #116, I meant the 2-story 2300 sqft seems smaller than 1-story 1500 sqft.
Really?
I realize that many Calif homes put “less living space” on the first floor, and then build on top of that living space plus garage, but the 2300 sqft home shouldn’t feel smaller.
A 1500 sqft home is often limited to 3BR/2BA, while a 2300 sq ft home often has 4BR 3BA and/or a family room in addition to a living room or larger kitchen.
