College costs

[Bullshot]

Realizing there are MANY variables, just trying to get a sense for what is a good average target balance in 529 plans for out of state college tuition 4 to 6 years out from now. Looking for real world responses to this problem - what are people paying? I have two kids, very good students, non-athletes, who likely will go out of state to a 4-year public university. We have saved a modest amount for each child so far and feel extremely blessed to have been able to do that, but suspect we are well below what is "recommended" by the "experts". Based on our combined family income, we may not be eligible for a great deal of needs-based support (even though cost of living in our region is at the upper end of the spectrum). The general internet is not confidence inspiring (all over the map) and people I know are so damn tight lipped these days with their salary, debt, expenses , etc in order to perpetuate their facebook "best life" image.... hard to get the straight skinny on what is happening to real people in real life.

 

[Dakota79]

This isn't much help but trade school is where I would be having my kids looking at compared to a four year degree.

 

[Addicting]

0 dollars! Military pays for it or they learn the value of paying attention as it’s coming out of their pocket.

From my experience, Kids with no vested physical/financial interest in their education don’t do near as well as kids who fund their own way.

 

[RemingtonRules]

Don’t forget housing cost.

 

[JLS]

Don’t forget housing cost.

This will be the higher part of their education cost.

We are chipping in about 25%-30% of the yearly costs. A student can easily work their way through college with a little bit of help.

 

[Bigjay73]

This isn't much help but trade school is where I would be having my kids looking at compared to a four year degree.

If an 18yo started in the apprenticeship for my trade this year, they'd be making over $90000 a year after they graduate from the apprenticeship in 5 years as a 23 yo. No student loans, making decent money the whole time. Amazes me that so many overlook the opportunities available to them outside of an office settimg

 

[SFC B]

Don’t forget housing cost.

^^^^THIS is a huge variable based on location of the school. For instance, my son went to Indiana (NOT out of state as I was still active duty when he started) and once he was out of the dorms he split a 4 bedroom town house with 3 other guys. Total cost per month was about 4-450. A friends son went to CU Boulder and in a similar split but a 3 bed house he paid almost 2k a month. OUCH!!

Indiana (which is NOT expensive as schools go) would be $36k a year just for tuition for an out of state student CURRENTLY.

May I ask why they are going out of state? Do they have very specific plans? Had both of my kids college expenses not been paid by my GI Bill and VA entitlements we would have had a serious discussions because going into debt for your kids college is a HORRIBLE idea. Not a great idea for them either.

 

[220yotekiller]

Ok so I graduated from college a few years ago. I went to a community college for diesel tech and then I got my welding certificate. I got both degrees with minimum out of pocket cash by getting pell grants and scholarships. No debt at all. I would make my senior apply for every scholarship that they are eligible for, if you get enough if can go along way towards paying for college. Regardless of how you pay for it make sure the kid has skin in the game.

 

[Pucky Freak]

My kids are young, so I have a while to save. My wife and I contribute to in-state Coverdell accounts for all three of them. We looked up the current tuition costs for 2 years of community college + 2 years in-state university, and then use a multiplier to account for annual tuition inflation, and come up with a grand total cost. We then use an investment calculator to see how much money per month we need to set aside compounded by our investment growth to slightly exceed the total tuition bills.

The second part of the plan is talking with all our kids, beginning in their early teens, about education of value. Private schools and out of state schools would only be considered if: A. There was a plan for total cost to be paid in cash, and
B. There was a solid justification for why we should pay for such an education when cheaper in-state options might be just as quality of an education.

Who knows how long the current job market will last, but today is a terrible time to be a student, and a fantastic time to be a worker with an in-demand skill in an in-demand area. Three months of CDL school could immediately land you a $85k job. Pays to think outside the box of the traditional education and career progression.

 

[Nick87]

If an 18yo started in the apprenticeship for my trade this year, they'd be making over $90000 a year after they graduate from the apprenticeship in 5 years as a 23 yo. No student loans, making decent money the whole time. Amazes me that so many overlook the opportunities available to them outside of an office settimg

Yup

 

[Willy Dee]

I teach high school seniors, so I am constantly advising them about their respective next step. I also have children to plan for. A few observations:
1. Out of state will roughly double your cost. This expense makes no sense for a bachelor's.
2. Many professions encourage graduate studies since most bachelors' degrees amount to what a high school diploma used to be (basic literacy). Factor graduate school costs.
3. Most four year degrees and high GPAs are very easy to come by as long as checks are written. Engineering schools are often the exception.
4. The military has some great advantages.It pays for school and instills discipline that contributes to academic success. I made a deal with my kids that if they join the military and finish college via the GI bill, I will give them the equivalent amount of tuition and room and board of a four year degree to apply to buying a house or to invest. We were fortunate to have been able to start saving early and have college costs covered.
5. I grew up in construction and have a profound respect for the trades. Trade school is more valuable than ever before.
6. Many college campuses are consumed by Covid protocol and social angst. This has a negative impact on education. Online learning is a joke.
7. Kids and parents are being crippled with loans. To saddle an 18 year old with substantial debt is a failure of parenting. Kids and parents can always work more and save more. Going part time and paying in full is better than going full-time on loans.
8. Two years of community college and finishing at an in state school is a great option.
9. Pay for their car and insurance. This give you some leverage if they start screwing around.
10. Many private and out of state schools will offer generous scholarships to get you in the door. These scholarships rarely last four years.
11. Good luck.

 

[Fj605]

It can be much less than you think. Some states offer adjacent state discounts. Smaller public schools typically have lower tuition and housing costs.

 

[WNC2500]

@Bullshot feel free to PM. We are in NC, and I have two in college. Actually, two in private. Surprisingly, nowadays, private institutions really have more money for scholarships than one would think. We are blown away by scholarships available. We made it a game and of course researched the scholarships ourselves (along with daughters), but somewhat incentivized them for winning different scholarships. Be glad to chat more if you would like. What state are you in??

 

[Addicting]

To saddle an 18 year old with substantial debt is a failure of parenting. Kids and parents can always work more and save more.

To not advise them on the repercussions of their “Wants” is a failure. Letting them learn from their stubborn mistakes is part of growing up.
I wasn’t given anything but advice and room and board. I had had to figure it out. I had to work, attend military drills, and pay my tuition as I went. I was successful albeit it took me a year longer than most.

 

[wolfpup]

I teach high school seniors, so I am constantly advising them about their respective next step. I also have children to plan for. A few observations:
1. Out of state will roughly double your cost. This expense makes no sense for a bachelor's.
2. Many professions encourage graduate studies since most bachelors' degrees amount to what a high school diploma used to be (basic literacy). Factor graduate school costs.
3. Most four year degrees and high GPAs are very easy to come by as long as checks are written. Engineering schools are often the exception.
4. The military has some great advantages.It pays for school and instills discipline that contributes to academic success. I made a deal with my kids that if they join the military and finish college via the GI bill, I will give them the equivalent amount of tuition and room and board of a four year degree to apply to buying a house or to invest. We were fortunate to have been able to start saving early and have college costs covered.
5. I grew up in construction and have a profound respect for the trades. Trade school is more valuable than ever before.
6. Many college campuses are consumed by Covid protocol and social angst. This has a negative impact on education. Online learning is a joke.
7. Kids and parents are being crippled with loans. To saddle an 18 year old with substantial debt is a failure of parenting. Kids and parents can always work more and save more. Going part time and paying in full is better than going full-time on loans.
8. Two years of community college and finishing at an in state school is a great option.
9. Pay for their car and insurance. This give you some leverage if they start screwing around.
10. Many private and out of state schools will offer generous scholarships to get you in the door. These scholarships rarely last four years.
11. Good luck.

Thank God someone is teaching high schoolers this!

 

[OntarioHunter]

Consider Canada! Govt heavily subsidizes education up here. I finished MA and PhD with a total student loan debt of less than $25K. Mind you, my MA was tuition free because my wife was employed at that university (but it was a taxable benefit which went on our income at tax time). I only lived away from home during the first year of PhD. And I worked occasionally, though mostly devoted to getting good grades. Most of the student loans were not needed and thrown on the mortgage because student loans were a better debt to have over our head.

Anyway, look into it and I think you may be pleasantly surprised. Rent in Greater Toronto Area and Vancouver will be horrible, especially right now, but most of the other university towns not so bad. I rented a bedroom in an older couple's home when doing my PhD in Winnipeg and it was very reasonable. Also keep in mind when pricing nonresident tuition you can knock of 25% for exchange rate. Winnipeg is actually a great place to live in my opinion. Very easy to navigate, all the amenities (hospitals, two universities, countless malls, ballet, symphony, etc.), and great hunting and fishing almost on the doorstep. Saskatoon even better. Obtaining financial aid was surprisingly easy. Others in my program at U of M from the US had little difficulty getting graduate fellowships. And I can think of two who definitely did not deserve it!

If any of your kids are considering medicine, this is the place for that education. Govt funding is readily available and often full ride ... with the condition that the student remain in Canada for a fixed number of years after completion. Now wouldn't it be just awful to have a family member stuck living up here who can legally take you moose and elk hunting without the cost of a guide? Yeah, that would work.

 

[texwest44]

I work for the state of MT in career/education development for k-12 students and some adults. Average price will depend on the state, but most of the non-resident tuition I see in "popular" states for young people is above 20k-25k per year, some pushing towards 40k per year. And those are public universities.

There are reasons why I push apprenticeships so hard on a lot of young people. The university experience is becoming more expensive and less useful by the day.

https://portal.mtcis.intocareers.org

The above link is Montana's career information system, and the costs of US accredited colleges and universities are listed there. Logging in is kind of a mess, but there's a public login I give to new/brief users just to check things out. Username is phony.student, password is PhonyStudent1.

Once you log in, hover over the Education tab on the red bar at the top of the page. A dropdown box will appear; under "Where Can I Study?", click on US Colleges and Universities. From there, click a state, and the accredited schools in that state will appear. Select a school you might be interested in, and click on it. When you arrive on that school's information page, there's a link in the left-side gray box that says "Costs". Click that bad boy, and it'll tell you the current tuition price for resident and non-resident students.

Every school in America is there, feel free to peruse em and see if any fit your budget. Let me know if you have questions, this is literally my day job lol.

 

[SD_Prairie_Goat]

Depends very heavily on school selected and choices made.

At South Dakota State for example:

Going cheapest options, renting text books, lowest food plan, cheapest dorm etc. $17.5k/year

Going most expensive, buying text books from SDSU book store, highest meal plan, nicest dorm, etc. $25k/year


Now you want to go to Iowa State instead? Most of those values are going up 25%, so for me the biggest thing is finding a high value school for the dollar.


MIT will give a hell of an education, but is it worth triple the cost that a small state school can provide? I'd say no, but I also couldn't get into MIT even if I could afford it haha

 

[Fj605]

Now you want to go to Iowa State instead? Most of those values are going up 25%, so for me the biggest thing is finding a high value school for the dollar.

Being from Iowa, ISU was my first choice school until I looked at the cost. I did a little digging and found South Dakota School of Mines in Rapid City for half the price.

 

[SD_Prairie_Goat]

Being from Iowa, ISU was my first choice school until I looked at the cost. I did a little digging and found South Dakota School of Mines in Rapid City for half the price.

You're not the only one. at SDSU most students were actually from MN because it was so much more affordable than U of M. Now that has been rapidly changing, SDSU keeps driving up the price. Not a fan of what is happening there lately...