Anyone here saving for college?

[DivaJen]

If so, would you mind sharing how you're going about it? DH and I have some money put away, but right now it's in a college-saver certificate through our credit union (the bullk of it is, anyway). I want to say the interest is around 4%, but I can't remember offhand. I'd like to hear what routes others here are taking.

[akaivyleaf]

I'm not saving for College, but I've heard a lot of good things about State sponsored (not sure is sponsored is the right word) but the 529 College Savings Accounts. Here is a link for more info: http://clarkhoward.com/topics/529_plans.html

[mjrube94]

We put away $500/month ($250 per child) to NY State's 529 plan. Hubby and I both work in NY, and they allow us to deduct up to $10,000 of contributions per year from our NYS taxes. (Unfortunately we're not taking full advantage of that deduction...hopefully when DS finishes his ridiculously expensive preschool next year, tuition from that will go toward savings). I'm not really into those really long projection calculators that show me how much I need to save because I think there are too many variables, so I'm just putting whatever I can toward it (after retirement savings)...

[karnic3881]

I simply opened a Upromise 529 account and get whatever rebates from products I buy, as well as $50 I contribute a month. I plan to increase this amount once the debt is gone and other goals are met - I am happy I started now, as I don't have children and don't plan to for a few years. If you're looking for more info, check out www.savingforcollege.com.

[Tree0164]

We have a 529 plan through Fidelity for each of our 3 kids. We put in $50 a month for them.

[Bluezy]

At the moment, CJ and I are concentrating on survival. As time passes we will address the issue of higher education. I worked for mine, and it might be that CJ will have to work for his. Time will tell.

[PrincessPerky]

I am working on making sure the college isn't a waste of time for my DCs, DH was paid ride for quite some time, waste when a Computer Tech guy spent all that loot knowing all about chemical engenering!

So I have two goals,

1. Help DCs know what they like, by letting them do anything they like to test it out now when it is relativly cheap. (I knew what I wanted to do, but not allowed to pursue it)

2. Help KEEP the love of knowledge, so they learn ALL the time, not just when paying to learn.

Prolly not what you are looking for but I think these are two VERY important points that a lot of parents with kids hating school miss.

[DivaJen]

DH and I want DD to be able to do follow her passions, and we want to be able to help fund the education required if need be. If that means summer intensive programs for ballet because that's what she wants to do, so be it. If it means the Brooks Institute for photography, OK. If it means college, then that's what we'll do. And FWIW, college means more to me than preparing for a career, so I do hope it's something DD will want to do.

DH and I both had parents who paid for our schooling we worked for spending money. It worked well for both of us, so that's the path we see ourselves taking at this point.

I did some looking yesterday at 529 plans. DH is going to get in touch with our CPA and talk about tax benefits of various options.

[gakline]

My parents put money into EE savings bonds. I'm not sure how that will work out with the new interest rates.

I'm not totally convinced on the 529 plan though. I read that some schools look at the income/ assets of the students when planning for financial aid. Since the 529 is in the students name, they will receive less aid or scholarships. Might be something to look into.

[karnic3881]

The Upromise account is in my name, and 25 years from now, it can still be that way, and I can use it to pay for my child. I think whether it's in the child's/parents name impacts the amount of aid anyway, I am not sure.

[DivaJen]

Originally Posted by gakline

I'm not totally convinced on the 529 plan though. I read that some schools look at the income/ assets of the students when planning for financial aid. Since the 529 is in the students name, they will receive less aid or scholarships. Might be something to look into.

You bring up a good point. I saw mention of this idea on my readings yesterday. It would seem that monies in DD's name might hurt her chances at financial aid, while monies in my name, or DH's (or both) would be treated differently. I think the 529 would be set up in our names, and not DD's, but I can't remember. Obviously, I have a lot of learning still to do.

IIRC, with the 529 other family members can gift significant sums of money without tax penalties to them. One of my grandmothers might appreciate that, knowing that she could give to DD now for higher education.

[TBH]

You're right, DivaJen. 529 plans are considered parents' savings, so they don't have a huge impact on financial aid eligbility. I think prepaid tuition 529s, though, do have a pretty big impact, according to pfblog's in-depth discussion of college savins options:
http://www.pfblog.com/archives/1427_...contents.shtml

We have a Pennsylvania prepaid tuition plan (altho I wish I hadn't opened it now that I know about impact on financial aid) , and a regular Pennsylvania 529 plan. Unfortunately there are no state tax benefits in PA. Also, I have a Upromise account, but at the rate I'm going it will be a while before there's enough earnings in there to make it worth it to open a Upromise-linked 529 plan. When I do, I'll probably go with Iowa's plan, which is highly rated.

We're only putting away $25/month for college right now, because we're very far from being able to max our retirement contributions. I'm hoping to take some of the burden of paying for college (vague goal is to be able to pay for 1-2 years), but expect that we'll have to do a combination of parent loans, student loans, financial aid, etc. Perhaps the grandparents will be able to help out but I"m not counting on it. My son is only 20 mo, tho, so I'm not really sure what our financial situation will be.

[singinjeannie]

Not saving for college at all. Have four kids and no money left after bills. They'll have to pay a great deal of their own college costs, unless something drastic changes in the next few years. I'm trying to get hired at local colleges and then make my kids go there if they want to attend college.

My oldest son wants to be an Umpire, so he doesn't want to go to regular college - he wants to go to Umpire school. Go for it, baby. It costs less than $10,000 for that.

-Jean

[Luv2shop]

only Upromise as of right now

[brandondrury]

Since the 529 is in the students name, they will receive less aid or scholarships. Might be something to look into.

Chances are strong that if your children are white and you have taken the time to actually consider paying for their college, then you will probably not qualify for a dime of financial aid.

A few years ago, my girlfriend was living on her own making around $8,000 per year and she could not get a dime of help unless she was pregnant or of a different race. In fact, since she was 20, her parent's income was tacked onto hers even though her parent's income is by no means impressive.

In other words, if you spend your time watching TV and going out to eat, the goverment may take care of you (if you are lucky enough to be of some other race than white). If you actually think about your financial future, you are already screwed. At least the 529 allows quite a bit of tax free investing.

Brandon

[pyotr]

Remember that most of what colleges call "financial aid" consists of loans at the prevailing rates. when I was in college those rates were 8-10% or so, it took me til 8 years after my graduation date to pay them off and I didn't have a lot to pay (about $20,000). Nowadays, kids could be looking at over $100,000 just for undergraduate debt if they go to one of the top schools in the country. I know that I felt trapped and resentful toward my parents for sticking me with even this low amount of debt (though I would never say so to them); I told myself I would never do this to my kids and I will not.

I have two kids 8 and 3. and I am currently putting $700/month for my oldest and $500/month for my youngest into a 529 for them. I hope to be able to double these amounts within the next 5 years.

[TBH]

Originally Posted by brandondrury

A few years ago, my girlfriend was living on her own making around $8,000 per year and she could not get a dime of help unless she was pregnant or of a different race. In fact, since she was 20, her parent's income was tacked onto hers even though her parent's income is by no means impressive.

Clearly you know all about it, since you're drawing from such a broad base of information.

I'm white, and qualified for grants that covered half my tuition. I started college at age 16, so my mother's finances were certainly taken into account. I don't consider my case to be representative of all white people, but I don't consider your girlfriend's case to be representative either.

[sweeps]

Originally Posted by claire

Clearly you know all about it, since you're drawing from such a broad base of information.

LOL.

I also happen to be "white" and received about 50% grants and 50% subsidized loans.

[gakline]

Originally Posted by Sweepsplayer

LOL.

I also happen to be "white" and received about 50% grants and 50% subsidized loans.

Yep me too and not pregnant. My parents were well off, I'd say. Grants, loans and scholarships for me.

[brandondrury]

Interesting. Maybe my experiences have jaded me.

Were your grades outstanding? Were you of extremely low income? What factor(s) led to you getting the scholarships and grants?

Brandon