<p>I’ve read most of the posts in this strand and it seems there are many of you who are “pros”, having btdt. I would love to pick your brains as to how we should approach this year and next year, having come late into the game but still wanting to be as prepared as we can be. Clearly, the best way to pay without debt would be to have the income and savings for college but we don’t. Here are some stats and thoughts and I’d love to hear advice on strategies. I’ve read a few books on paying for college but need to reread them and my notes.</p>
<p>Income 2010: Dad-78K Mom- $300 HS Junior- $1500</p>
<p>Have not looked at FAFSA. Collegeboard website EFC comes in around 10K but if income goes over 80K for 2011, that will increase.</p>
<p>Parents savings: 0 (We don’t expect this ever to change much as there are medical needs and a 53 year old house in need of much repair like new roof, etc)</p>
<p>Dad’s 401K: 46K</p>
<p>Home equity: 70K<br>
J
unior’s savings: $2,600</p>
<p>Junior’s 529 (grandparents set it up): 5K </p>
<p>2 more younger kids at home. </p>
<p>529 account will probably be used in senior year for more CC classes and maybe one or two university classes, so it will probably finish around 3K.</p>
<p>Junior, homeschooled/some college courses, has potential to make good money, 3K+, this year and either save it or buy a used car. Junior uses income for most discretionary costs (car insurance, phone, clothes, netbook, sports fees, musical instruments, etc)</p>
<p>Juniors stats: PSAT 225 so will be NMF most likely; 4.0 GPA 2320 SAT; some national awards and UMR status. Overall, possibility of going to highly selective college decent.</p>
<p>Right now on the list are 4 safeties that give full rides for NMF (and one school that offers combo full rides for another talent, chess), local UC, and some reaches such as Princeton that say they’ve eliminated loans.</p>
<p>Local state univ. isn’t an option as junior is now auditing upper division courses in intended major so coursework wouldn’t work.</p>
<p>Junior is interested in looking for scholarships this summer and might do science research and go for one of the “biggie” science scholarships (a real longshot!). Has applied for a 6K scholarship through father’s work and has a small (under 1K) bowling scholarship waiting.</p>
<p>Given these stats, what would be the best way to think about paying for college?</p>
<p>1) How should junior use his income? Should he spend his savings? Should he try to work as much as possible and save it all, fully knowing he’ll be expected to use it to pay for college?
2) Should we use up as much of 529 now or should we hang onto as much of it as we can?
3) Should junior try to find as many smaller scholarships as he can?
4)If junior somehow made it into a highly selective college and also got some merit scholarships, how would that effect what family is expected to pay? Say, COA is 50K and college says family should be able to come up with 9K and junior get the 6K scholarship, is family still on the hook for 9K? If so, how does family come up with that since there are no savings? Is it inevitable that family would have to take personal loans? Would this be a time to borrow from other relatives?</p>
<p>I know I have many more questions but I’m trying to wrap my head around it all. Thanks!</p>