Please and thank you

[pebra]

Something's that really soared is the number of gorgeous schoolgirls and students.
They were further between when I was in school! I don't think I'd be able to get anything done if I were a student today.

[Kev m]

I have been funding college 529s for my grandchildren, and it feels like a losing battle.  My goal is to provide enough of a supplement to keep them out of college loan debt.

Here's the good news.

The numbers don't tell the whole story.

Avge costs per year (room/board/tuition) are currently around $20-30k state school, $30-40k mid level private, $50-60k top tier private.

BUT the privates will negotiate.

Part is based on strength of application, part on need. It helps to have multiple acceptances from other schools.

Basically you SHOULD be able to get private school costs closer to state levels.

But yeah, a tremendous amount of our money each month goes to 3 different 529 accounts and two large student loan servicers. And when I say tremendous I'm talking more than the mortgage (which is pretty darn big for the fourth house I've bought).

[Carlo DeSantis]

Here's the good news.

The numbers don't tell the whole story.

Avge costs per year (room/board/tuition) are currently around $20-30k state school, $30-40k mid level private, $50-60k top tier private.

BUT the privates will negotiate.

Part is based on strength of application, part on need. It helps to have multiple acceptances from other schools.

Basically you SHOULD be able to get private school costs closer to state levels.

But yeah, a tremendous amount of our money each month goes to 3 different 529 accounts and two large student loan servicers. And when I say tremendous I'm talking more than the mortgage (which is pretty darn big for the fourth house I've bought).

Though I have no first-hand experience, I am aware of the flexible nature of some costs/fees.  I admire your generation's dedication to bettering your kids' future.  It's sure harder (financially) than it used to be.

Best,

Carlo

[Sheepdog]

Perhaps the big problem with college costs is that we have created unrealistic goals for our young people. College and the professions that college graduates seek are not for everyone. However, we tell our kids that their lives depend on that sheepskin, so we end up with a bunch of educated people who are unemployable. Meantime, demand for slots in a freshman class are so coveted that prices soar. America still needs machinists, plumbers, mechanics, welders, and cooks, too. So much so, that these professions often pay as much or more than teachers, nurses, or social workers. Our secondary education problem, like most modern problems, is about unrealistic expectations...

As for the good old days...well let's just say we all have good memories that populate our past. I believe that these moments that I'm living right now will eventually be among them.

[Kev m]

Perhaps the big problem with college costs is that we have created unrealistic goals for our young people. College and the professions that college graduates seek are not for everyone. However, we tell our kids that their lives depend on that sheepskin, so we end up with a bunch of educated people who are unemployable. Meantime, demand for slots in a freshman class are so coveted that prices soar. America still needs machinists, plumbers, mechanics, welders, and cooks, too. So much so, that these professions often pay as much or more than teachers, nurses, or social workers. Our secondary education problem, like most modern problems, is about unrealistic expectations...

As for the good old days...well let's just say we all have good memories that populate our past. I believe that these moments that I'm living right now will eventually be among them.

I agree that we undersell and undervalue trades. Though I do see that starting to change at the high school level at least where my eldest is currently attending.

But I don't concur that the reason for soaring college tuition has anything to do with supply and demand. Colleges aren't struggling to keep up with the applicants and many of their costs have nothing to do with number of students (assuming lecture halls are large enough it doesn't matter if there are 50, 100, 200, or 300 students in the lecture). Certainly most students have options of what schools they will attend and I don't see universities struggling to build more housing or expand to meet the demand.

I think many univeristies are simply in the middle of a money grab. At the end of the day they don't really have anyone to answer to in terms of product. They aren't increasing tuition to cover the costs of better "materials" or more professionals to improve education. They are simply taking as much as they can from the market which is supported by student loans and dreams (parents hoping for a better future for their kids).

Many of the top universities have ridiculous endowments. Schools like Princeton for example who could make the best case for $60k/year tuition guarantee that ANY accepted student will graduate without student loan debt. They adjust their price, award grants, provide work/study arrangements etc, but largely they use their endowments.

The only form of "competition" you're seeing in the market is that the privates will lower tuition to try and keep an accepted student from going elsewhere or to a state school. So the state tuition level becomes the limiting factor. Still, if that's the case, what about all the students that wind up paying the full boat on tuition ($40k or $50k or $60k instead of $30k)? Should college tuition (paid with government subsidized student loans) really become the equivalent of buying a car?

And though we're putting money away like a squirrel burying nuts on a December morning, how will that effect OUR negotions in the long run. We've got enough cash to put the eldest through a 4 year state school already, but what if she tries to go private? Will the private not negotiate with us because of the cash? (I'm being told it's not black and white in short). So in the long run do I screw my kids if I put $100k or $200k away for their education?

It's an ugly situation that I suspect will get worse before it gets better.

[Sheepdog]

I'm putting money away for my granddaughter's future. Where it will do the most good will reveal itself in time...

[Kev m]

I'm putting money away for my granddaughter's future. Where it will do the most good will reveal itself in time...

That's a good point.

When tuition meets or exceeds the cost of a house, what would benefit someone more?