College - Paying for it - ??

[ChileMass]

When I went to school (back in the 70s), state schools were considered pretty good and private colleges were sorta out of my reach. I could work a summer job and afford to pay for it myself and so it was very straightforward. Nowadays more kids are doing better in high school, a higher % want to go to a private college, the competition to get in is fierce and paying for it looks like it could put me in the poorhouse (or at least delay my retirement significantly).

My older daughter is in high school and I have not really started the process of looking at colleges or financial programs. My wife says, "Oh we'll just get loans like everyone esle". Is this the primary way it's done? Any programs out there that anyone has used that you'd recommend? How should I get started?

My older daughter is very artsy and does especially well in languages. She's not going to be a corporate killer or trial lawyer or anything like that. Matter of fact - with all due respect - she'll probably eventually become a stay at home Mom like her own Mom. For that reason, I am hesitant to have her pursue an elite school because it's just not going to make a big difference on her career. I realize that argument may not make sense to everyone, but funds are limited (I have a second daughter coming right behind), and I am a state college grad, and I did just fine, thanks. I'll admit an elite college is nice, but college is largely what you make of it, IMHO. I am looking for recommendations for colleges in the Northeast with good education, language or art programs. Preferably away from the big cities.

Thanks - !!!!! I hope this will spark a discussion.......

 

[nelsapbm]

Is she a good student? Maybe she could qualify for some merit based scholarships?
State schools are a good option. I went to one (UVM) and have done pretty well myself

 

[thetrailboss]

Chile--

Don't be deterred by the "sticker price" of the schools. A lot of places, like my Alma Mater (Middlebury), have a high price, BUT have a lot of aid and grants that make a difference. My last year, my parents had to pay for me and my brother who was at UVM. Who was cheaper? Me. The school stepped up and gave my folks a lot of aid. We are really grateful.

Last year my sister got into Bates. My folks were happy with the initial package. When my Dad lost his job, they called Bates and they were able to give them more money.

If she is smart, she can go a long way. Only problem: the female pool at these schools is SO competitive now....there are more girls applying than guys and it is a problem.

Don't be afraid to PM for more specifics and other advice.

 

[Dr Skimeister]

My oldest daughter is a freshman in college. As we started her college search, I too assumed she/we would be better off looking at state schools as far as the costs involved. I attended a seminar at her high school about paying for college and got turned on to an organization that opened my eyes to the massive funding available to students attending private colleges. The organization I eventually developed a relationship with not just looked at the college funding aspect of it, but provided me with financial planning that provides that kids attending college does NOT take away from other financial realities such as retirement.

If you like the link to the company I deal with, PM me.

Good luck.

 

[hammer]

I thought I saw an article in the Boston Globe about the importance of a degree from an elite school...can't find the reference.

I went into the military out of college so I can't speak for entry-level jobs, but in my experience after a few years out of college it doesn't matter where you went to school. I work in IT and I've seen people who didn't go to a top school or get top grades but are still technically sharp.

My oldest will be going into 9th Grade this fall and is interested in pursuing engineering, and I'm already wondering how we will be able to pay for college...we have some $$ set aside in education-related accounts but I don't want to go into debt.

One question that I have for everyone...if you are making a reasonable living by New England standards, does that mean that you are too rich to qualify for student aid?

 

[ski_resort_observer]

The best single source of college financial aid is your local HS Guidance department. In addition to federal programs like Stafford loans and a 529 savings account there are numerous state and even local programs that you could apply for. The Guidance department has info on all of it.

Mt daughter is a sophomore in college and my son who is a HS senior has been accepted at Johnson State but is deferring college for a year so he can be a ski bum at Jackson Hole. He and the wife are flying out there this Saturday to check on housing and a summer job so he is set up once winter arrives. According to my wife his desire to be a ski bum at JH is all my fault......

IMHO it's not the college that determines success but how the student uses the experience. UVM is more like a big private school than a state college when considering the cost and the fact that there are more out of state kids than Vermonters attending. A real state school like the U. of Wyoming cost 1/4 of what UVM costs, even for out of staters. Can you get as good of an education at UW as UVM, I believe you can. My wife went to UVM, I went to a Vermont private college and then UW for a grad degree.

 

[ctenidae]

90% of school is the connections you make while there. 80% is how much you put into it. 40% is the quality of the professors. Yes, I failed statistics.

Loans are a fact of college life, pretty much. You fill out the FAFSA, sign in blood, and wait. Schools also tend to have a lot of scholarship money no one knows about (It's good to be able to say "We have $15 quadrillion in scholarship finds!" even if they never give it out.) so do some research on the schools, and really dig into the scholarship office.

There are also often weird grants, usually smallish, like $500-$1000, given by people for weird things. I can imagine there being a few available for small, rural private schools in New England for a wide variety of things. Find them. Talk to your local Chamber of Commerce, and the County Chamber, and the State Chamber. If your daughter wants to study art, talk to the state art museum people.

Grab a six pack, a pen, and a piece of paper. Start drinking, and write down every single random-assed thing that might in some way, any way, be connected to your daughter's interests. There's probably a grant available for it.

 

[Greg]

I'm glad I started a 529 for my daughters already and they are only 1 and 4 years old.

 

[ChileMass]

.......Grab a six pack, a pen, and a piece of paper. Start drinking, and write down every single random-assed thing that might in some way, any way, be connected to your daughter's interests. There's probably a grant available for it.

This was EXACTLY the type of help I was looking for.......

 

[hammer]

On a related subject, what is going on with college admissions nowadays?

http://www.boston.com/news/education/higher/articles/2007/04/12/suddenly_many_colleges_are_elite/

 

[ski_resort_observer]

I'm glad I started a 529 for my daughters already and they are only 1 and 4 years old.

Smart..very smart thing to do. If they decide not to go to college you can use all that money to buy a ski resort... :wink:

 

[wintersyndrome]

If you dont have a 529 plan or coverdell IRA there are also other options

Your life insurance plan (if it is whole or universal) may have a substantial cash value that can be used to supplement a college education. and taking out a policy loan is going to be less expensive to payoff as opposed to student loan because you are borrowing from yourself at alower intrest rate and if it doesnt get paid off then that amount is just subtracted from the face amount on the claim. Also if you have a personal IRA or 401(k) plan from your employer, check the details of our plan to see if an early withdrawal from those plans are exempt from the 10% penalty if the withdrawal is used for education purposes (some are some aren't). If your older than 59-1/2 (not that you are but im just saying "IF" ) there will be no penalty for "early-withdrawal" from your IRA or 401(k).

Good luck, have you explained to your daughter how much more she will value her education if she pays for half?

Have you spoken with a financial planner yet?

PS Umass are good schools with fine Lib Arts programs, plus Amherst (where my cousin started her education and is now a Psychologist) is close enough to N. Addams, from what i know that is a very "artsy" town far from the cities and really has a fantastic supprtive arts community.

 

[Vortex]

I have college savings progam also I think it has a different number in NH, but it will never be enough. My son has another 5 years and my daughter 7. I agree in your feelings about a state vs private schools and its importance Bill. I could have gone anywhere and got a degree to become a salesman. lol

My rose colored glasses got me to spend 3 times the money and get a similar education. I was going to be on the Race (ski) team in college. I bailed before the seasons 1st race.


I would have walked out of a state school with no post college Debt instead of 10 years of 300 plus a month, but never would have met my wife.

For more useless info send me a pm.

 

[thetrailboss]

I started a 529 plan for myself two or three years ago at the advice of my financial advisor. It is amazing how a little bit here and a little bit there makes a huge difference.

 

[hammer]

I opened up UTMA accounts for each of my kids before they had the 529s and then opened up 529s. Also have some old savings bonds around that I bought while in the military...hopefully there will still be a tax break on those.

College costs are insane nowadays...I remember tuition being just over $7K for a private school when I was a freshman.

 

[Dr Skimeister]

Private schools typically use a different standard in determining a student's financial aid eligability than do state-funded colleges. The state schools are forced to be more intrusive with the student's and the student's parent's financial picture in financial aid decisions. A financial advisor that is well versed in the college aid process can advise of ways that the financial picture that a college sees, particularly a private college that does not require CSS/PROFILE documentation, is touched up so that the student qualifies for an adequate amount of financial aid to allow him or her to attend the institution.

It is also essential to understand that financial aid determinations made by colleges are negotiable, and that it is possible to leverage one school's award against another's. Hence there can be value to applying to a school that the student may not really want to attend but is known to award generous financial aid so that he/she has that award promise as a bargining chip to use in discussions with a more desirable school.

 

[nelsapbm]

Don't rule out Canadian colleges. From what I understand, they can be quite a bargain compared to US schools. My boss' daughter goes to McGill in Montreal and my bf's cousin went to Dalhousie in Nova Scotia. Both are great schools.

 

[SKIQUATTRO]

I also starteded the 529's for my 2 girls, they started the day they were born. Isnt it a bit premature to say that she'll be a "stay at home mom anyway" thats one of the toughest-non-paid jobs around...a great education is great, she could always have an at-home business she can do if she does become a stay at home mom in another 15 years....I'd leave that decision up to her, alot happens when they go away to school, they find themselves and she just might surprise you becoming a corporate powerhouse for a major ski conglom!!!!!, i just dont think its fair to pre-destin her...

 

[ChileMass]

I also starteded the 529's for my 2 girls, they started the day they were born. Isnt it a bit premature to say that she'll be a "stay at home mom anyway" thats one of the toughest-non-paid jobs around...a great education is great, she could always have an at-home business she can do if she does become a stay at home mom in another 15 years....I'd leave that decision up to her, alot happens when they go away to school, they find themselves and she just might surprise you becoming a corporate powerhouse for a major ski conglom!!!!!, i just dont think its fair to pre-destin her...

I hear you, I hear you. See my disclaimer in my original post. Who knows what she will wind up doing, but I know my kid. She will be a small-town teacher or something like that if I know her at all (nothing wrong with that, of course). My point is that given what a private school costs, it seems an unwise use of scarce funds to try to send her to Brown or St. Lawrence or Duke which cost over $35K per year. I think she'd do better closer to home in a mellower environment, anyway. Just looking for who went where and impressions of various schools......

 

[hammer]

I don't know if this sounds cheap or harsh, but unless she has very specific career goals, what is wrong with going to the closest state school, living at home, and then transferring to a more elite school later?

If I were in a similar situation, I'd be looking at UMass Lowell...close enough to live at home but better than a community college.