<p>Can anyone give their perspective on what is a reasonable portion of your income to spend on college? We gross $160,000. We have paid off our house and cars. We have 2 kids ... A senior in HS and a freshman in HS. Our senior was accepted at several price ranges and we don't know what is a reasonable investment in college. State flagship for $14,00 ..... LAC for $25,000...... W&M for $45,000..... And Cornell for $57,000..... We have saved $70,000 for each child, but could devote more from each paycheck to college. Our daughter is not even sure which type of experience she would like the most (sees advantages to all the schools) but I think W&M might be her best fit and most desired. Can we afford that???</p>
<p>Wow that is a tough, tough question. We had a plan when we got married for retirement, homes, kids, colleges etc. but when S1 was getting ready for the college search we sat down and revisited where we were financially knowing that we were starting a ten year journey of college tuition for 3 kids. We had planned and managed to pay our home off so we were “on plan” for the most part. For us, the idea was to put a stake in the ground regarding how much we needed/wanted for retirement and then backed out from there. If you have a financial planner, schedule a meeting and review where you are. If you’ve never met with a financial planner now is a good time. It might help to have someone look at your situation and give you a thumbs up or thumbs down, although ultimately it is your decision. </p>
<p>For us it was not about return on investment since I know that starting salary brackets are not that wide and that future income potential for the vast majority is based on the kid not the college so we set a target amount we were willing to pay and made sure the kides knew what that number was but we did not limit their choices for college applications. Some of it was using our gut instincts…there was a cost point where our guts just said that is simply too much money for a college education. I had a private school education and H a public school education so for us it wasn’t all about “private is better”…we knew better than that. </p>
<p>But we’re the kind of people that say just because someone tells us we can afford it doesn’t mean we’re going to spend it and our income is much less than yours. And good thing because I had over a year’s unemployment in the middle of S1’s college years so we drew down on savings to make ends meet…something we had NOT built into our financial plan. Things happen in life.</p>
<p>The most interesting thing that occured in our jorney so far was S2 looking at the finaid offer from one private college a year ago. He turned to me and said “that is too much money” and this was a college he liked. I was cringing inside looking at the letter because it was clearly the “most expensive” of his choices and was so relieved that his vaue system was firmly in place so don’t under estimate your kids attitudes. </p>
<p>Good luck…your question is one that everyone grapples with. How much will we pay.</p>
<p>Only YOU can answer the question about how much money you want to spend on college. That is a personal family choice. There are folks here who have made the decision to be full pays at expensive colleges, and there are folks who have placed a dollar limit on how much they can or will contribute to their student’s college costs.</p>
<p>With your income and savings for college, you will likely not receive much in need based aid at all…from any school.</p>
<p>Is your daughter a current HS senior with these acceptances in hand? If so, remember, college is for FOUR years (sometimes more) and you will need to feel comfortable funding the higher cost schools for ALL four years.</p>
<p>If your daughter is a junior who is looking at schools, make a list of the characteristics that make William and Mary appealing to her…and look for other schools that might fulfill those characteristics that are within your price range.</p>
<p>But I think first…you need to establish your price range.</p>
<p>We had income that was lower than yours and were almost full pays for two kids at private schools…all out of current income. I can tell you…I do NOT miss writing a check of almost $3000 EVERY MONTH to some college and then rent/food for off campus housing to someone else in addition. But we were able to do so…and did. Some folks would absolutely say NO to the same expenditure. Only YOU can make this choice for your family.</p>
<p>Thumper is right. There is no way anyone else can come up with what you should pay. There are those who feel it is their duty to beggar themselves to pay for whatever their kids want and get. At the other extreme are those parents who don’t feel that they should pay at all. You are in the enviable position (and Congratulations for putting yourself there) to be able to ultimate flexibility. A lot can depend on the child too.</p>
<p>Well, W+M will cost you $27500/year after draining the college account. Can you afford this or will you need loans?</p>
<p>LAC only costs $7500/year after using the college fund, your D could get Staffords for most of it.</p>
<p>State U will leave $14000 in the college fund, enough to get her a car or help fund grad school. Offer her the balance of her college fund when she graduates, maybe that will sway her.</p>
<p>No one else can say what you can afford, you have to look at your own budget, your retirement situation, etc. Not having house/car payments should help a lot.</p>
<p>I do think a good life lesson for your child is to say “I can afford to help you with X per year.”</p>
<p>You will be giving her a gift more valuable than the actual money <em>hugs</em></p>
<p>Thanks, you all, for responding with your perspectives. We have never done anything extravagant with our money, so for us to be even considering an expensive school is very unlike us. The thought of being able to pay for the state school with money to spare is very appealing and more like us. I think we could ‘afford’ W&M, with no loans, but don’t feel sure that would be a smart thing to do with that much money. A financial planner is an excellent idea … if we can find one quickly enough! Again, I so appreciate hearing your input. This is so hard…</p>