So my daughter is only in 7th grade but I’m already stressing about this. I live in a very high cost of living area and while salaries seem high…condos cost $400k so the average person doesn’t have $100k in the bank for college tuition!!
What is the secret? My EFC will probably be off the chain so no grants or other federal aid for my girl! What do you do?
Looked up scholar programs and many of them are also income based. Minority underrepresented scholarships are also income based.
What are the other options, just SallieMae?
Merit based scholarship are just a couple thousand from what I saw, unless I’m missing something?
Who else is with me in this boat and what have you or your child done to get through the FA situation?
Many schools offer significant merit aid (up to 100% tuition) for the right student. They tend to be the second tier schools that don’t meet 100% need. And there are the public schools that are generally very good.
For your family contribution to exceed the cost of attendance at all colleges…you would need to have a VERY high income. If you are talking colleges that cost $70,000 a year…and your EFC is higher, your income is in the over $250,000 a year range.
It’s five years until your kiddo goes to college. Did you have a plan for paying for college at all?
You mention your high cost of living area…but you don’t mention your income.
What do you think you might be able to contribute annually towards college costs?
There are merit scholarships that range from a few hundred dollars to full rides. Your kiddo right now needs to do her best work. When the time comes…she needs to take a strong courseload in high school and get the very best grades she can get.
When the time comes…in High School…she should prep for both the PSAT, and SAT and/or ACT.
You need to look at your public college options. Start there.
It’s really, in my opinion, too early to start actually looking at colleges because you just don’t have any usable information from your daughter to help give you direction (scores, HS gpa, etc).
There are many kids who have parents worried about how college will be funded.
If there is any chance you can start a 529 account now, I would suggest you do so. Also, if one parent isn’t working, perhaps now is the time for that parent to get a job.
This is how it is, colleges don’t want to be affordable for all, either they buy academic/athletic talent with merit money or give income based charity. There isn’t any way for a student to get enough loans to pay for high ranking private colleges without making parents co-sign. There is no requirement for students who benefit from financial aid, to put some money back in system. I recommend looking for colleges which cost less or give merit scholarships, otherwise you’ll have a rocky retirement.
Thanks for the replies. I make over $100k single parent but with the cost of living in my area I’m not rich by any means. I do have $9k saved in a 529 for her so far but tuition is $25k per year…who has that!! {insert sad face and stressed mom}.
I just want to do things now to prepare and not wait till she’s in 11th grade to know our options.
I want her to think her possibilities are endless but realistically I don’t know how to pull it off.
She will be taking high school credits in 7th grade…it’s all making me nervous.
If you are a single parent with $100,000 income…your kiddo won’t be eligible for any federally funded grant money.
Does your state have any programs? For example, the Excelsior in NY state, I believe she would get tuition free at a SUNY school.
You don’t mention the second parent, but for some schools, you will need to do the CSS Profile…and some also require a non-custodial parent form so if her other parent is alive and well, this might be required.
If you are not married, only your info would go on the FAFSA form, but if you receive child,or spousal support, that would be listed as well.
With $100,000 income…and no non-custodial parent, there are some competitive schools where need based aid is possible. If she is a competitive applicant for those schools, she could,garner merit aid elsewhere.
But the merit aid landscape is likely to change before she actually is ready to start looking at colleges in 10th or 11th grade.
You are in a relatively common situation. “Full need” as measured by the university is often not the same as “full need” as understood by the parents. Also, many universities don’t meet full need.
The main secret IMHO is that there are many very good colleges and universities, and each family needs to find one that makes sense for each student. In many cases in-state public universities can be an academically very good and relatively economical choice. Other folks here on CC can suggest schools where merit scholarships are likely. They can range from very modest to quite significant.
You need to consider multiple options, and keep an open mind.
We were in a similar situation where the EFC showed us being full pay, but with me retired (or about to retire for my older daughter) we couldn’t afford full pay at private schools in the US (where we live). We were however able to find academically very appropriate schools for two very strong students, which were within our budget.
Save aggressively in the 529. Can you put more into it? Can you double your contributions? If you get any raises, put the entire amount of the raise into the 529. Try to save enough for room and board for all four years, which you can estimate will be around $50k-$60k. That way, if she gets a full tuition scholarship, you’ll be all set with tuition, room, and board. BTW, $25k tuition sounds like a state school. Merit aid is more robust and common at private school, where tuition alone, not counting R&B, is more like $$40-50k.
Also, with an income of $100k, your D might be eligible for FA at the more generous schools, which meet full need. But the missing piece of information is the income of the other parent. That will figure into the FA calculations if there is another living parent.
Don’t think of schools as ‘Second Tier’ (I know the OP didn’t, but some of the responses did classify them that way). There is nothing wrong with state flagships, midwestern LACs, small STEM schools, the service academies. Florida, Georgia and Tennessee have pretty good merit scholarships for instate kids. SD, Wyo, Missouri and NM have very low instate tuition AND some merit money. Some states give good merit awards to OOS kids, like Alabama, Mississippi, Ohio.
It is good to make some financial plans now, but don’t fall into the hole that life is over if you can’t pay for a $70k college. There are plenty of schools that come in at under $30k, and they aren’t second rate (even if people think they are second tier). I have one kid who went to a school many on CC might consider third tier, but it was an ABET accredited engineering school and she had a job lined up before graduation. It was a great fit for her and we never questioned the rankings.
Do what you are doing - read a lot here on CC. You’ll learn about AP classes and duel enrollment and being a national merit finalist. You might learn about some great scholarships out there that might be perfect for your daughter. You might learn about state programs for your state or tax credits (way too many years away to plan on those since they change all the time). Soak it all in and be flexible.
Because it will grow? And because the earnings can be withdrawn tax-free? Not everyone gets a state tax-deduction on their 529. Many people (like me) don’t even keep a 529 associated with their own state! I have a Utah 529. I don’t live in Utah. But it’s still a better deal than my own state’s 529.
OK - fair enough. That’s a risk tolerance difference. If needed in 3-7 years, I don’t want a lot of risk so the tax savings on growth is much less than the tax penalty of using for non-qualified expenses.
What does your overall savings plan look like? Are you maxing out your 401(k)? Do you have at least six months of current expenses in liquid form as an emergency fund? Do you have easily reloadable savings for the random things that happen in life like new tires for a car or the co-pay on dental work?
Helping your child pay for college is just one part of your total financial picture. If everything else is in good order, shave off what extra you can and add it to the 529 account or put it into a different savings vehcile that works well for you but that you earmark for college expenses. If your kid were in college right now, what would you be able to pay out-of-pocket? Aim to save that much this year.
Starting soon, let your daughter know that when she applies to college, she can dream big, but that affordability will be the final deciding factor. Just like now. The two of you can’t do everything you’d like to, because some things are out of your budget. If she is used to seeing you make wise budgeting decisions, choosing the affordable college won’t be freakisly aberrant behavior for her. It will just be the sensible thing to do.
Start laying the ground work now with your daughter about the importance of budget and affordability in general life and then in college. It’ll be easier to work with her on choosing affordable schools if she isn’t surprised by the family finances.
Make sure you aren’t inadvertently shooting yourself in the foot by putting a too much emphasis on prestige. Make sure your home is state school friendly.
Like others have said, you might be surprised what you qualify for. Hopefully, she’ll be a strong student and able to get some merit. Start saving what you can. Better to live more conservatively now, do your best to be debt free In 6 years for college.
Don’t under estimate merit aid. Our kid had the choice of 3 schools one of which offered him full tuition merit based. We only had to come up with the room and board. He is a good student so that helps. We had to set the right expectations early. We told him that we probably couldn’t afford an ivy. He ended up at a great LAC that is a good fit for him and with merit, it ended up costing about the same as our flagship school.
Her possibilities for which college to attend probable AREN’T endless. That doesn’t mean her career options are limited. They are two different things. Far better to set expectations for her when you start discussing colleges around sophomore year than pretending the whole world of colleges is open to her.
And just saying… I’d kill to find a decent $400K condo in my city! Lots of people live in expensive markets. Something to consider — can you/should you move to a different location in the next few years? Can you find similar work where the cost of living is lower (and maybe you like the state university system better, although I have no idea how you feel about the one you have now)?