Yes, there is an annual limit, depending on the type of the retirement account and the age of the account owner (catch-up contributions for older account owners). The annual limit for traditional and Roth IRAs this year is $7,000, with a $1,000 additional contribution allowed for those 50 and over. Employer sponsored plans like 401(k)s and 403(b)s generally allow a maximum of $23,000 per year, with a $7,500 catch-up contribution. These numbers are for 2024. This is just a broad overview of the most commonly used accounts.
If someone really has $800k in a low-yield checking account as their primary savings and investment tool, that’s insane.
The Amigo gives you instate tuition & fees which is $10,660/year for full time (up to 16 credits/semester) students.
Housing and meals adds another $10,916/year.
Total out of pocket $21,576 plus transportation. (ABQ has an international airport just about 4 miles south of main campus. Less than a $20 Uber to campus.)
I assume you have health insurance that you’ll t be able to use in Albuquerque.
UNM’s Medical School and Hospital is 1 block north of the undergrad dorms. So within convenient walking distance. UNM’s day surgery and cancer treatment center, and its Children’s Hospital are on the intra-campus bus route (and about 1/4 mile from the med school library)
UNM offers everything you need to be a viable med school candidate.
It also depends of what available at their jobs. Since they do not have green cards retirement accounts maybe not best idea since they are not accessible until retirement and foreigners may need to move out of the country.
Given her parents reaction to her request to run the NPC, I think she should not be talking to her folks about how they store their money, etc. It’s likely to lead to more family discord and they don’t sound like they ate going to listen to her information anyhow.
I am a little concerned about costs that are above $20,000 a year.
@not will your parents pay the additional $1600 +/- for the University of New Mexico? It seems like a great option for you. Will they pay for travel expenses if you fly? Does the $20,000 include travel?
You will need spending money and I believe that the money you saved can last awhile…if you are frugal. It is important to have some money to go out with friends. You can also continue to babysit during breaks and save any cash gifts etc.
I am glad you are keeping Alabama, and I think it was mentioned that you could commute to the University of Cincinnati (good school btw). The University of New Mexico sounds like a great option…if your parents will pay the additional fees
They said they would loan her money above 20k. If UNM seems like the best option, then borrowing from her parents for $1600 a year plus travel seems like it wouldn’t be too much of a burden.
I fact, think she said they would loan her money without interest, so she could reasonably borrow from them the amount that domestic students would get as federal loans.
In that case, the general rule of thumb is that it’s okay to borrow up to the federal limits on student loans, which are $5500 for the first year, 6500 for the second year, and 7500 each for years three and four. So while it’s best to not borrow at all, especially if med school is in the future, those amounts are generally considered a manageable amount of debt.
Also, I’m so sorry for what your parents said to you. My stepfather called me something very similar on my graduation day from high school when I didn’t immediately sit down to write a thank job letter he thought I should. He was frustrated with me, but that was no excuse and there’s no excuse for what your parents said either. Sending you virtual hugs.
It was a long time ago, and we got past it, but I made sure to never say anything even remotely similar to my kids, regardless of how frustrated I got. So at least one good thing came of it!
At this point, I would suggest putting medical school on the back burner. Get your undergrad degree and do well.
Your status here could change before you apply to medical school…if you get to that point at all. Right now, that discussion is very premature.
@tsbna44 re: medical school funding…if this student does get accepted to medical school here, and has green card status, they will be able to borrow up to the cost of attendance in Grad Plus loans…and many medical school students do that.
University of New Mexico has been suggested as an undergrad and affordable option (and I agree with this suggestion). @WayOutWestMom could this student then stay in NM, get a job, and establish NM residency…and possibly get instate residency for UNM Medical School tuition. How long would that take? Does UNM give preference to its own grads in the medical school admissions process?
Also @not, if you apply and are accepted into an OOS school, your transportation costs will affect that $20K per year. Airline prices vary, but are very expensive for 4 years.
The student could stay in ABQ post graduation, get a job and establish state resident status.
To establish residency post graduation requires at least one year of full time physical residency with supporting documentation and proof of financial independence.
UNM is one of the least expensive med schools in the US. It’s great deal for in-state.
UNM SOM accepts few to no OOS applicants. the exceptions are:
Non-resident applicants MUST meet one of the residency exceptions. For example, age 22 or under and financially dependent of a New Mexico resident, graduate from a New Mexico high school and attending for at least one year, resident of a U.S. County bordering New Mexico, hold a degree (Associates, Bachelors, Masters, or Doctorate) from a New Mexico college or university, non-resident active duty military members stationed in New Mexico, enrolled member of a U.S. Federal Tribal Sovereign Nation, or a legal state resident of Montana or Wyoming, (WICHE applicants must apply through the Early Decision Program (EDP) and meet the average MCAT and GPA from the previous entering class) to receive consideration for admission.
UNM SOM does not favor UNM grads, per se, but UNM is by far the largest producer of med school applicants for the state and it hosts the med school’s BA/MD and PReP (post-bacc) programs.
Indeed. However, there are multiple direct flights on different carriers between Cleveland and ABQ so prices are never outrageous–except for the holidays.
It will depend on how often the OP want to travel home. (And let’s be honest, if her parents want her to come home, they’ll pay for her plane tickets…)
When D2 was in college in upstate NY, she basically only came home for semester breaks, and, starting her sophomore year, she only came home for winter break because she had paid research positions over the summer. She came home for Thanksgiving her first year (I paid for her flights) , but the trip was so fraught and exhausting, she said never again. Fall and spring breaks were for going on adventures with friends or school clubs.
There are likely flights to Cincinnati as well…which is nearer to where the OP lives. They might not be direct flights, but that shouldn’t be a deal breaker, in my opinion.
Yes travel costs fortune between some airports. In our case we had no idea that travel to and from Memphis maybe more expensive than to CA from east cost. We are spending more than 1k per year for DD’s tickets. (Another is in Atlanta and cost is less than $300 per year). So consider travel cost carefully.