Interesting conversation about college savings

[LivingAlmostLarge]

Unless you become disabled or unable to continue working in your field. Student loans are not discharged. So you'd still owe and you tied up college funds for your kids. And if you were unable to work and had a substantial decrease in income your kids would then qualify for perhaps a free ride to college. But you saved all this money for their school, nothing for retirement and you didn't pay off your school loans.

So I would say logistically even if you have disability insurance that only cover 70% maximum post-tax income. Is that enough to live on? And do most people have that? I do, but it wouldn't cover everything I would want to afford or save for.

Thus I hope DS your friend considers what happens if they can't work.

[shaggy]

I agree that it's best to take care of your own financial needs before you take care of a child's. It's like putting your own oxygen mask on first in an airplane emergency.

IMO it does a kid good to have to pay for some portion of her own college education, even if it's a token amount.

[SeanH]

I'll share this in case anyone wants a laugh or a grimace.

http://dentistry.usc.edu/programs/dds/cost-of-attendance/

Obviously not all medical/dental schools are this expensive, but if your child tells you they want to be a doctor you should take a look at the numbers. You might be astonished.

[Darly2004]

I am new here so take it for what it's worth... This is my, and maybe your friend's, perspective on why I am contributing to my daughters' college funds before paying off my own. I was lucky enough that when I consolidated my med school loans that all the incentives now allow me to have an interest rate of 1.625%. Believe me, I am not the type to delay paying off loans by any means. We pay CC in full monthly, plan on paying off our 30 year mortgage in 8-10 years, and usually will not buy things I cannot pay cash for. But with 1.625%, I don't really feel the urgency to do so. Plus, not to sound morbid, but the loan will be forgiven if I die. Let's say, I spend the next 2-3 years paying it off with my bonuses. Then, I die. Sure, my loan is paid off, but I have just paid off a loan that was going to be forgiven anyway and the $150k that could have gone to my kids or investments for our family is gone. I definitely feel that our money could be invested more wisely. I do hope to retire in 10-15 years, so I may consider paying it off right before retirement. Lastly, if I really need the money to pay off my loan in the end, I can use my daughters' 529 funds because isn't transferable?

I'll share this in case anyone wants a laugh or a grimace.


Obviously not all medical/dental schools are this expensive, but if your child tells you they want to be a doctor you should take a look at the numbers. You might be astonished.

I had a friend who went to USC dental school. He said he was borrowing $75 k a year. I was astonished. I went to a private school and borrowed about $35k a year. I really hope that he actually became an orthodontist like he wanted. That amount makes me nauseous just thinking about it.

[disneysteve]

Lastly, if I really need the money to pay off my loan in the end, I can use my daughters' 529 funds because isn't transferable?

You can not use your daughter's 529 to pay off your student loans. 529 funds can only be used to pay for qualifying educational expenses and student loans don't qualify.

[Darly2004]

You can not use your daughter's 529 to pay off your student loans. 529 funds can only be used to pay for qualifying educational expenses and student loans don't qualify.

Oops, you're right. Just looked it up. Well, I guess your friend may have super low rates and feel that her money is better invested elsewhere? When did she graduate? I finished in 2004 and the rates were at an all time low when I consolidated after finishing school

[ESMonitor]

Outside of saving for college education for your children, one of the things you could do is do research into scholarship possibilities. I think you can get some substantial scholarship money for college education and not just through academics...

* I remember a guy in my school who used to film us for our coach when I played high school football. He ended up somehow getting a full ride scholarship doing just that.

* I think also you can be eligible for a hefty scholarship by doing something like playing in the band, which would be time consuming but fun.

* I heard a story of this lady who had several children and did tons of research and got them scholarships left and right, no kidding.

I remember several guys in college that used to serve in the National Guard to help pay their way. They had to go to drill once a month...often on just a couple hours sleep ...things like that. All of those guys are married/family men now and very successful.

Hope this may be of help.

[shaggy]

Outside of saving for college education for your children, one of the things you could do is do research into scholarship possibilities. I think you can get some substantial scholarship money for college education and not just through academics...

* I remember a guy in my school who used to film us for our coach when I played high school football. He ended up somehow getting a full ride scholarship doing just that.

* I think also you can be eligible for a hefty scholarship by doing something like playing in the band, which would be time consuming but fun.

* I heard a story of this lady who had several children and did tons of research and got them scholarships left and right, no kidding.

I remember several guys in college that used to serve in the National Guard to help pay their way. They had to go to drill once a month...often on just a couple hours sleep ...things like that. All of those guys are married/family men now and very successful.

Hope this may be of help.

Each year, thousands of small scholarships go unclaimed because nobody applies. Many students don't go after the small scholarships, but they can really add up.

[moneybags]

Each year, thousands of small scholarships go unclaimed because nobody applies. Many students don't go after the small scholarships, but they can really add up.

This is not really true, but gets said all the time. In my opinion there are two places to pursue scholarships. The first is at the schools themselves. This is your best chance at large dollar scholarships. The second place is local scholarship contests. The pool of applicants will be much smaller than any other small scholarship you will apply for.

[disneysteve]

Each year, thousands of small scholarships go unclaimed because nobody applies. Many students don't go after the small scholarships, but they can really add up.

This is not really true, but gets said all the time.

Actually, I believe it probably is true, but there's more to the story. There are loads of small scholarships out there that go unused because they often have very strict and narrow criteria. "You have to be an Asian woman living in Vero Beach, Florida, majoring in Electrical Engineering at Tulane University." I'm making that up but it isn't far from the truth of how many of those small scholarships are structured. It isn't really a surprise that so many of those types of scholarships go unclaimed.

I've started the process of helping our daughter search for scholarships and that's a lot of what we're finding. Pages and pages of scholarship listings with few to none that she actually qualifies for either because of race, gender, ethnicity, religion, home, field of study, etc. We've found quite a few for people (mostly women) entering or re-entering college after a break in their education. A lot for "non-traditional" students.

I'm still searching for scholarships that she is actually eligible for.

[moneybags]

Actually, I believe it probably is true, but there's more to the story. There are loads of small scholarships out there that go unused because they often have very strict and narrow criteria. "You have to be an Asian woman living in Vero Beach, Florida, majoring in Electrical Engineering at Tulane University." I'm making that up but it isn't far from the truth of how many of those small scholarships are structured. It isn't really a surprise that so many of those types of scholarships go unclaimed.

I've started the process of helping our daughter search for scholarships and that's a lot of what we're finding. Pages and pages of scholarship listings with few to none that she actually qualifies for either because of race, gender, ethnicity, religion, home, field of study, etc. We've found quite a few for people (mostly women) entering or re-entering college after a break in their education. A lot for "non-traditional" students.

I'm still searching for scholarships that she is actually eligible for.

Check with your high school guidance counselor for local scholarship opportunities. The national scholarships are super competitive. Check the college website you're interested in - search "scholarship" see what they offer (best scholarship money is at the school).

I still say it's a myth that there are tons of unclaimed scholarships, and these reputable sites agree with me:

http://www.fastweb.com/financial-aid/articles/3291-top-ten-myths-about-scholarships?page=9

http://www.petersons.com/college-search/myths-about-college-scholarships.aspx

http://message.snopes.com/showthread.php?t=55443

[shaggy]

Check with your high school guidance counselor for local scholarship opportunities. The national scholarships are super competitive. Check the college website you're interested in - search "scholarship" see what they offer (best scholarship money is at the school).

I still say it's a myth that there are tons of unclaimed scholarships, and these reputable sites agree with me:

http://www.fastweb.com/financial-aid/articles/3291-top-ten-myths-about-scholarships?page=9

http://www.petersons.com/college-search/myths-about-college-scholarships.aspx

http://message.snopes.com/showthread.php?t=55443

I'm not saying there's big money out there. Like I said, they're small amounts (and I agree with Steve that the criteria may be limited).

Here is the source I used back when I was in college (25 years ago, granted) to find obscure scholarships to apply for. :

http://www.financialaidfinder.com/category/scholarships/

[sblatner]

Our son had the best luck applying for school scholarships and local. He won nothing on a regional or national level. As others have said, the pool is much smaller for school or local scholarships.