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    #16
    Originally posted by optimist View Post
    $50K a year in savings includes retirement. You take that out, you are closer to $30K. Then adjust for the fact that sometimes you need to reach into your savings to put in a new AC or replace an old car - and you are closer to $20-25K. Things don't stop breaking down just because you have a kid in college.

    If my kid could get into MIT, I would pay whatever it took. But he can't. He is not a genius, just a bright kid with ADHD. I do, however, want to get him the best education I can, the one that would fit his needs.

    We've been to our state flagship, and honestly, I'm not impressed. So impersonal, so crowded. He would get lost in all the paperwork and bureaucracy the first week and nobody would care. And all the smaller privates appear to charge $50K+. May be it's just the facade and they'll give us a discount, who knows . For now, I'm just trying to determine my own comfort level so that I know when to say "no."
    I heard smaller schools offer money often. I'm not sure how true but that's what i heard. So just apply if it's only $100 then 10 extra schools is $1000 for a chance at maybe getting a big scholarship?
    LivingAlmostLarge Blog

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      #17
      I'm probably in the minority here, but let your son take out student loans! Not for the full amount, but for maybe 1/3 or so. It will provide debt that he can work to pay off when he gets employed and during summers, so he can learn that nothing comes free. It will help his credit rating as well.

      Spoiler alert: After he graduates from college, help him pay off the student loans, set up for a 4-5 year payoff schedule.

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        #18
        Originally posted by JoeP View Post
        I'm probably in the minority here, but let your son take out student loans! Not for the full amount, but for maybe 1/3 or so. It will provide debt that he can work to pay off when he gets employed and during summers, so he can learn that nothing comes free. It will help his credit rating as well.

        Spoiler alert: After he graduates from college, help him pay off the student loans, set up for a 4-5 year payoff schedule.
        Federal loans for undergrads are limited to $5.5k the first year, $6.5k the second, and $7.5 the last two. It would hardly make a dent.

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          #19
          Originally posted by optimist View Post

          Federal loans for undergrads are limited to $5.5k the first year, $6.5k the second, and $7.5 the last two. It would hardly make a dent.
          How big of a dent it would make wasn't really Joe's point, I don't think. It's more for him to have some skin in the game and learn to be responsible for paying a recurring expense as well as to benefit his credit score (not that you should ever borrow solely for that purpose).

          Our daughter borrowed 15K (7.5K each of her last 2 years). She paid it off within a year or two of graduation so it was no great burden but it gave her that experience and credit benefit.
          Last edited by disneysteve; 10-15-2021, 05:28 AM.
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

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            #20
            Originally posted by disneysteve View Post

            How big of a dent it would make wasn't really Joe's point, I don't think. It's more for him to have some skin in the game and learn to be responsible for paying a recurring expense as well as to benefit his credit score (not that you should ever borrow solely for that purpose).

            Our daughter borrowed 15K (7.5K each of her last 2 years). She paid it off within a year or two of graduation so it was no great burden but it gave her that experience and credit benefit.
            Thanks DS. Yes, the point is to give your young adult some practice at financial accountability. We're practicing this now.

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              #21
              One technique: tell your son that you can provide $XXXXX/yr for college, and he's responsible to figure out how to pay for a good education (between your offer, scholarships, work, and a small amount of federal loans if required).... Any excess becomes his as a gift.

              That puts the ball in his court to find the best value for the dollar, gives him some responsibility to research, apply, and get to a viable solution for himself. Valuable adulting skills, if you ask me.
              "Praestantia per minutus" ... "Acta non verba"

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                #22
                You have $55K saved. You say you could probably cash flow $25K/year but no more so let's say $20K per year to be safe. $55K + $80K = $135K. $135K / 4 years = $33.75K/year. You say loans are out of the question so I won't factor that in and won't try to persuade you otherwise. There's inflation so no more than $32K the first year plus whatever your son contributes through scholarships and work plus whatever other family members might contribute (I say ask grandparents and other family members who are inclined to give gifts to forego material gifts for birthdays and holidays in lieu of college cost contributions). You'll have options but it won't be a "the sky's the limit" situation.

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                  #23
                  He is applying for scholarships, definitely. Grandparents are not an option - I am a first generation immigrant with no family here. I am also infinitely wealthier than my family abroad and wouldn't dream of asking them for money.

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                    #24
                    Originally posted by optimist View Post
                    He is applying for scholarships, definitely. Grandparents are not an option - I am a first generation immigrant with no family here. I am also infinitely wealthier than my family abroad and wouldn't dream of asking them for money.
                    Thus the qualifier "who are inclined to give gifts." Not all family members give gifts.

                    So ... I say $32K the first year plus whatever your son contributes through scholarships and work.

                    Have you figured out a number that you are comfortable with?

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