By Maddie
The cost of college has been all over the news lately. Perhaps it has to do with it being election season…but maybe not. I really don’t think anyone can deny the skyrocketing costs of higher education.
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| He's only four -- but saving for college is on my mind |
My husband and I both have bachelor’s degrees. I went to a community college, spent one year at a private college, and then finished up at a state university -- all over the course of about five and a half years.
My husband attended a private college for the entire six and a half years it took him to get his undergrad degree. My parents had a 529 plan for me that they paid for starting when I was just a baby. They paid cash out of pocket to cover what the plan would not for my year at the private school.
My last semester of state school was no longer covered by the 529, so they generously paid cash for that as well. I graduated from college with 0 student loan debt.
My husband’s parents did not have college savings for him.They chose to let him finance his education through scholarships, grants, and loans. He escaped the first few years of school with very minimal loan debt,using mostly grant and scholarship money. But when he changed his degree several times and suffered the loss of his dad, his momentum slowed and his grades dropped. This caused him to lose scholarship money and have to take on more student loans.
He graduated with about $70,000 in student loan debt. About 1/3 is in subsidized Stafford loans. The rest is in unsubsidized Staffords and private loans. We pay about $450 per month in loan payments.
So the question is, which side is right? Those who think parents should finance the cost of a child’s higher ed, or those who think the child should be responsible? There’s no clear cut answer. In an ideal world, I think parents should save for a child’s college. I also think parents should push their children towards the least expensive opportunities, i.e. community college or in-state public schools. Perhaps if the child insists on a more expensive option, they should find a way to pay the difference between what mom and dad have saved, and the actual cost of tuition. This could be accomplished through scholarships, or holding a job while in school.
However, my plan does not account for kids who want to go a more specialized route. I live in Florida, and I can think of so many specialized colleges nearby. We have Embry-Riddle Aeronautical University, Ringling College of Art and Design, and Art Institute -- just to name a few. Should parents be expected to finance these as well? Ringling can run upwards of $200,000 for just tuition. Again, I’m not sure.
I only have one four-year-old child so far (and a baby due to make her debut in January). My husband and I, at ages 26 and (almost) 30, have yet to start a college savings for our son. While we make a decent income for a three-person family, it’s not enough to put a large sum aside each month (especially considering those$450/month loan payments on my husband’s education).
To start a 529 plan at my son’s age would be prohibitively expensive. All we can hope at this point is that we start making much more money in the relatively near future, and are able to save. As for bigger families, such as blogger Katie’s, this situation is that much more complicated. She has this decision to make, times four kids!
So what do you think parents? Have you started saving? Have you and your spouse discussed what your approach will be when the time comes? What are your own student loan/debt situations?
You can contact Maddie by emailing her at maddie@mumblingmommy.com.
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3 comments:
I think this is a topic that every parents struggles with. And I think, like most issues that parents come across, the answer depends on the situation. My husband and I were both extremely lucky to have parents who paid for our college tuition. As a result, we were able to start our lives debt-free, which was a huge gift to us. It made things like buying cars, our first home, and starting our family much easier. We both want to do the same for our children, so we started college funds for both of our kids at birth. We contribute what we can. If college ends up costing more than what we have saved, then the difference will fall to our kids. Like you mentioned, we will make them aware of how much is saved for their schooling, so they can make informed choices about which schools would be more affordable. As far as the question goes of whether making kids pay for their own tuition results in them being more responsible, I think it can go both ways. From my own perspective, I did not take for granted that my parents paid for my college. I understood the tremendous gift they were giving me, and it was a motivating factor to do well. I did not want to be the one to waste the money they had worked hard for and sacrificed. But they also raised me to appreciate the idea that money must be EARNED and handled WISELY. So by the time I went to college, I already understood, and though I did not have to be responsible for my own tuition, those lessons carried over into my adult life. I understood that because my parents were responsible with their money, they were able to help me. My husband and I want to do the same for our kids, so we are already teaching them about financial responsibility, even at their young ages. And as long as we can continue contributing to their college funds, we will. But I also don't feel it is a parent's obligation to pay for college. Parents must make the decision that are right for their families and their own financial situations.
I think that parents should do the best they can to help their kids finance a college education -- whether that be savings or parent loans, etc. That does not mean they should pay ALL of it if they simply cannot afford it. The cost should be a discussion early in a high school career so that students are aware of their limitations, or the need for things like scholarships. Inexpensive routes like state schools and community colleges should definitely be part of that discussion too! I paid my way through a state school by taking loans and working and it was HARD to do both. I hope to help my kids as much as I can -- but know that they will likely need to step in and participate in financing it too.
My blog will be posted tomorrow (I think?) regarding this similar topic. Both my husband and I pay for our own education. And with the daunting future of having three children in college at the same time, paying for their education simply isn't a possibility. If we can help, we will but there's a very real possibility that we won't be able to.
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