Saving for kids' college?

[NickleDimer]

It is my understanding that colleges also throw more aid to fill spots or fulfill real or perceived quotas for protected classes. Male nursing students and female engineers would get deals from Nova. Native Americans (like Elizabeth Warren ) would get special consideration. Of course, I am 65 years old and it was still all guys in my day.

 

[tomdudes]

I meant income, not savings or assets. They don't expect you to tap your 401K, and they take into account your primary mortgage (from a cash flow standpoint). I had minimal assets, and could show a big real estate deficit, but the EFC was driven by my household income. I am sure that they also have ways to make sure that a lower income/higher saver doesn't get too low of an EFC either.

So if you are paying high school tuition for other younger siblings, that doesn't reduce your EFC. So if you have one younger child in high school for $20K, and another kid in grade school for another $10K somewhere, that is $30K that they fully expect you to have available for college tuition.

 

[RimJobbLarry]

Huge ripoff. Tell him to go to barber school.

 

[Fat Wanker]

I meant income, not savings or assets. They don't expect you to tap your 401K, and they take into account your primary mortgage (from a cash flow standpoint). I had minimal assets, and could show a big real estate deficit, but the EFC was driven by my household income. I am sure that they also have ways to make sure that a lower income/higher saver doesn't get too low of an EFC either.

So if you are paying high school tuition for other younger siblings, that doesn't reduce your EFC. So if you have one younger child in high school for $20K, and another kid in grade school for another $10K somewhere, that is $30K that they fully expect you to have available for college tuition.

That sucks because I will probably send them to private high school. We'll see. Maybe I'll get lucky and one will be a great student and get a scholarship to high school.

If what you are saying about mortgage balance is correct, I am approaching things wrong. As it stands, my house will be paid off right before my oldest starts college. It's not an expensive house so maybe a good move would be to buy something more expensive and get a 15 year mortgage on it in a couple years. If it is a good school district I might even save by sending them to public high school (unlikely due my xenophobia).

 

[NovaNation1188]

That's intersting, yet we believe in a progressive tax code. What is the difference? Curious to hear the amswers.

A progressive tax code slightly impedes 2%ers from getting all of the money in play. A larger percentage of the overall money is going to 2% of the population each year, but we should curb that -- at least a little -- so 98% can live above the poverty line.

What we're talking about here is straight price-fixing, by both colleges on tuition and banks on interest rates.

 

[Fat Wanker]

Edit for clarification: "Xenophobic" might be too strong of a word. I don't want my kids mixing too much socially with amoral heathens or people who's religion requires them to wear stupid hats or eat weird food.

 

[NickleDimer]

Edit for clarification: "Xenophobic" might be too strong of a word. I don't want my kids mixing too much socially with amoral heathens or people who's religion requires them to wear stupid hats or eat weird food.

Like unleavened bread?

 

[Fat Wanker]

No, that's my one exception.

 

[lowry99]

I meant income, not savings or assets. They don't expect you to tap your 401K, and they take into account your primary mortgage (from a cash flow standpoint).

I mentioned taxable accounts... if you have assets in personal brokerage accounts for instance (not IRAs or 401ks)... do they expect you to tap that?

 

[Anarchy99]

I mentioned taxable accounts... if you have assets in personal brokerage accounts for instance (not IRAs or 401ks)... do they expect you to tap that?

Absolutely 100%. Only retirement seems to be off limits. Even accounts in your other kids names are part of the process. Parents are usually custodians of their kids accounts, and it's easy to move money form one to another with a few clicks. You're asked to disclose it all.

 

[tomdudes]

As dmil said, they will expect you to tap into brokerage accounts or any other liquid assets for sure.

 

[SnottieDrippen]

Edit for clarification: "Xenophobic" might be too strong of a word. I don't want my kids mixing too much socially with amoral heathens or people who's religion requires them to wear stupid hats or eat weird food.

At this point young people from those cultures/religions basically act like white kids. Fully assimilated. Their parents are the odd ones.

 

[BigEastBasketball]

As dmil said, they will expect you to tap into brokerage accounts or any other liquid assets for sure.

How is this news? If you're claiming poverty in order to get a break on tuition, you can't have 400 grand sitting in a brokerage account somewhere. What am I missing?

 

[tomdudes]

How is this news? If you're claiming poverty in order to get a break on tuition, you can't have 400 grand sitting in a brokerage account somewhere. What am I missing?

I was just following up to lowry's question. You're not missing anything.

 

[BigEastBasketball]

Gr8

 

[nardibynature2]

Wonder how tjc paid for his fake kids college