Suzie on Oprah-college suggestion

[jIM_Ohio]

1998 8.69%
1999 -0.65%

if memory serves me correctly, 1999 was the effect of the .5% rate increases being done by the fed. There were 2-4 .5 point increases (high rate was 8.5, I think).

rates went back down 2000-2002 (2001 and 9/11 saw around a 1-2% drop in a short period)
then we see
2003 4.09%
2004 4.36%
2005 2.53%

as rates went up slightly I think.

My advice would be to minimize exposure to this (50-50 sounds OK for now). Ohio 529 allows for money to go into CDs, if I could get a 4% CD, I'd be all over that.

[maat55]

I would be willing to gamble that the market will rise more than savings or inflation between now and five years.

[Caoineag]

Thank you debbie.

Jim, no go. Did your parents help your siblings out after college? I plan on NOT helping period. BUT unlike most parents my DH and I will preach that from BIRTH.

They are on their own after college. They have to get a job and WORK! There is NO FREE RIDE in my house. If they want to move home they have to pay rent. And if they need to buy food and rent then they need a job and should be HUSTLING before college is over.

Hello slackers! Everyone single one of my cousins and siblings had jobs before college ended BECAUSE their parents ALL Said you are on your own. FUNNY how fast you can find a job when you have NO MONEY TO LIVE ON???

That's going to be my kid. Now exceptions are made like my Sister's middle child who needs extra help because of a learning handicap. Thus they paid for worse grades than their other kids.

And since I've TA A LOT of classes, you basically have to be a turnip in class or NOT show up if you want to get a D or F. Like I said a C get 75% because they handout C for showing up in most universities.

The bell curve is how classes are graded with the top being a C+/B-. So you have to not show up to fail or be drunk off your behind. I TA in college and as a graduate student. I know what it takes to fail (D or F). And we don't hand them out easily.

So to me college is not a silver spoon that is to be taken for granted.

I agree with most of your sentiment but am wondering what college you TA at. My college had what are affectionately referred to as weeder courses. You were meant to have to work for a C so that you would think twice about going for that degree. I don't know how many biology majors I knew who were working on their second or third try through Chemistry or Organics. Physics was supposed to be quite the weeder as well. Course, I did Chemistry twice and finally made it out of college with a 3.67 but I did struggle my first two years of college. But I paid for it all myself so I agree on the rest, lol. (I am proud to say that my last try netted by a B in the course because I finally figured out how to pass his tests.)

Back on topic, I would split between the two and let the kids have their own loans to pay back. Why should parents go into debt for their children's educations?

[Snave]

I would be willing to gamble that the market will rise more than savings or inflation between now and five years.

That is why my choice was to keep the funds in the 529 for the next 4 years and keep the moderate/agressive approach. You don't get hit with fees for taking it out early and while it is a gamble, it is one I would be willing to take with teh market the way it is.

[disneysteve]

You don't get hit with fees for taking it out early

Just to clarify, Suze Orman didn't suggest that they take the money out early. She suggested that they transfer the younger son's money to the older son and use it to pay his college expenses.

[maat55]

Just to clarify, Suze Orman didn't suggest that they take the money out early. She suggested that they transfer the younger son's money to the older son and use it to pay his college expenses.

This is true, using the money for the younger son may only extend the growth period by three years.

If you are not allowed to use 529 funds to payback SL, I don't know why they would not allow you to do so, due to the low market, just as they did with allowing seniors to leave their money longer.

At any rate, I would opt for loans on the first son instead of the second, if applicable.