My College Fund is Gone (Parents invested everything in the stock market)

Paying for College
61

<p>We are returning to the 70's when kids worked three jobs, took loans and lived a SIMPLE LIFESTYLE. How do I know? Because that is what I did.</p>

<p>I live near a prestigious private university that claims that over 65% of its students are on financial aid. Oddly, when I do a drive by the huge undergraduate parking lots, I see a LOT of BMW's and Mercedes C230's and Lexus IS 250's in there. I dont see any beaters. I see kids in very expensive clothes that they call "slumming". They are spoiled rotten compared to when I was coming along. Yes, I know that a lot of kids arent that spoiled and many kids were struggling to get by even before this crisis. </p>

<p>But a change in lifestyles is coming, people.</p>

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<p>I live near a prestigious private university that claims that over 65% of its students are on financial aid. Oddly, when I do a drive by the huge undergraduate parking lots, I see a LOT of BMW's and Mercedes C230's and Lexus IS 250's in there. I dont see any beaters. I see kids in very expensive clothes that they call "slumming". They are spoiled rotten compared to when I was coming along. Yes, I know that a lot of kids arent that spoiled and many kids were struggling to get by even before this crisis. </p>

<p>But a change in lifestyles is coming, people. <<<<</p>

<p>YES!!! Rarely do I ever see a student driving an "old car" -- the same goes on high school campuses. And how many Coach purses do I see the girls carrying???? At our local middle-school, the girls either carry Coach purses or "Juicy" purses.</p>

<p>When I was in college I drove a little ol' blue Datsun, carried a purse that I had sewn together, and worked 20+ hours a week at a part-time job.</p>

63

<p>"but a change in lifestyles is coming, people" To that I say THANK GOD! We are not helping our kids by cosigning expensive loans, encouraging overpriced universities and tons of debt. Why do you think we are in this mess to start with? People who overborrowed money for homes they couldn't afford and shouldn't have bought. Borrowing 30-50k a year for college is just as wreckless. Tapping your 401k plan or home equity to pay for a college you can't afford is just as bad. Our kids will be supporting us later AND paying off school loans at the same time. I've been honest with my kdis about how much this economy is hurting my savings, retirement and how I will now look at the future. It's been the best thing for them. DS #2 hands over his paycheck every week to put in the bank for college. He decided not to fix the dent in the car when someone hit him and put the insurance money in the bank instead. DD has become a tightward with her own money since I told her she's in charge of books, living expenses, and part of tuition. There's too many unknowns coming.....</p>

64

<p>
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I don't understand. If all the money is gone, then wouldn't you qualify for substantial financial aid?

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<p>I think that income play a very very important and weighty factor in FA rules, (maybe more than assets?). FA mavens, am I correct?</p>

<p>FA calcs (based on tables from the early '90s I believe I read) make assumptions on how much one SHOULD be putting aside given a certain income. For whatever reason, if you were not putting that aside (or in this case, put it aside, then lost it), it might not significantly affect the final EFC.</p>

<p>bigger questions to the fa mavens - if it is true that the rules are based on tables from the early '90s - why aren't they updated to be for 2008? why are n't they updated every year? w/ computers, all things are possible :)</p>

65

<p>One of the posters mentioned "declare yourself independent of parents."</p>

<p>Easier said than done. You have to be 23 or meet a set of stringent rules as defined by federal government.</p>

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<p>What I'm doing is transferring to community college. My dad lost $100,000 (part of it was from his retirement fund) from the stock market. I'm only staying at UCI for a quarter as a freshman, so my parents have enough time to accumulate enough money for the school I will transfer to.</p>

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<p>Iildimsum7...</p>

<p>best of luck to you... There are many fine cc's in Calif so you'll do fine there for 2 years, and then you can transfer to where you want to go...
(Many students do the cc option in CA because it is such a more affordable option.... Then once you transfer to your "dream school," you will still get to say you graduated from XXXXX! And, you'll get all the recruiting benefits.</p>

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<p>I transferred and saved a bunch of money. I graduated from the school I wanted to, but half as much debt. It is a good option. Just make sure you follow the matriculation agreements with the school you want to go to follow the exact requirements. You don't want to miss out and take the wrong classes. </p>

<p>Make sure you talk with counselors at the CC and at the school you will transfer to. Get things in writing. Print out those agreements.</p>

69

<p>As others have said...contact the fin. aid office, get a job, take out some loans, start spending/saving "smart"-you can make it through this.</p>

70

<p>try to apply to a need-blind college because they would be the kind of institution most likely to admit you regardless of your financial situation and offer you financial aid.</p>

71

<p>Perhaps this thread should go into "CC's Must Read's" if there is such a thing. It is a valuable lesson . . . one we could have used. </p>

<p>We try to keep abreast of what we should do financially, knew very well that we would need to roll retirement funds into more conservative funds as we approach retirement, but never transferred this knowledge to our son's education funds, until it finally dawned on me at the beginnng of summer. We consulted a financial planner that we use on occassion, he advised to leave the $ where it was. Between income, my son's savings and my sons 529 plan we had enough to pay the first year. My son wanted us to take the $ out of the market, should have listened to him!!!</p>

<p>There are many of us parents out here who are not financially savy doing the best we can to save for our children's education, reading to figure out what we should do, consult financial planners, but we still make mistakes.</p>

<p>Tears come to my eyes as I write this, we will figure out some way to continue to fund my oldest son's education, with his help of course, every penny he has ever earned in the jobs he has worked since his paper route to his two jobs the last several summers has been put towards this years college costs. We will also help my youngest son when his turn comes in two years.</p>

72

<p>As a parent who is in a similar situation to your parents, please do not feel betrayed. My husband and I have made so many sacrifices to save and invest over the lifetime of both of my daughters. My daughters have also understood the importance of us sacrificing as a family... they don't have their own cars (not even an old beat-up one!), or many other extravagances. Last October we had enough saved to send them both to the college of their choice. </p>

<p>Our college fund was invested fully in equities... all blue chip companies (we thought they were somewhat secure...). We were so busy working and taking care of the family on a day-to-day basis that we neglected our investments. Now we are looking at a more than 50% loss and we are sitting tight hoping it will come back. But it may not come back in-time to cover tuition costs so we are looking are cutting back even further so that we can pay some of the tuition from salary. We've actually considered selling our house and many other less drastic options. My daughter is a non-scholarship athlete in a sport that trains year-round so working is tough but she may need to give up her sport to pitch-in and work. Since we will not qualify for FA, we have to handle this on our own but I have confidence we will get both daughters through... </p>

<p>I cry every day over this... but I know there are options and given the current financial crisis, there are so many who have been impacted at worse levels than us. </p>

<p>Obviously, your education is important to your parents or they would not have had a college fund for you so be thankful and work with them. I am sure they want to get you through college as much as you want it.</p>

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<p>The silver lining in this financial crisis is a change in lifestyle and priorities!</p>

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<p>Ok. I agree with many of the former posters but it seems like you are a very reluctant to work kind of person. Not everything in life comes that easy. People DO have to work to get into college and to stay there, I do hope you understand that. What your parents did wasnt bad but its was not great either... they were just trying to help out!!! I wouldn't blame them for trying to pay for a better future for you. But now that the money is gone, they'll just have to wait until it comes back. Also, you should take responsibility too and try to pay for your own college tuition.. dont expect your parents to give you everything. I am applying for private school in the US but I know my parents wont pay for more than half the tuition. I really hope one day I can pay them back for this wonderful opportunity.
Do not panic, do not become angry. Talk to your parents about your options and inform the school about this problem. Most schools are understanding and will consider you as a financial aid student! I hope you come out of this as a better person. When you look back at this you should see it as an opportunity to grow as a person and to learn to work harder!</p>