So you wait til they’re out of school and in a low tax bracket?
I’ll have to look at disbursement - I thought it asked the school or me? Or are you closing the account to disburse?
I’ll come back to this in four years but my wife says we should hold for likely grad school or hopeful grand kids. I’ll have money left for sure.
Yes, not the year they graduate since May graduation means 5 months, unless they get a good enough job to provide more than half of their support. The year after is fine if they aren’t in full time education and their earnings are low.
Vanguard asks who to send the money to: the account holder or the beneficiary. That’s what they use to generate the tax forms. No need to close the account.
My understanding of the TurboTax questions is that if the amount withdrawn doesn’t exceed the amount of any scholarships (it doesn’t ask in which year) then no penalty is assessed. But you have to decide how you interpret that question.
Maybe he’d be in a higher level of physics going into that #2 school?
My daughter and nephew graduated from hs the same year and both went into engineering. Both in Calc I. Same textbook. My sister was SURE that her son’s class was much harder, especially after he got a D and my daughter got an A. It’s the same material so I don’t see how it could be harder at nephew’s school.
A big school is going to have many levels of physics.
I thought the same thing about starting levels of physics. Most engineering programs allow for AP and IB credit and will place students appropriately.
What often makes courses harder are the difficulty of tests. Some use numbers and one just has to crunch them out. Some use variables to be sure one can’t use a calculator. Some use lengthy word problems.
Not math, but in one science class I know of, a prof let kids get a B if they knew the “basics” at 100%, but to get an A they had to come up with a creative possibility they could explain to an, as of yet, unanswered question (aka ongoing research). It could be real research or purely hypothetical.
Great post — thank you!
I think the difference here is a substantial amount. IF the 260K won’t hurt your retirement and you won’t feel it then go ahead. Otherwise, I would seriously consider based on what you have said. No school friendships or right people is worth 260K.
I do believe in fit. And I think opportunity cost is often not something people consider but it’s a huge factor. That being said, nothing in your post indicates 260K more of value ( either career wise or other).
How would you know about friendships which are yet to be developed. My kid got into an honors college that isn’t a fit. We could see that on the visit. But I couldn’t say that it wouldn’t be a good experience since it’s not a road my kid will take.
Parents (my SIL) for example, often buy into the notion that their kids “deserve” to go to the school they want, even if it’s beyond family income to support it. My SIL mortgaged her house on a HELOC loan to pay for college. And it wasn’t even an amazing school.
The physics review might have just been a review of material your kid has taken but others haven’t. You can’t judge a school based on a single class. When we were looking at private schools my spouse attended a Physics class and thought it was too easy. I attended a history and thought it was great. Turned out both programs at the school were outstanding.
In any case, I think you are convincing yourself to spend the $$ for fit based on your experience of a school which didn’t fit you.
And yet, most colleges focus on outcomes and their price tag as “investment” into your child’s future. Consider that >75% students will change their major, many will go to grad school or get a second degree. Another way of putting this is would anyone other than a parent with a modicum of rationality allow a 17 year old to decide how to spend $300K with no guarantees whatsoever based on a single visit and “feels?”
And if you add in growth value of 300K over time, it’s even more insane. That 300K could easily become millions by retirement.
Actually less than 50% change majors - based on studies rather than anecdote.
Not according to any study I’ve ever read.
Please cite a recent study. We were told in a college orientation just a few years ago that 75-85% change their major.
That’s why I said “recent.” A sample of 25,000 students from 2011-2012? 
A lot has changed in a decade. There are now 19,000,000 +/- college students today and the rise CS/Engineering has changed the dynamics competely.
Longitudinal studies take time. It hasn’t changed from 30 - 80%. I’ve seen that 80% figure thrown around and it’s always anecdotal.
So, you don’t know. It’s your opinion that it hasn’t changed. 10-year old data, using a tiny sample of 25,000, is useless IMO.
25k is sufficient sample size. But continue to believe what you want instead of an actual study.
I’m assuming the 2 posters above will continue their debate via PM if it’s really necessary to prolong.
I acknowledged my history playing a part of this decision in regards to my child when I said,
And who doesn’t draw on their own experience in making their decisions? Isn’t that what people are being asked to do here on this thread? Share their stories, their perspective, so that readers can decide what resonates the most with them?
But I will take your words in the spirit of the way I assume you offered them: as a reality check on the financial part of this decision. As it stands now, we do not need to take out loans, and our retirement is probably fine but who knows what the future holds. If our assets hold their current value and never increase (even after spending money on college), a 4% withdrawal rate still results in excess of what we spend annually and that’s not counting on any social security. If that were not the case, then yes, the finances would be a bigger discussion, so it’s fair to make that clear.
Money is not the end all be all. Certainly having enough to feel safe and dignified is important. As long as the basics are covered, our goal isn’t to die with the most money in the bank. As sole heir, my kid can benefit from the money now or inherit it later, and if it gives them a better experience now and leaves them less money in the future then so be it. Who knows if that better experience sets them up for a brighter future than the 2nd choice school; at least a more fulfilling short term experience has its own intrinsic value. Do you question people about paying for private boarding school? A loaded pickup truck? Expensive vacations or hobbies? A fancy house? People have things they’re willing to spend extra money on, I don’t know why college choice is any different.
Then as far as the physics course, there’s other stuff my kid picked up on - it was 75:25 male to female, all one skin tone, and seemed remarkably empty for a 100 person lecture. They asked a student if the class was normally like that, and the answer was that students have stopped coming to the class. Why? Because it’s April. I guess because finals start next month, students don’t feel class is needed anymore? In any case, diversity and gender parity are important to my kid and the 2nd choice school is lacking in those. The school is trying to address those issues and for that I give it credit, but that feeling that you belong somewhere because you can see others like you is an important intangible that I think the majority of people take for granted.
All good points. I think my response was based on what you wrote. I’m certainly not one to judge who buys a fancy car, fancy vacations etc. But you didn’t mention any of those things. College choice IS a cost. And it’s one of the better ones IMO. But what you stated wasn’t about college choice alone. It was choice 1 v. choice 2. And your factors didn’t convince me of the value of choice #1 ( the more expensive option). That’s all I was saying. It’s a huge differential for fit. Have you checked ROI, starting salaries, internships etc for each of the schools? That’s what I would do.
So you are presuming you could afford it and it’s a now v. later option. That seems good. IF I put my financial hat on, I’d run the numbers with really high inflation and see if you can still afford it. I’d also run a couple of different scenarios.
I hear you re: imbalance in a STEM class. We’ve seen that on several college revisits. There were racial imbalances also. We’ve seen that at STEM events for many years so no surprise for us. But still, it’s a factor. Can be a huge factor for some kids and a non-factor for others. We’ve also seen things in some STEM programs that were non starters for our kids. So that might be one for you.
Good luck in whatever you chose.