Paying for College?

[tryan]

Heard from a friend "you can borrow for college; but you can't borrow for retirement".

We'll be taking advantage of the Sally Mae low interest loans.

[Mickslick]

Quote:

Originally Posted by youbet So you're saying that if parents have sound economic plans that don't put them in debt or risk their retirement security, then it's fine to send Sam or Sally to private school?

Good question, I think it always a potential risky proposition to "indulge" a child just because one can afford it. And yes, college kids are still yet to be fully formed adults that can be ruined long term by not learning and experiencing self reliance and positive character development. So maybe it makes sense to pay for a full ride private school deal for a kid if you can afford it, maybe not - how's that for a wishy washy answer?

[LOL!]

Wife returns from a financial aid meeting at the local HS. She says the speaker was the financial aid officer from the local community college. He erroneously said that 529 plan and UGMA assets are not reported on the FAFSA. He was asked twice more about that and he maintained that 529 plan assets were not reportable on the FAFSA. A simple search says otherwise. If the financial aid officers don't know jack, who does? They should fire his ass.

[Nords]

Quote:

Originally Posted by LOL! If the financial aid officers don't know jack, who does? They should fire his ass.

Poor guy... he probably took the job to get the tuition discount for his kids...

[youbet]

Quote:

Originally Posted by Mickslick Good question, I think it always a potential risky proposition to "indulge" a child just because one can afford it. And yes, college kids are still yet to be fully formed adults that can be ruined long term by not learning and experiencing self reliance and positive character development. So maybe it makes sense to pay for a full ride private school deal for a kid if you can afford it, maybe not - how's that for a wishy washy answer?

Your answer is surprising because you're chosing to "indulge" your kids. By picking up the bills for them to attend the local public institution, you're depriving them of the opportunity to earn their own way. They're likely to wind up being spoiled and not learn self reliance. My kids worked graveyard shift at the slaughter house, often 60 hrs per week, until they could afford to attend the local junior college and pay me room and board! Your kids will be "indulged" compared to mine!

Oh...... OK. Just kidding. But my point is that it's all relative. What you define as indulging and what I define as indulging and what Bill Gates defines as indulging are all going to be different things.

There are some very good reasons why attending a private school may be an advantage to some students (I was one) so if that's what your student needs, you figure out how to pay for it and on you go!

[LOL!]

I'm working on the FAFSA today. It's very simple if you have your 2009 tax-return (or a preliminary one), W2s, and a window showing your MSMoney/Quicken stuff sitting in front of you.

I heard this year would be simplified, so I don't know how complex it was in previous years.

It does not appear that you enter any number at all for your retirement assets (401(k), 403(b), IRAs, Roths). That means all Roth money that can be used for college is completely sheltered.

And the largest number you can enter for non-retirement "Net worth of current investments" is $999,999.00, so you don't have to report your 2nd, 3rd, ..., Nth millions.