Rookie Mom Seeks Early Advice on Financing College for Twins
Twins currently finishing sophomore year in HS; graduating in 2020
Two FT working parents with combined AGI of $200K
VA 529 combined savings of $62K Question #1: Does 529 count against you when applying for financial aid? Does it count as student's asset or parent's asset?
High Home Equity due to living in NOVA ($700-800K) - Question #2: Does home equity count against you when applying for financial aid?
I know my kids will not qualify for much if any financial aid and as they are more the B student probably little to no merit aid.
So I'm beginning to think about financing for college years with twins. We do have the VA 529 set up but have not been able to save up as much as we thought. Life happens and with elderly parents overseas we have had to take many trips due their illnesses and some last minute due to funerals. We've also wanted to give our kids opportunities we never had growing up as first generation Americans...add to that the fact that we live in expensive NOVA/FFX County. Plus they get their driver's license this year...we don't plan to buy them any cars (they have to work to buy a used car)...but insurance alone for two driving teens. Money in, money out it seems.
That being said, with $62K saved up I hope to be able to at least fully pay for each kids' first year of college -- I know community college will save money, but I want them to get the full experience of college -- living in dorms/college campus as my parents worked hard for me to have the same. They know that we plan to only pay for in-state tuition, but I am allowing them to apply to a few OOS as I've heard that sometimes they will give aid and ends up being close to in-state tuition.
I am ball park estimating that cost for full tuition/expenses will be $25K per year per kid for in-state....so $100K x2...$200K. Ouch. So, $138K needed....I'll probably be able to save another $38K in the VA 529 by the time they graduate...so where to get the other $100K ($50K per kid)??
I plan to pay for each kids' 4 years of college (as my parents did for me)...my husband prefers to think...student loans. Either way, even if they take their own student loan...I'll plan to help pay as needed.
Question #3 - Assuming each kid needs $50K....Pros/Cons of...
Student Loan? Can students get loans of up to $50K? Options?
Parent Plus Loan? I know con is higher interest rate.
Home Equity Line of Credit?
Home Equity Loan?