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The two options available included investing a set amount each month. The amount was based on the child's age, assuming she would enter college at age 18, and an expected rate of return on the investment. In theory, the amount available and the amount needed would be close when enrollment time came around. The second option was buying a voucher for two or four years of future tuition at a set price 'today', again based on the child's age. We typically play it safe and opted for the latter option at a cost of around $36K. Given what has happened to the investment markets over the past few years, I think we made the right choice as I've heard of the value of college savings plans in some cases have plummetted, in some cases just as a student was nearing that age. We also have another investment plan we're adding to for her schooling, perhaps to be used for other education-related costs (books, computers, school-related travel, etc.) For grad school, I hope she can get some future employer to pay for it. (My employers have paid for two Masters' degrees so far for me and even now I'm considering a PhD if/when I get the time!)
I edited my post to share that I discovered that Colorado ended it's prepaid tuition plan in 2004. So I guess it's not a gamble you even need to consider.
Same here. We're somewhat financially inoculated after 9 years of private school tuition. College will actually be cheaper and we know how to live cheap now.
Only wild card is if daughter gets accepted to her "dream college" at NYU. That's gonna hurt compared to in-state Texas tuition at UT or A&M. Not sure if $200K (by the time it's all said and done) is a good investment in a college degree compared to about $50K for 4 years at a state university. That conversation is ongoing.
Steve
200K?? That's crazy. One of my friends chose to attend a private out of state university. He got into UW Madison and could have gotten super cheap in-state tuition. His parents made a deal that they'd pay what they would have paid if he had gone in-state and he made up the different in loans/scholarships/working. Something to think about
i am astounded that in my lifetime, paying for your child's education is now a given. parents dont even consider, relying on VE jr college low costs, or military service to carry 4 year school cost, not even on the table for discussion.
I know. That's what I get for telling my kid to dream big, no limits, be anything she wants to be. She wants to be an actress and live in NYC and attend NYU. Crazy kid.
I want her to attend UT and major in Management Information Systems (like her Dad) or Accounting. I'm not going to pop her bubble just yet. It's a fine line to walk.
200K?? That's crazy. One of my friends chose to attend a private out of state university. He got into UW Madison and could have gotten super cheap in-state tuition. His parents made a deal that they'd pay what they would have paid if he had gone in-state and he made up the different in loans/scholarships/working. Something to think about
no way would my parents have paid out of state tuition for me. your friends deal sounds fair.
I know. That's what I get for telling my kid to dream big, no limits, be anything she wants to be. She wants to be an actress and live in NYC and attend NYU. Crazy kid.
I want her to attend UT and major in Management Information Systems (like her Dad) or Accounting. I'm not going to pop her bubble just yet. It's a fine line to walk.
Steve
You never know, maybe she'll make it big in NYC and become a millionaire in five years. But yeah, if you're funding all of her education, Dad's gotta have a say somewhere. I think that's only fair.
Incidentally, what does a person in MIS do on a day-to-day basis? That's a field that's always interested me but I'm not sure what all it entails.
200K?? That's crazy. One of my friends chose to attend a private out of state university. He got into UW Madison and could have gotten super cheap in-state tuition. His parents made a deal that they'd pay what they would have paid if he had gone in-state and he made up the different in loans/scholarships/working. Something to think about
Quote:
Originally Posted by austin-steve
I know. That's what I get for telling my kid to dream big, no limits, be anything she wants to be. She wants to be an actress and live in NYC and attend NYU. Crazy kid.
Quote:
Originally Posted by rkb0305
no way would my parents have paid out of state tuition for me. your friends deal sounds fair.
Many people are unaware that private colleges have deeper pockets to provide scholarships. Many students who attend these more expensive universities don't even pay a dime. It's a shame that many parents won't even allow their children to look into private universities. My children's guidance counselors tipped us off on that. It's amazing how much money is out there for students at private universities. They won't accept students unless they will help them pay. You need to look in the colleges book (I call it the bible) and see what level of financial aid the college offers. Financial aid at private colleges isn't the same as financial aid at a state university. You could literally pay more to send your child to a state university instead of a private university. That's one of the major reasons I conisder these pre-paid state tutiion plans are a gamble.
Quote:
Originally Posted by austin-steve
I want her to attend UT and major in Management Information Systems (like her Dad) or Accounting. I'm not going to pop her bubble just yet. It's a fine line to walk.
Don't pop her bubble at all. Let her major in what she wants. My father almost made the mistake of dictating what my sister majored in. He wanted her to study a business major. She wanted to study journalism. He refused to pay for her college because she wouldn't major in what he wanted. He told her she would be a starving artist. Guess what? She ended up being the editor of a NYC magazine within just five years of graduating from college. Then she went on to be an award winning writer. My father changed his tune. He later said, "You can be successful in anything if you have the drive and passion." And honestly, just think of how many people DON'T try to go into acting because someone discouraged them. Sure, it's hard. But someone has to make it big. It might as well be somebody's daughter. Yours even. And there are other things she can do with an acting major. Corporations will snatch people like that up for sales positions, etc.
Many people are unaware that private colleges have deeper pockets to provide scholarships. Many students who attend these more expensive universities don't even pay a dime. It's a shame that many parents won't even allow their children to look into private universities. My children's guidance counselors tipped us off on that. It's amazing how much money is out there for students at private universities. They won't accept students unless they will help them pay. You need to look in the colleges book (I call it the bible) and see what level of financial aid the college offers. Financial aid at private colleges isn't the same as financial aid at a state university. You could literally pay more to send your child to a state university instead of a private university. That's one of the major reasons I conisder these pre-paid state tutiion plans are a gamble.
I agree, that's certainly the case in many instances. It is a gamble for private universities too, though, because a person can never be sure how much aid they'll actually receive. It's easy to look online and see how much their tuition and housing is, but it isn't until a person goes through the process of applying (usually paying a hefy application fee) and being accepted until they'll discover how much aid they were actually awarded. At least with state, a person knows that the absolute most they'll have to pay is what's listed on the website.
Maybe this was just my experience, but I didn't recieve financial aid information from the colleges that I applied to until a few days before the enrollment deadlines. That was a huge pain in the ass - waiting on information like that and not having much time to plan. It can definitely be worth it for the aid that a person can receive, but it's almost a waste if a person spends time and money visiting colleges only to find out in the end that they can't afford it, despite the financial aid offers that may have been extended.
Definitely a good point to bring up though. I kind of regret not looking into further opportunities with private colleges back when I got out of high school.
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200K?? That's crazy. One of my friends chose to attend a private out of state university. He got into UW Madison and could have gotten super cheap in-state tuition. His parents made a deal that they'd pay what they would have paid if he had gone in-state and he made up the different in loans/scholarships/working. Something to think about 
You never know, maybe she'll make it big in NYC and become a millionaire in five years. But yeah, if you're funding all of her education, Dad's gotta have a say somewhere. I think that's only fair.
And there are other things she can do with an acting major. Corporations will snatch people like that up for sales positions, etc.
