How much will VA IN-STATE universities cost in 15 years? (Washington: mortgage, loans)

[hilsmom]

yup, my parents paid about $80K all in for my private top 50 college (it is always right on the edge of the top 25, but other schools have larger endowments, I think). Mid--late 90s. That same school now? Over $200K!!!

No, just no.

[LuvVA]

This is so scary.

I am not very familiar with college system here in U.S.

Few years back, I got the VA pre-paid college savings plan for my kid.

My kid will go to college in 9 years. I was hoping this prepaid savings plan will help us a lot.
I know this plan doesn't cover all the fees.

What are the other fees I need to plan and start saving that's not covered by the prepaid plan?

[Carlingtonian]

Originally Posted by LuvVA

This is so scary.

I am not very familiar with college system here in U.S.

Few years back, I got the VA pre-paid college savings plan for my kid.

My kid will go to college in 9 years. I was hoping this prepaid savings plan will help us a lot.
I know this plan doesn't cover all the fees.

What are the other fees I need to plan and start saving that's not covered by the prepaid plan?

They all have their own fees, and there are many of them. Your best bet is to start planning for scholarships your kid might qualify for. Also, don't forget that if your kid instead serves in the military for 2 years (realistically 4, since I don't think the military will allow a 2-year hitch unless they kick you out), the GI Bill will pay for their college.

Or (if your kid is a very high achiever), the military academies are free of charge and offer a guaranteed (but possibly dangerous) job after graduation.

Or, if your kid is male, exceptionally smart, and not afraid of manual labor, he could go to Deep Springs College.

[midlifeman]

The reason why the costs are so high is because the government offers guaranteed student loans. Which means everyone can now go to school because the government can give you a loan. Since there is very little chance of default, the universities can raise the prices. Falling government subsidies are really an excuse the universities use why tuition goes up, but in reality it counts for 5% or less of their budget. If universities were run like a business this would be no big deal.

When you hand out free money or guaranteed money, spending gets out of control. Reminds me of the housing crisis 2003-2008 and the current health care system. Round and Round we go where it stops nobody knows!

[tgbwc]

I looked at GMU's in-state tuition rate and it's not much less than my PA alma mater's out of state rate (if I'm reading the charts correctly).

[lovnova]

Originally Posted by LuvVA

This is so scary.

I am not very familiar with college system here in U.S.

Few years back, I got the VA pre-paid college savings plan for my kid.

My kid will go to college in 9 years. I was hoping this prepaid savings plan will help us a lot.
I know this plan doesn't cover all the fees.

What are the other fees I need to plan and start saving that's not covered by the prepaid plan?

VA Pre-paid basically pays just tuition. Its about half the cost unless your kid is commuting. You will have to pay room and board out of pocket.
We paid a lump sum for our last. The cost for VA pre-paid (tuition) was $16,000 14 years ago for a 4 year plan. She will start college in 3 years. I think that was a pretty good deal.

[Thinking-man]

Originally Posted by lovnova

VA Pre-paid basically pays just tuition. Its about half the cost unless your kid is commuting. You will have to pay room and board out of pocket.
We paid a lump sum for our last. The cost for VA pre-paid (tuition) was $16,000 14 years ago for a 4 year plan. She will start college in 3 years. I think that was a pretty good deal.

How much would that 16k be if you had invested it in the s&p500 14 years ago?

[lovnova]

Originally Posted by Thinking-man

How much would that 16k be if you had invested it in the s&p500 14 years ago?

No idea. But a $16,000 s&p 500 investment 14 years ago would have to more than double in value to equal the deal I got. Plus my deal is guaranteed. No guarantees with a s$p 500 investment.

[midlifeman]

$16,000! Man am I jealous. I knew these were a bargain when they first came out. Last time a check a prepaid 4 year is about $62,000 + depending on the age of your kid.

[Thinking-man]

thanks for all the comments everyone!