Why pay for kids college?

[JMart76]

Having served in the military I have my GI Bill which I transferred to my 4 kids. I got my Bachelors degree so they can have the remaining balance. They will more than likely have access to my Hazelwood money as well. I may open up a college fund to offset their costs if need be but I don’t plan on 💯 paying for all their higher educational costs. My parents offered to pay for my associates degree but I messed that up. I’ll offer some but not all assistance as I feel the work in gaining their education will make it more meaningful to them.

[slayer]

We paid for their Bachelors (twin boys) degree. I didn't want them fighting to pay back a bunch of money that early in life. We are also paying for their first year of Masters. Then they will fund the remaining two years. In my opinion, it is OUR obligation to make sure our kids aren't a blight on society. They are hard working, tax paying individuals with something to contribute.

[tdwinklr]

We were able to pay our kids college. We told them if they kept up good grades they were taken care of. Both graduated with honors and I was more than happy to get them started in life without debt. Both have very successful careers and would do it again . IMO, no reason not to help out if possible. YMMV.

Same here. We started both of our kids when they were still in elementary school with Texas Guaranteed Tuition Plans, much cheaper then than when they graduated HS. One of them used it all at UT of Arlington, the other used only part of his to get Paramedic training. They are both very successful now, something I can be proud of, getting them started in the right direction.

[outlook8]

See below from my financial advisor in January...no way a kid working an entry level college job is paying their way through college these days, and certainly not in the future either...

I can develop a more detailed education report for your children at a later date, but from the back of a napkin perspective I’d say:

EDUCATION ASSUMPTIONS:
• Assume NO grants or scholarships
• Assume IN STATE tuition (I picked Texas A&M University for this test case)
• Assume that Education Expenses grow at an approximate 4% rate (which is a bit higher than the last ten years)
• Assume 4 years of tuition starting in 2040 and ending in 2043
• In today’s dollars, the approximate current costs are:
o Tuition --- $12,700
o Books --- $1,200
o Room & Board --- $11,400
o Other --- $6,000
TOTAL --- $31,300
• Thus, you can expect the first year of college to approximately cost $63,000 when it begins in 2040; with a total estimated costs of $270,000 by the time it ends.
EDUCATION FUNDING:
• Assume your education savings grow at a rate of 7.32% (growth & income model projection)
• To fully fund the education expense – you would need to save approximately $500 per month per child

That all being said --- I think a good starting point for each child might be $250 / month per child. This will allow for grants, scholarships, and others to contribute if they wish and will allow for lump sums to be invested at different intervals to make up the shortfall.

[Pedernal]

See below from my financial advisor in January...no way a kid working an entry level college job is paying their way through college these days, and certainly not in the future either...

I can develop a more detailed education report for your children at a later date, but from the back of a napkin perspective I’d say:

EDUCATION ASSUMPTIONS:
• Assume NO grants or scholarships
• Assume IN STATE tuition (I picked Texas A&M University for this test case)
• Assume that Education Expenses grow at an approximate 4% rate (which is a bit higher than the last ten years)
• Assume 4 years of tuition starting in 2040 and ending in 2043
• In today’s dollars, the approximate current costs are:
o Tuition --- $12,700
o Books --- $1,200
o Room & Board --- $11,400
o Other --- $6,000
TOTAL --- $31,300
• Thus, you can expect the first year of college to approximately cost $63,000 when it begins in 2040; with a total estimated costs of $270,000 by the time it ends.
EDUCATION FUNDING:
• Assume your education savings grow at a rate of 7.32% (growth & income model projection)
• To fully fund the education expense – you would need to save approximately $500 per month per child

That all being said --- I think a good starting point for each child might be $250 / month per child. This will allow for grants, scholarships, and others to contribute if they wish and will allow for lump sums to be invested at different intervals to make up the shortfall.

this is great info thanks for sharing!

[outlook8]

this is great info thanks for sharing!

I think it's more scary than great, especially considering I have TWINS!

[Hoggslayer]

I think it's more scary than great, especially considering I have TWINS!

There is always barber college. You could have them draw straws.

[WRasco]

College is not free or cheap.

We told them we would pay for the first pass of each class. If they failed a class they had to pay to retake it. That only happened once for each kid. (Maybe twice for my son, but like his dad he is hard headed.)
We were happy to get them started in life without debt. Glad we were able to do this but I could have bought me a Ford GT with the money I sent the colleges. If the government decided to write off student loans that was a bad decision on our part.

Both my kids graduated, TAM and SFA, are married and contributing to the free society tax fund.

Mission accomplished.
I guess.

[myway]

I think it's more scary than great, especially considering I have TWINS!

Pretty awesome that you are planning that far ahead as you should be (possibly out of necessity) with twins. I personally thought oh I have plenty of time to worry about that later as my daughter now enters her junior year in college that didn't happen.. Man it goes fast. I am paying out of pocket and its doable but it sure would have been better to plan ahead as you are.
Every kid is different along with every circumstance and college is not for everyone but as long as mine continues to make good grades and do well I hope to give her every opportunity I can.
I absolutely agree with trade school ,and the military as a path for those that do not want to go to college but for those with daughters regardless of the current climate its foolish to think they have the same opportunities without a degree.
I also think we all know a self made business guy/owner but I bet most of them would tell you they wish they were more proficient in high level business, marketing, or finance. You can always hire people but it sure would make it easier to know more.
I personally would/did party my way right out of school and I have done okay but I sure wish I had continued my education.

[Mike D]

Why pay for kids college?

My wife and I paid for her college with student loans.

We made the decision that we would pay our kids’ 4 years of college. Anything beyond that was on them.

We sacrificed and got debt free and paid cash for all 3 kid’s college.

But…..it wasn’t without terms. Like another poster mentioned if they failed, the retake was on their dime. No out of state or major university colleges. (2) of them went to community colleges and (1) went to specialized trade school. All 3 of them are successful adults and have never had to ask us for money since they got out of school. Their degrees have gotten them the same jobs that their coworkers with high $$ degrees from big or out of state colleges have.

The difference is they don’t have any student loan debt and neither do we.


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[WilliamL]

My wife and I both had a small amount of student loans to deal with when we graduated. paid them off within a year or so. Both had professional degrees and it was worth the debt.

For my daughter, We did the 5 year plan with the Texas Tomorrow Fund, cost around 22K. She finished Texas A&M with honors in 4 years and now just finished her first year of pharmacy school, 4.0 gpa. Texas tomorrow fund still paying for pharmacy school (was a great investment). I will continue to cover her tuition moving forward and she pays for living expenses. We plan on her graduating from Pharmacy school debt free.

As others stated we had very clear expectations for her BSN degree, no liberal arts degrees were going to fly or out of state tuition. So far it is working out well. Very proud of her and will be happy to see her graduate from pharmacy school debt free.

[bbqfan5909]

Want to say that same Texas Tomorrow fund cost 68k now, if I read it right.

My wife and I both had a small amount of student loans to deal with when we graduated. paid them off within a year or so. Both had professional degrees and it was worth the debt.

For my daughter, We did the 5 year plan with the Texas Tomorrow Fund, cost around 22K. She finished Texas A&M with honors in 4 years and now just finished her first year of pharmacy school, 4.0 gpa. Texas tomorrow fund still paying for pharmacy school (was a great investment). I will continue to cover her tuition moving forward and she pays for living expenses. We plan on her graduating from Pharmacy school debt free.

As others stated we had very clear expectations for her BSN degree, no liberal arts degrees were going to fly or out of state tuition. So far it is working out well. Very proud of her and will be happy to see her graduate from pharmacy school debt free.

[buzzbait]

As long as I am capable, Ill provide anything to my family.

[locolobo]

I'll start out by saying I did not go to college. I'd had enough of school after 12 yrs. Lucked into a good job right outta high school and kept at it for 46 yrs. I was of the opinion that the college experience would mean more to them if they had to pay at least some of the cost. Keep 'em honest and work harder at it. Paid a few thou each semester for each one but the major part was on them. 3 kids in college, 3 BS degrees and the last one will start on her masters this fall.

[elhefe]

Paying for my daughter at A&M. My son will go to Baylor but his scholarship pays that. My youngest will get his paid for. My rules are 4 years and must maintain a 3.0. My daughter will graduate after just 3 years due to AP courses etc…. Same with my son.

My thought, give them an education with no debt and they are set.