XP: saving for college

norunawaybride

How many of you have started a college fund for your kids?  How much are you putting away?

NDwife07

Yes, we are. We're putting away as much as we can afford after funding our retirement accounts.

margeincharge2

*sigh* Nothing yet.

We need to pay off our student loans and also find a way to sufficiently put away for retirement. I figure DS will be better off with parents that don't need financial support later in life. Once I get back to working full time, I think we will start doing something but as of now, nothing yet.

FirefightersBride

My dad actually started an account for DS. We also have contributed to it (his baptism $$) and after we pay off all of our debt (we are following Dave Ramsey's plan) we will start paying into the fund on a regular basis.

flutiefrostie

Nope. I think it's good for kids to pay their own way. Personally, I found I was more likely to attend class once I figured out how much I was paying for each lecture. 

starlingrose

We started when he was 3months old. We put away $75/mo and the rate is fluctuating. Right now its really high so we have quite a bit in there already.

Mrs.S-S

We have. We are putting in as much as we can afford each year - at a minimum at least the amount to take the full tax break on it (which I know is not the point, but a nice advantage nonetheless). We actually got a statement yesterday and she earned money in it! Better than our retirement accounts - lol.

NDwife07

flutiefrostie:

Nope. I think it's good for kids to pay their own way. Personally, I found I was more likely to attend class once I figured out how much I was paying for each lecture. 

I'm not agreeing or disagreeing with you (promise), but you may not be aware that parental income and assets are - as it currently stands - figured into a student's eligibility for financial aid. Meaning, in an extreme example, if Donald Trump didn't want to help pay for his kids' education, it wouldn't matter - they still wouldn't qualify for anything need-based.

I work in university financial aid and admissions so I've worked with a lot of families in your situation. Just make sure your kids are aware well in advance that you don't plan to help! You'd be shocked at how many parents don't tell their kids this until right before the bill is due.

smilelari

We haven't started one yet, but will.  I was grateful to not start my adult life in debt and would like to help LO do the same

mrs.k 07

DH's parents started one with $5,000 plus they contribute a certain amount each month until he's 18. We are very blessed! Also we plan to put all the money he receives as gifts into an investment for him.

StrawberryBlondeMomma

We will start one after DH graduates from law school. As of now, we have no income and need all of the money in our savings. I'm guessing our parents will contribute too.

norunawaybride

NDwife07:

flutiefrostie:

Nope. I think it's good for kids to pay their own way. Personally, I found I was more likely to attend class once I figured out how much I was paying for each lecture. 

I'm not agreeing or disagreeing with you (promise), but you may not be aware that parental income and assets are - as it currently stands - figured into a student's eligibility for financial aid. Meaning, in an extreme example, if Donald Trump didn't want to help pay for his kids' education, it wouldn't matter - they still wouldn't qualify for anything need-based.

I work in university financial aid and admissions so I've worked with a lot of families in your situation. Just make sure your kids are aware well in advance that you don't plan to help! You'd be shocked at how many parents don't tell their kids this until right before the bill is due.

Wow, great piece of information!  Thanks!!  DH is ambivalent about starting a college fund because he thinks DS can just get a loan.  Now, I have some ammunition.

stellasmommy

we have one for DD. we split monetary gifts we get for her between her college acct and a savings acct we have for her (we use it to save for big items she needs, whatever is leftover when she's 18 will be hers). i work for a finacial company so i opened it up through work. $100 from each paycheck goes directly into her college acct.

Shellbelle22

We have money for her in an UTMA account. We are not one of those "college isn't optional" families so a 529 or similar plan isn't for us. DD can get access to that money when she turns 18. Whether she uses it for college, travel, a wedding, or a down payment on a home, etc is up to her. It's money she was given as a gifts.

NDwife07

norunawaybride:

NDwife07:

flutiefrostie:

Nope. I think it's good for kids to pay their own way. Personally, I found I was more likely to attend class once I figured out how much I was paying for each lecture. 

I'm not agreeing or disagreeing with you (promise), but you may not be aware that parental income and assets are - as it currently stands - figured into a student's eligibility for financial aid. Meaning, in an extreme example, if Donald Trump didn't want to help pay for his kids' education, it wouldn't matter - they still wouldn't qualify for anything need-based.

I work in university financial aid and admissions so I've worked with a lot of families in your situation. Just make sure your kids are aware well in advance that you don't plan to help! You'd be shocked at how many parents don't tell their kids this until right before the bill is due.

Wow, great piece of information!  Thanks!!  DH is ambivalent about starting a college fund because he thinks DS can just get a loan.  Now, I have some ammunition.

Please please please learn about the college financial aid process before deciding to do or not to do something! Every single day I talk to families who tell me they wish they would have known sooner how the whole thing works.

And yes, laws and "rules" are subject to change in the next 18 years but there is SO much mis-information out there!

NDwife07

StrawberryBlondeMomma:

We will start one after DH graduates from law school. As of now, we have no income and need all of the money in our savings. I'm guessing our parents will contribute too.

LOL, for some reason when I read that I read "DH" as "DS". I thought you were being snarky

StrawberryBlondeMomma

NDwife07:

StrawberryBlondeMomma:

We will start one after DH graduates from law school. As of now, we have no income and need all of the money in our savings. I'm guessing our parents will contribute too.

LOL, for some reason when I read that I read "DH" as "DS". I thought you were being snarky

haha, no, no. DH is hoping he gets a scholarship though, but we plan on paying for our kids' educations if we can.

norunawaybride

NDwife07:

norunawaybride:

NDwife07:

flutiefrostie:

Nope. I think it's good for kids to pay their own way. Personally, I found I was more likely to attend class once I figured out how much I was paying for each lecture. 

I'm not agreeing or disagreeing with you (promise), but you may not be aware that parental income and assets are - as it currently stands - figured into a student's eligibility for financial aid. Meaning, in an extreme example, if Donald Trump didn't want to help pay for his kids' education, it wouldn't matter - they still wouldn't qualify for anything need-based.

I work in university financial aid and admissions so I've worked with a lot of families in your situation. Just make sure your kids are aware well in advance that you don't plan to help! You'd be shocked at how many parents don't tell their kids this until right before the bill is due.

Wow, great piece of information!  Thanks!!  DH is ambivalent about starting a college fund because he thinks DS can just get a loan.  Now, I have some ammunition.

Please please please learn about the college financial aid process before deciding to do or not to do something! Every single day I talk to families who tell me they wish they would have known sooner how the whole thing works.

And yes, laws and "rules" are subject to change in the next 18 years but there is SO much mis-information out there!

Does the need based qualification apply towards private school loans as well?

NDwife07

norunawaybride:

NDwife07:

norunawaybride:

NDwife07:

flutiefrostie:

Nope. I think it's good for kids to pay their own way. Personally, I found I was more likely to attend class once I figured out how much I was paying for each lecture. 

I'm not agreeing or disagreeing with you (promise), but you may not be aware that parental income and assets are - as it currently stands - figured into a student's eligibility for financial aid. Meaning, in an extreme example, if Donald Trump didn't want to help pay for his kids' education, it wouldn't matter - they still wouldn't qualify for anything need-based.

I work in university financial aid and admissions so I've worked with a lot of families in your situation. Just make sure your kids are aware well in advance that you don't plan to help! You'd be shocked at how many parents don't tell their kids this until right before the bill is due.

Wow, great piece of information!  Thanks!!  DH is ambivalent about starting a college fund because he thinks DS can just get a loan.  Now, I have some ammunition.

Please please please learn about the college financial aid process before deciding to do or not to do something! Every single day I talk to families who tell me they wish they would have known sooner how the whole thing works.

And yes, laws and "rules" are subject to change in the next 18 years but there is SO much mis-information out there!

Does the need based qualification apply towards private school loans as well?

Some private schools handle things differently if they opt out of receiving federal funding at all (it's complicated), but when you file the Free Application for Federal Student Aid (FAFSA) you're considered for need-based aid - grants and loans - as well as non-need-based loans at all the schools you're considering.

You don't have to qualify for need-based aid to get a loan, but there are better loans available if you do qualify.

That's an oversimplified explanation, of course.

karelaorange

norunawaybride:

NDwife07:

norunawaybride:

NDwife07:

flutiefrostie:

Nope. I think it's good for kids to pay their own way. Personally, I found I was more likely to attend class once I figured out how much I was paying for each lecture. 

I'm not agreeing or disagreeing with you (promise), but you may not be aware that parental income and assets are - as it currently stands - figured into a student's eligibility for financial aid. Meaning, in an extreme example, if Donald Trump didn't want to help pay for his kids' education, it wouldn't matter - they still wouldn't qualify for anything need-based.

I work in university financial aid and admissions so I've worked with a lot of families in your situation. Just make sure your kids are aware well in advance that you don't plan to help! You'd be shocked at how many parents don't tell their kids this until right before the bill is due.

Wow, great piece of information!  Thanks!!  DH is ambivalent about starting a college fund because he thinks DS can just get a loan.  Now, I have some ammunition.

Please please please learn about the college financial aid process before deciding to do or not to do something! Every single day I talk to families who tell me they wish they would have known sooner how the whole thing works.

And yes, laws and "rules" are subject to change in the next 18 years but there is SO much mis-information out there!

Does the need based qualification apply towards private school loans as well?

Yes.  It's just that private schools give more scholarships in general (but cost more, too.)

jesstibb

margeincharge2:

*sigh* Nothing yet.

We need to pay off our student loans and also find a way to sufficiently put away for retirement. I figure DS will be better off with parents that don't need financial support later in life. Once I get back to working full time, I think we will start doing something but as of now, nothing yet.

Don't feel bad. I think you are doing what is right in your situation. I'm pretty sure that I've heard financial people say before to not scrimp on your own retirement to give your kids a college fund. They will have options when it comes time to figure out college. You won't have any other options when it comes to retirement. 

flutiefrostie

NDwife07:

flutiefrostie:

Nope. I think it's good for kids to pay their own way. Personally, I found I was more likely to attend class once I figured out how much I was paying for each lecture. 

I'm not agreeing or disagreeing with you (promise), but you may not be aware that parental income and assets are - as it currently stands - figured into a student's eligibility for financial aid. Meaning, in an extreme example, if Donald Trump didn't want to help pay for his kids' education, it wouldn't matter - they still wouldn't qualify for anything need-based.

I work in university financial aid and admissions so I've worked with a lot of families in your situation. Just make sure your kids are aware well in advance that you don't plan to help! You'd be shocked at how many parents don't tell their kids this until right before the bill is due.

 

Believe it or not, I applied for financial aid in college so, yes, I know how it works. 

NDwife07

flutiefrostie:

NDwife07:

flutiefrostie:

Nope. I think it's good for kids to pay their own way. Personally, I found I was more likely to attend class once I figured out how much I was paying for each lecture. 

I'm not agreeing or disagreeing with you (promise), but you may not be aware that parental income and assets are - as it currently stands - figured into a student's eligibility for financial aid. Meaning, in an extreme example, if Donald Trump didn't want to help pay for his kids' education, it wouldn't matter - they still wouldn't qualify for anything need-based.

I work in university financial aid and admissions so I've worked with a lot of families in your situation. Just make sure your kids are aware well in advance that you don't plan to help! You'd be shocked at how many parents don't tell their kids this until right before the bill is due.

 

Believe it or not, I applied for financial aid in college so, yes, I know how it works. 

Fair enough - just wanted to throw it out there in case you weren't aware (in my experience, many families aren't!).