ac04 said:

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Guitarsoup said:

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My advisor said to have 250k each

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this is a bit ridiculous IMO. there is already an enormous amount of student debt out there at today's prices, 250k would throw the ROI of most college degrees so far out of wack that attendance would reduce considerably.

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Then my kids' degrees will be more valuable.

Buying APPL when it dipped to 102 has helped their funds a great deal

Aston04 said:

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Guitarsoup said:

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My advisor said to have 250k each

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college tuition hikes can't keep rising like that.... Completely unsustainable. Mine will proudly go to juco if collge costs that much. Stupid expensive.

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It may not get to $250K per kid, but college costs still have room to grow. They will only level off when people have difficulty obtaining loans to pay, and right now the government is happy to give anyone with a pulse a college loan.

Sorry if I'm hijacking here but I was at Reedy (Frisco) high school football game last week and during halftime the band/dance seniors announced their college plans. Approximately 7 or so kids announced they were going to A&M and studying biomedical science, what's going on with that major?

L8HIT said:

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Sorry if I'm hijacking here but I was at Reedy (Frisco) high school football game last week and during halftime the band/dance seniors announced their college plans. Approximately 7 or so kids announced they were going to A&M and studying biomedical science, what's going on with that major?

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What do you mean what's going on with that major? It is basically the pre-med, pre-vet, pre-dental degree. It is my major that I got prior to med school.

If you don't make it to professional school then I dont know what you do with the degree.

Unfortunately too many students (myself included) think you need to earn a degree in BIMS to get to professional school when you can earn a degree in anything as long as your electives cover the prerequisites for professional school.

JHUAggie said:

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L8HIT said:

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Sorry if I'm hijacking here but I was at Reedy (Frisco) high school football game last week and during halftime the band/dance seniors announced their college plans. Approximately 7 or so kids announced they were going to A&M and studying biomedical science, what's going on with that major?

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What do you mean what's going on with that major? It is basically the pre-med, pre-vet, pre-dental degree. It is my major that I got prior to med school.

If you don't make it to professional school then I dont know what you do with the degree.

Unfortunately too many students (myself included) think you need to earn a degree in BIMS to get to professional school when you can earn a degree in anything as long as your electives cover the prerequisites for professional school.

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Most do it with goals of attending Med or Vet school. I know a few who fell short, and ended up going into nursing or more administrative health jobs. All fairly successful career paths in my opinion. Definitely need to have a goal with BIMS though... that degree on it's own doesn't lend much. Post-grad school of some sort is likely required to start a career.

Dr T and the Women said:

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94chem said:

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National Merit is now worth $42K at A&M, because it comes with a PES, according to the website. Of course, you have to keep a 3.5...which is a tall order in some majors, unless grades are more inflated these days.

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A 3.5 shouldn't be hard for a PES scholar regardless of major. If you can't keep that you don't deserve the top scholarship at A&m imo

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Like I said, grades have probably been inflated the past 25 years. 3.75 was the #2 GPA among ~60 chemistry majors in early 90's, and was good enough to get into any doctoral program in the country.

JHUAggie said:

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L8HIT said:

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Sorry if I'm hijacking here but I was at Reedy (Frisco) high school football game last week and during halftime the band/dance seniors announced their college plans. Approximately 7 or so kids announced they were going to A&M and studying biomedical science, what's going on with that major?

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What do you mean what's going on with that major? It is basically the pre-med, pre-vet, pre-dental degree. It is my major that I got prior to med school.

If you don't make it to professional school then I dont know what you do with the degree.

Unfortunately too many students (myself included) think you need to earn a degree in BIMS to get to professional school when you can earn a degree in anything as long as your electives cover the prerequisites for professional school.

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Quite true. I have the degree too and, while I'm proud of it, I now don't really see the point in it. It may be good for vet school, I'm not sure. But I would think a med school would, if anything, prefer a more "well rounded" applicant with a degree in a different area.

#notsohumblebrag

I keep wondering what will happen when the college bubble blows up... and the government significantly reduces the subsidy to attend college... less subsidy, more cost control.

Will be interesting to watch and I hope it kind of happens before mine go!

That being said, I'm aiming for about $100k each before they attend...

Ag92NGranbury said:

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I keep wondering what will happen when the college bubble blows up... and the government significantly reduces the subsidy to attend college... less subsidy, more cost control.

Will be interesting to watch and I hope it kind of happens before mine go!

That being said, I'm aiming for about $100k each before they attend...

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When will they attend? (How old are they?)

4 between 13 and 16 (almost 17)

Ag92NGranbury said:

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I keep wondering what will happen when the college bubble blows up... and the government significantly reduces the subsidy to attend college... less subsidy, more cost control.

Will be interesting to watch and I hope it kind of happens before mine go!

That being said, I'm aiming for about $100k each before they attend...

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The Fed isn't going to stop subsidizing higher ed. It feelz too good.

So I don't have any kids, yet. So maybe help me out here.

As I understand it you can change the beneficiary of a 529 once a year. What's to stop me (why would it be a bad idea) from opening an account well before I have a kid? Then if I don't have one I can go back to school or help pay for my nieces and nephews college?

Also, what are the restrictions on paying for room and board out the fund? Do they have to live in the dorms or can I rent them an apartment/house?

If possible, i suggest maxing out both spouses Roth ira before contributing to a 529 as I believe contributions may be withdrawn tax free for educational reasons.

However that shouldn't be only plan, but my opinion is the retirement should be taken care of first anyway.

(I believe that is correct)

I bought Texas Tomorrow Fund for my boys when they were born. I think we paid 20K and 21K. It covers all fees and tuition which would be about 50K today. We are paying another 12K or so out of pocket per year to house and feed the one currently in school. So if you want it all covered out of a 529B 100K is close to the right number if they go to a Texas school.

Mtn_Guide said:

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So I don't have any kids, yet. So maybe help me out here.

As I understand it you can change the beneficiary of a 529 once a year. What's to stop me (why would it be a bad idea) from opening an account well before I have a kid? Then if I don't have one I can go back to school or help pay for my nieces and nephews college?

Also, what are the restrictions on paying for room and board out the fund? Do they have to live in the dorms or can I rent them an apartment/house?

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You need a minor's SSN to open an account, so you could go ahead and open one for your niece or nephew, but it has to be dedicated to someone at all times.

Not true. We opened 529's for both myself and my wife 3 years before having kids. Just changed the beneficiaries from ourselves (in theory this could be for grad school) to our kids as each was born.

With the top 10% BS, I am planning on TCU for both my kids. I assume with subsidies its currently around $60k turnkey. Anyone with recent experience in regards TCU (or SMU)?

Iowaggie said:

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If possible, i suggest maxing out both spouses Roth ira before contributing to a 529 as I believe contributions may be withdrawn tax free for educational reasons.

However that shouldn't be only plan, but my opinion is the retirement should be taken care of first anyway.

(I believe that is correct)

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Just your basis can be withdrawn tax free. The earnings will be taxed at ordinary income but won't be subject to the early withdrawal penalty if used for higher education

That's a clever workaround.

That sounds.... unlikely

I have a 10th grader and a 6th grader in the DFW northern burbs, and we recently did a check on total cost of attendance (tuition, fees, room, board, etc) for a Texas HS kid at the major public schools in our general vicinity, i.e. A&M, OSU, OU, Arkansas, etc. We're in Plano West, and the Top 10% rule is driving a ton of smart kids to OSU, OU, and Arky. As long as the kid has a decent GPA and decent test scores to qualify for scholarships at the OOS schools designed to bring out-of-state tuition closer to in-state, they all basically ranged from high $20's to low $30's. I think A&M was $28k. OU was the most expensive with the highest bar for the types of scores needed for a better scholarship. I think it was closer to $35 if you had decent scores.

We did the old Texas Tomorrow Fund that was shut down the year my oldest was born (I signed up when she was a baby and paid $17k), which will cover 128 hours of tuition and fees at an in-state TX, or would currently reimburse at about $330/credit hour if went OOS or private (you get reimbursed the current average tuition/fee rate at a public TX senior university if you go private/OOS). With my youngest, I'm doing a 529 with the goal of having $60-70k, so basically half.

With both, I'll cover anything remaining with regular savings. My wife is an accountant that has been a stay-home-mom for 14 years, and our plan also includes her doing some seasonal tax work so that we won't actually really deplete anything.

Iowaggie said:

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If possible, i suggest maxing out both spouses Roth ira before contributing to a 529 as I believe contributions may be withdrawn tax free for educational reasons.

However that shouldn't be only plan, but my opinion is the retirement should be taken care of first anyway.

(I believe that is correct)

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This is how we saved for college, but ended up using a savings account for both kids.

Never underestimate their ability to overlook an opportunity. Exhibit A: Drew Brees.

anyone have any thoughts on the above mentioned TCU or SMU costs?

From what I've seen, TCU is about $60k/yr total cost to attend but I think that is before scholarships/aid.

I guess it depends on when/where your kids will go to school. Rule of thumb today is $25k/yr public,$50k/yr private in today's dollars with education expenses inflating @ 5% per year (although slowing recently). There is some risk to overfunding a 529 since non-qualified withdrawals are income taxable and penalized 10% (the earnings, not principal).

Side question, but why is the 10% rule driving smart kids out of state? Why would an Ag consider sending their kid to TCU/SMU instead of A&M and blame the 10% rule?

disclaimer: I've been out of Texas since 2005 so just looking for info, not slamming anyone

Because as it stands now my son is in the top 13% in a very very competitive suburban district (think HP or Southlake). Will be taking SAT next year, but from what I read the writing is on the wall. TCU or SMU will offer $$ making it only slightly higher than a public school and A&M will offer the Blinn Team. Nothing wrong with that option, but I seriously doubt he would consider it.

Geez, that many take up those spots that your kid won't make it in to A&M outright?

My daughter is only 8 but wants to go to A&M. We live in Minnetonka, MN and the school is very competitive (best public district in the state). Wonder if out of state is just as difficult.

Pahdz said:

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Geez, that many take up those spots that your kid won't make it in to A&M outright?

My daughter is only 8 but wants to go to A&M. We live in Minnetonka, MN and the school is very competitive (best public district in the state). Wonder if out of state is just as difficult.

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It's even more difficult for out of state.

That's pretty ridiculous. The 10% rule does not apply to out of state applicants either does it?