Posted on 09/05/2012 7:27:46 AM PDT by detective
Since I had my son, I have often heard from family and friends that college is going to be extremely expensive, and it is best to start saving now. After much research I decided that I wouldn't put too much into a college fund.
This may be against the usual advice of saving for the future, but here are some sane reasons why parents should not pump too much money into their children's college funds.
1. A large college fund can lower financial aid.
(Excerpt) Read more at money.msn.com ...
That's the "Black Culture" for the past 3 generations....
darn..my gransons college fund has taken several good hits since we started it. its flat last time i looked but thats an improvement.
It is absurd for parents to save for a college education for their children while not saving for their own future. Trust me, you are doing a better favor by ensuring that you have your retirement together more than giving the kids a college education. Providing for the parents in their golden years is WAY more expensive than the college education.
Saving for college and putting the money you have saved in a specific fund for the child are two different things.
If you save in a 529 it will all be counted when calculating financial aid. If you have saved it in a Roth for example only a percentage will be counted and you can withdraw contributions without penalty from a Roth.
Yep. I’ve taken the stand,”If you can’t beat ‘em, join ‘em.”
It’s part of my “going galt” strategy. I can not only starve the beast, but when someone does throw it a scrap, I can take some of it away.
I made the mistake of paying for my own mortgage, putting two kids through college with my own money, and sustaining a debt-free existence with my income, living within our means.
Talk about not using "The System".....
Long time ago, at college entrance time, lots of Dads said to their sons,
“Son, go to the recruiting office and enlist! You’ll beat the draft & you’ll have GI Bill for college when you get out. Meanwhile you will have done a lot of growing up and have a much better idea of what you want out of your college education.”
Crazy, no?
agree..we are retired but money is not what it used to be. looking at starting another business but afraid to in this environment.
Earning money always reduces government assitance. This is a good thing. If you want to maximize financial aid ... poverty is the ticket.
The truth is ... you’re on your own. Save for college. Save for retirement. Save as if the government ain’t gonna be there to bail out your broke ass ... because, the likelihood is, they won’t.
SnakeDoc
The FAFSA calculation worksheets, which determine how much cash the family is expected to contribute, and thus determines how much financial aid the student is eligible for.
The WORST thing you could possibly do is have significant assets in the child's name. They will expect that ALL of it is to be used for tuition, and will adjust financial aid accordingly. If grandparents are thinking of kicking in for college, have them hold onto the money, and give it when needed.
One additional thing to be aware of: the equity in your home does not count in the calculation, so it's to your advantage to pay down your mortgage with your spare cash.
Also, the amount in your 401K doesn't get counted (but the current year's 401K contribution does), so it's good to put a lot into your 401K ahead of time.
“...If you are responsible and save you are screwed. If you are irresponsible and don’t save you are rewarded with free handouts from the taxpayers...”
Reparations are a reality. From Afirmative Action to this is the new American way.
I believe only 5.6% of the savings in a 529 plan count against financial aid as long as the 529 is in the name of a parent.
Get rid of the useless majors at public colleges. The public shouldn’t be paying for womyn’s studies and the like. Also, how much sociology and queer studies does a society need?
I’ve “Retired” 3 times, from 3 different companies, then started a Consulting Business on my own. Now, I do “Consulting” part-time, to supplement the income, and keep in the loop.
My son floundered for a year in local college even with a decent academic scholarship, then joined the Marines, did his 4 years and Iraq tours. Then got his degree with the GI Bill. Worked out well.
One: You want your Kid to be in Debt, with most likely a low paying job in this current economy.
Two: You want your Kid NOT to be debt free when they start life and to know the burdens of debt for a decade or two.
Three: You want them to learn how Student debt cannot be discharged like credit cards and how the government can hound them for years.
Yeah, Really Good Idea.
/Sarcasm OFF
good job papa. i’m not patient enuf to deal with this crowd on tis issue.
grad school is more important and can be free.
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