I have kids who are 6, 5, and 2. I was working the numbers to see what goals I might have to help them cover some costs, and the calculators are saying college costs for them (4 years, public, in state) will be between $167-200K. Is this real life? How in the world will anyone, even the most well to do, be able to afford that? My total for three kids would be $583k according to the calculators.

The numbers are stunning. Imagine having no savings and having to take out loans for all of that. Get out of school having borrowed $200k and you owe 8% interest on it ($16k per year, ignoring principal reductions) when you're making $45k in your first job.

Student debt and college tuition are bubbles that have to pop.

I understand appreciation and all that, but I agree those college calculators seem to be a bit absurd.

jake2011 said:

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Don't worry if you don't make very much Hillary will make your college free but if you make like more than $75K you will have to absorb the costs and pay your fair share.

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I feel like that number is far lower. Likely if you make around or more than 50k.

Also, question. At that point, would it be possible to educate abroad, or will their costs go up as well?

Do everything you can to ensure they get a perfect PSAT score... I mean start training them now for the PSAT.

Your numbers are right. We spent something like $360k on three kids. Daughter got two degrees at A&M. There is no way this is sustainable. The hedge is dual credit courses in high school and use of junior colleges as much as you can.

Change your last name to Gonzalez or marry a minority and claim kids as minority and then spend all your money so you have nothing left and can qualify for financial aid. And don't forget to have genius kids too.

Cow Hop Ag said:

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Your numbers are right. We spent something like $360k on three kids. Daughter got two degrees at A&M. There is no way this is sustainable. The hedge is dual credit courses in high school and use of junior colleges as much as you can.

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In today's environment, this is the strongest and most price effective method.


And for those claiming it has to slow down, and those numbers can't be right: they're absolutely in line with what the last 15-20 years has done.

When I first started running college numbers for clients 15 years ago, we were using 6-7% inflation with the comment "yeah we know it will probably slow down, but let's play it safe for now." If we hadn't run those numbers, we would have missed too low and it's still not showing signs of slowing at this point.

So while I agree with you that it has to slow down at some point, don't look for that to happen in your kids lifetimes assuming your kids have already been born. If you miss, just be aware of what you'll have to come up with.

agnerd said:

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Change your last name to Gonzalez or marry a minority and claim kids as minority and then spend all your money so you have nothing left and can qualify for financial aid. And don't forget to have genius kids too.

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This unfortunately. My cousin is a half hispanic female who was mid Bs student in high school. Her father worked a very good position at the Exxon Mobile HQ doing international auditing. She got a full ride to Arizona St, with room and board, and a lap top. She only had to maintain a C average to keep her scholarship.

No matter which numbers turn out to be correct, the amount for three kids will be huge. And don't forget they will want something to drive. And then, if any of the three are daughters, don't forget the cost of a wedding (my youngest is getting married December 3rd, lol).

One thing to consider is getting them to take as many dual credit courses that they can, take online courses to the extent they can, and spend two, three, or four semesters at a 2 year school.

What got me with three kids going to college (with five years between the oldest and youngest) was the cost of maintaining of 5 households: my family one, my office, and one each for the three kids. Got to where I hated reading my email or texts because it seemed most were "Dad, can you put $800 in my account" lol. If there is a school that is within commuting distance, I would take a look at that option, at least for the first two years.

Another consideration is what they plan to major in. I would put my foot down on no nonsense degrees. It doesn't make a lot of sense to pay for four years away at college for a degree that pays very little. And I am convinced more kids go to college than should. Of my top ten clients, only one has a college degree and I do not think the other 9 have a single college credit. All have taxable incomes from $300K to nearly $2 million. Of course, most of those got into things their parents were involved in.

One or more changing majors, or getting an advanced degree after getting the undergraduate degree can really break the bank. At any rate, the number is going to be staggering. If you are not setting aside a significant amount of money now, I'd suggest doing so, starting tomorrow! We didn't take out any loans so it is all paid for, but it was such a relief writing that last check for the final semester.

And if I had it to do over again, I might have gotten a "friendly divorce" and let the kids be her dependents to take advantage of some of the tax things available to lower income folks. We never got to use much in that regard, as our combined income prevented it. It would likely help with scholarships as well and change the surname as others suggested!

Those numbers seem conservative, if anything.

Just put 3 kids through A&M. About $20k/yr per kid for tuition (in-state), fees, books, computers, room, and board. So about $240k total.

Doesn't include cost of a car, maintenance, repairs, and insurance.

The main thing is to save as much as you can before they start, and then you can probably pay some out of pocket as you go while they're in school. Plus, they can work or take loans if needed. Or land scholarships .

I saved what I thought was a lot before they started, and I'm glad I did because I depleted it all by the time the last one walked across the stage. But well worth it.

Edit: your numbers look about right, if you take the $20k I mentioned and assume college costs increase about 6%/yr in real terms for another 12 years. It's expensive... no doubt about it.

Put everything you have on red. If you win you can find your kids college. If you lose you will qualify for aid... (I kid).

But I am serious about the PSAT. Train your kids to beat the test and get a national merit scholarship full ride any where in the USA. It's insane what one test score taken in 10th or 11th grade can earn you free ride anywhere.

Was talking to a client in Boston recently and he mentioned the youngest graduated last spring and he spent $500,000 to put his 3 kids through college. They were all out of state at private schools.

My three are in college or starting next year and when they were little the calculators said have $125,000 for each. The oldest is graduating in the spring and it looks like about $80,000 total cost which matches the $20,000 a year number above. She's a science major and not into clothes and studies a lot so she wasn't shopping and socializing as much as some of my friends daughters who said their kid was closer to $30,000 a year (which is very close to the 125,000 estimate from the calculators when our kids were little).

Approaches to reducing college costs you can control:
-AP Credits in High School are the lowest cost way to go for some of the basics.
-Dual Credit in High School is more expensive than AP but cheaper than most colleges.
-Junior college is generally cheaper for the first 2 years for the general basics than 4 year colleges are.

-Raise them to understand beer and pizza rather than chivas and steak in college is not slumming it.
-Part time work in college is not a four letter word and a great resume builder.

-The dorms are expensive to live in and the meal plans are even more expensive so off campus housing can make a lot of financial sense.
-Buying a place and renting out the extra bedrooms to your kids friends makes even more financial sense but not putting them in the dorms their freshman year might reduce their experience being on their own and meeting people on campus depending on how outgoing your kid is.

-Study abroad can be a great experience but can be very expensive and isn't required to graduate.

-Be prepared for the over-achieving kid to get into college and then say "I've got so many AP and Dual credits that instead of graduating early in 3 years I can get a double major in 4 years! (don't ask me how I know....)

My cousin's oldest lives with my parents. He has nothing to his name other than what my parents have given him. He is going to A&M next fall on a Navy scholarship. He will have to join the corps.

There are ways to pay for college when money is tight or doesn't exist.

I sure hope you all are saving for YOUR retirement first , and spending all that college dough second

Friend has a kid at tu, living in a dorm


He's paying 20K per year

bmks270 said:

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Put everything you have on red. If you win you can find your kids college. If you lose you will qualify for aid... (I kid).

But I am serious about the PSAT. Train your kids to beat the test and get a national merit scholarship full ride any where in the USA. It's insane what one test score taken in 10th or 11th grade can earn you free ride anywhere.

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Or you can put them in the military for a two year contract and get tuition and fees waived with the hazelwood act. Also get the gi bill.

O'Doyle Rules said:

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I sure hope you all are saving for YOUR retirement first , and spending all that college dough second

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No kidding. Especially before paying for grad school or weddings.

Agree with Stive and have seen the same with my clients. One interesting fact - A few years ago, I happened across an old newspaper (1975) and it had an article predicting what college would cost for newborns. The predictions were astronomical versus reality (I graduated in 1994). It made me wonder if we are doing the same now with our calculations.

Probably wishful thinking, but does cater to the contrarian thought.

When I started in 2000, my first TAMU bill for Crocker, 150 meal plan and 13 credit hours was just under $5k. Books (being the guillible fish) were another $500.

My last semester 'paying' for school as a MS student was just north of $5k for 9 hours (and fees) of just tution. R&B were coming from savings and usually ran about $10k/year for the poor grad student life.

My first two years were regulated tution via the state ($25 a credit hour, about $50 an hour in fees). Junior year it took off, as the regulated rate was uncoupled....

~egon

The real kick in the balls is when you have been saving since they were born and every single year the calculator tells you you need to start putting in more when you re-run the numbers

Just about finished with our last - A&M Class of '17 - graduates in May. The $20K estimates are spot on. Couple of notes from our experience.

1. I told ours in middle school. We will help get you through a state school. Private - they were responsible for the difference
2. Jr College is a great way to take care of the 1st 2 years.
3. Right now there is a great tax credit for those ($2500/yr for 4 years). Phase outs start at something like $163K
4. Was able to get away without student loans in undergraduate. Save those for graduate school if necessary
5. WORK your way through school is not a 4 letter word. Great jobs. My current student is working 8 hours a week or something like that. About $2K/yr. Make them get a summer job. The resume will look better.
6. Internships in a good field pay serious coin!

Wes '87

agnerd said:

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Change your last name to Gonzalez or marry a minority and claim kids as minority and then spend all your money so you have nothing left and can qualify for financial aid. And don't forget to have genius kids too.

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A. Way to diss Ags who are a Gonzalez.

B. Even if you spend all your six figure income. Aid doesn't take into account how much you're spending. Its how much you're making.

So what do you guys think of Texas Tuition Promise fund?

You can purchase 1 yr of 30 hrs at top tier in state for ~$13k...

Obviously I realize this doesn't cover books, R&B etc.

But what are your thoughts on prepaying 2 years of hours per kid ahead of time?

What I don't like about is there is no difference for me (kids don't go to college for 15 years) vs people who go to college in 5 years that I can tell.

And I'm not sure what that cash in paying upfront is actually getting invested in...

We bought 2 years worth. Figured one of the kids would use them. The price of Type 1 units was like $100. Now they are somewhere in the range of like $118 or more. Not a bad investment, IMO.

JUCO first 2 years
Split the loans with the kid

Get creative and think local. We live in CS and our son is focused on A&M in part for cost. We just attended the prospective student session on campus and almost half of the projected $21k annual cost is for things I'm already paying for like food, clothing, gas and a place to live. He can live at home for his first year then we'll buy a house or duplex after that and charge his roommates rent that will at least come close to paying the mortgage meaning our total still doesn't go up much. The cost skyrockets when you start paying for dorm/apartment rent, meal plans etc.

My advisor says 250k/kid.

We have saved up more per kid than I paid for 6 years at A&M.

Guitarsoup said:

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My advisor says 250k/kid.

We have saved up more per kid than I paid for 6 years at A&M.

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To go where? That's just absurd unless it's a decade into the future. This is literally what A&M presents. All numbers resident for simplicity:

Tuition and Fees - $10,030
Loan Fees - $64
Room and Board - $10,368
Books and Supplies - 1054
Travel - 2282
Personal Expenses - 3474
Total - 27,272

Multiply that by the five year plan and you're at $136,360 ignoring inflation. Even with 10% inflation on all of those items which isn't going to happen you're at $166,498.30.

Read my post above. Think local. We live in CS which is an advantage we have when it comes to A&M. There is more money on the Room and Board line that I don't have to pay if he's at A&M than there is on the Tuition and Fees line. He already said he wants to live at home his first year because he knows cost is important. Here's how I see those numbers for our situation:


Tuition and Fees - $10,030 - Obviously have to pay this.
Loan Fees - $64 - Not sure I know what this is but it's not a make or break amount so who cares.
Room and Board - $10,368. Living at home there's no rent and he has no adverse effect on the cost of operating our house.
Books and Supplies - 1054 - Obviously have to pay this.
Travel - 2282 - I already pay his gas right now during the school year. A&M may be farther away than CSHS but that's an incremental change that's more sensitive to the price of oil than to how much more driving he may do.
Personal Expenses - 3474 - A&M describes this as clothing, cell phone, etc. Again I'm already paying for these things so I don't see a huge change.
Total - 27,272

So for all the scary numbers I see me having to pay $11,084 per year in Tuition, Books and Supplies and maybe some incremental changes in the rest. It's just not a scary amount if you approach it creatively. Several lines in that total you're already spending most likely.

Edit: My point is not that I have it good. Living in CS certainly helps when we all want our kids to go to A&M but that's not the point. Think local. If you live in Houston look at schools there. Same for Dallas. If you're dead set on A&M buy a duplex and rent the rest of the rooms for the mortgage. That leaves you with operating expenses which will be half of the Room and Board number per year. You're already spending most of that Travel and Personal Expenses amount so I don't see that as $6000 in new spending.

My kids will be class of 35 and 37

Aggiewes said:

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5. WORK your way through school is not a 4 letter word.

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2nd or 3rd person to use this saying, Wtf does it mean?

Living at home would have sucked. In fact I think the experience living on campus is well worth 10k.