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<p>lol, that is true… just dig out her vid when we visit the zoo, took the train ride… it was just like yesterday.</p>
<p>but wait, redwing… Where did you get the class of '13 COA figure? UC costs 30K/year right now for in state class of '14 for all intensive purposes, that is 120K right there, assuming the tuition will not increase for 4 years, which I am dreaming.</p>
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<p>Ah, but having college savings won’t hurt chances at Merit scholarships, only need based financial aid. And regardless of how the money is saved, I think the chance of my kids qualifying for need based financial aid is about zero. (I ran my income and savings through the FAFSA quick calculator…results weren’t pretty to say the least.)</p>
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<p>That’s my estimate for COA. 80k total for 4 years. </p>
<p>Needless to say, I don’t live in California.</p>
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<p>Absolutely true! When the kids graduated from high school, I turned 2 years of college costs into cash. When they finished their sophomore year, I turned the remaining 2 year of funds into cash. </p>
<p>You also have to remember that most parents pay for college through a number of different pots of $$$, of which savings is only one. There are student loans, parent loans, student summer and on campus jobs, home equity, current income flow, having a parent take a second job or having a SAH spouse go back to work, merit aid, etc.</p>
<p>$45K savings now, invested over 18 years, will take a lot of pressure off when baby is ready to make college choices. Be sure to learn about wise investing…</p>
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<p>Good grief, that’s insane. Earned my gradual degree in '89 and remember agonizing over the payments each of the four semesters for $2,500 at the flagship UC campus. </p>
<p>In that case the OP should put aside $300 per paycheck.</p>
<p>Talk to a VERY reputable financial advisor who will assess your career plans, real estate (if any), other savings, potential retirement funds, etc. There is no way that anyone here can offer you anything other than well intended, educated, advise, based on limited information given. Talk to an expert. You are not in the area, but he has written phenomenal books and is well known. Please check out any financial books by Ric Edlemen. </p>
<p>From his website, tips on picking a financial advisor:
[How</a> to Choose a Financial Advisor - 10 Questions to Ask When Evaluating Financial Advisors](<a href=“http://www.ricedelman.com/cs/education/article?articleId=990&titleParam=How%20to%20Choose%20a%20Financial%20Advisor%20-%2010%20Questions%20to%20Ask%20When%20Evaluating%20Financial%20Advisors]How”>http://www.ricedelman.com/cs/education/article?articleId=990&titleParam=How%20to%20Choose%20a%20Financial%20Advisor%20-%2010%20Questions%20to%20Ask%20When%20Evaluating%20Financial%20Advisors)</p>
<p>Best of luck.</p>
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<p>I have! He reviewed my financial situation, and said, “wow, I’m very impressed…about the only thing you could do is start saving for college.” Hence, I’m here.</p>
<p>Then I would follow up with him regarding his suggestions on how to do so. If he doesn’t feel this is his best area of expertise, then ask for a referral.</p>
<p>Cheers!</p>
<p>We borrowed. We should have borrowed even more.
Then we saddled the kid with the PLUS besides his unsubsidized Stafford. :)</p>
<p>Loans are now permanently fixed at 2.75% for 20 more years and 2.25% for 10 more years (originally 25 and 15 years.) </p>
<p>Kid’s UGMA got wacked in 2000 and again 2001-2005 however, the UGMA is still sufficient to extinguish the debts.</p>
<p>Unless something has changed recently, a UGMA account that is converted into a 529 account will be assessed at the parents’ rate even though it is owned by the kid. It’s a loophole they haven’t gotten around to closing, and probably never will.</p>
<p>^^^but an UGMA legally converts to the kid when he turns 18. He wants to buy a car? It’s his money, and you can’t stop him. Not so with a 529 plan.</p>
<p>^ And a 529 owned by the parent can be reassigned to another kid (or other family member) if kid #1 ends up not going to college for whatever reason. Not so an UGMA which is kid #1’s money.</p>
<p>re: UGMA
<p>Bclintonk in post 37 gives the best advice. Really. Stop treating it as though it has to be done and over with 18 years before the fact. Invest wisely, stay flexible and add on periodically (monthly, annually, whatever works best).</p>
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If the OP’s philosophy is to pay for most but not all of college, then aiming to have 75% of the COA of an in-state public school saved may work for his kid. IMO, we didn’t want to restrict our kids to just public or instate schools and our philosophy was to pay for undergrad. That said, we certainly encouraged them to seek institution based and outside merit money. We saved in many different areas, but only one (the 529) was specifically earmarked for college. DH had savings and investments identified for each kid’s education through UGMA (eg USAA income fund) And when the kids went to school we paid from these funds and the rest for liquid income/$.</p>
<p>We added to our retirement and to their college funds every year. Worked for us.</p>
<p>As an aside, not understanding this statement, artlovesplus:
I thought you’ve mentioned your d is at UofC. Its certainly plenty costly, but per this, its cost (room&board) comes in at # 28 of the top 100: [CampusGrotto</a> - Most Expensive Colleges for 2009-2010](<a href=“http://www.campusgrotto.com/most-expensive-colleges-for-2009-2010.html]CampusGrotto”>America's Most Expensive Colleges - CampusGrotto)</p>
<p>Highest Total Cost 2009-2010
Total Cost = Tuition + Room/Board </p>
<p>College Cost
<p>And don’t forget to sign up for Upromise and Babymint. Free money is great. may not be a lot based on how you use the account, but its free <a href=“http://collegesavings.about.com/od/otherfundingsources/a/partnerprograms.htm[/url]”>http://collegesavings.about.com/od/otherfundingsources/a/partnerprograms.htm</a></p>
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<p>No, it’s not a “terminal” decision. The money is there and can be used for any purpose. If used for non-education purpose, there are penalties. Many people say appreciation of the assets tax-deferred more than pays for the cost of the penalty.</p>
<p>babyontheway, good for you. We also saved quite a bit for our children’s education, started when they were born. We were pretty clear we were not going to get need based aid and considered it our job to pay for their schooling. Both of ours ended up with merit money which made the COA about the same as the state schools. We were told when they were about ten that we had saved enough. Then the return rates dropped off and the COAs did not. Long story short we ended up with a legal settlement on a business related matter. Put the money aside and used both it and the savings to pay for both to finish private school with NO debt.<br>
Oldest just finished and is saving on his own for grad school.<br>
I disagree with the idea that you shouldn’t save because it hurts your FA ability. The money you have saved was saved for college costs and it should be used for those costs. I have had people ask me how to hide those funds so they can get need based FA. Give me a break.</p>
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Not true.</p>
<p>You can take back the money at any time. But the gains will be treated as ordinary income and taxed, and you will pay a 10% penalty, except under certain conditions:</p>
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[What</a> is the penalty on an unused 529 plan?](<a href=“What is the Penalty on 529 Plan Withdrawals for Non-Qualified Expenses? - Savingforcollege.com”>What is the Penalty on 529 Plan Withdrawals for Non-Qualified Expenses? - Savingforcollege.com)</p>
<p>Come on, JYM, I just wrote the check for the “college bill” portion and it came out around $19,000/quater already. Add the book cost(2 books from mail order for $320, more to come) and the move in/move out cost, vacation airfare, storage over the summer and personal costs, it is going to be way over 60K/year. You really don’t have to show me a table from some theoratical calculation by a reporter.</p>
<p>Our total move in travling/lodging/food cost plus things we needed to buy locally, monitor, shampoo, hangers, storage boxes and such is over $3,000. Tell me it is not expensive. And we did stayed in hostels on campus, the first ever experience after the college.</p>
<p>Come on yourself, artloversplus. I am not disputing what your total out of pocket expenses might be. We all pay travel, books, storage, health service and student activities fees, supplies, hangers, etc etc in addition to tuition, room and board. But you claimed that your dau was at “the most expensive college” and that simply isn’t true. I was actually pleasantly surprised to not see my younger s’s school on that list. His tuition alone is 38,300 this year. Fortunately, his merit scholarship pays it.</p>
<p>According to this [Tuition</a> to increase 4.2 percent next academicyear - The Chicago Maroon](<a href=“Rambling and flat, this family turmoil doesn’t amount to a handful of cherries – Chicago Maroon”>Rambling and flat, this family turmoil doesn’t amount to a handful of cherries – Chicago Maroon) tuition is 40K. If you pay $19K a quarter, you’d be paying 57K for 3 quarters (assuming your D isn’t going in the summer) for the “college bill”. Is that correct? Did you have to pay for health insurance through the university as opposed to your child having it through your employer? That is expensive for sure, but is a separate cost. U of C is expensive- no question, its just not THE most expensive, as you claimed, and I disputed. You should be happy with that :)</p>