Starting way too late I know (student loan, credit, buying, tax)

[mikealialex]

My Daughter is 8, soon to be 9. We have put all of our focus on buying our house, which we did last year. I know I'm late, but I need to start saving for her College. Should I open a North Carolina 529 plan to save with the tax deduction? Or open a Money Market acct and hope for the best? Are there other options that would suit me better? I really dont have much spare $$$ at the end of the Month, but I know I need to do something. My guess is that she would qualify for a scholarship, and that she would want to stay close to home. Of course, a lot can change...
Thanks!

[Stac2007]

I hope to God they are able to find work after college. Many young people coming out of college are defaulting on their student loans because their crummy job at Starbucks pays them little.

[HappyTexan]

Talk to other parents at your child's school and see what they are doing and what your state offers.
Each state is different. And I do not think you are too late..you have 10 years.

Texas had the Guaranteed Tuition plan which I got into when my son was in 5th grade. His tuition/fees for a 4 year college (texas college) is paid for. This plan has since closed once tuition hikes became outrageous here in Texas but a new plan opened up which is more expensive than the one I am in due to the high cost of tuition yet a guarantee of today's prices can't hurt 10-15 years down the road.

Maybe your state has something like that. In my plan the state does the investing..I just send them a check.

[wheelsup]

Best advice for college if I were able to do it again.

Unless you can get into an ivy league school (say Harvard) where you can pretty much write your own ticket upon graduation with a business degree, go to a community college for 2 years. Get the basic credits and then transfer (check what will be accepted) to a state school like NC State/UNC, wherever you can get a deep discount for in state tuition. If she's smart have her do what AP classes she can, I saved around $10k by doing those in high school.

Oh and get her a reliable car as a present upon college graduation. One that she can use for all those low paying entry level jobs that are out there. My parents did that and it saved my butt!!!

[HSVbulldawg]

Will your child have to go to school in NC if you use that plan?

[HappyTexan]

Originally Posted by HSVbulldawg

Will your child have to go to school in NC if you use that plan?

What I liked about the Texas plan is:
1. If my son decided not to go to college I get all my money back
2. If my son decided to go to a private Texas college they still pay tuition but only that amount guaranteed by the public college tuition I locked in at. I would have to pay the difference.
3. If my son decided to go to an out of state college I can get all my money back and then foot the bill myself.

As it is my son graduates this year and he will be going 2 years to Community College and then 2 years to a Texas university. Now, since I paid for a 4 year University plan he can either take a few more classes or I may be actually able to get a refund.

To me it was a win-win as I would not lose any money I put in way back when he was in 5th grade.

But..this is the Texas plan and every state has their own so you need to check what your state offers.

[HappyTexan]

Here's a link. On that page are further links to various state tuition plans.
A guaranteed (or prepaid) tuition plan IMHO is a better deal than just a college savings plan. I think you'd want to lock in at today's tuition rates rather than hope the stock market goes up enough for you to cover increasing tuition costs.

Electronic Campus - Financial Assistance - Prepaid Tuition (529) Plans

[mikealialex]

Thanks for all the replies so far. I look fwd to a few more opinions.

[bls5555]

Originally Posted by wheelsup

Best advice for college if I were able to do it again.

Unless you can get into an ivy league school (say Harvard) where you can pretty much write your own ticket upon graduation with a business degree, go to a community college for 2 years. Get the basic credits and then transfer (check what will be accepted) to a state school like NC State/UNC, wherever you can get a deep discount for in state tuition. If she's smart have her do what AP classes she can, I saved around $10k by doing those in high school.

100% agree.

[Morphous01]

Originally Posted by Stac2007

I hope to God they are able to find work after college. Many young people coming out of college are defaulting on their student loans because their crummy job at Starbucks pays them little.

Exactly, and from what I can see, unless you work in the pharmaceutical industry, the religious industry or the governmental industry you are better off starting your own business.

It's amazing how everybody teaches there kids to work for somebody else but nobody teaches there kids to work for themselves or for there own family.