I have a college freshman and we didn't start saving for her college costs until January of this year but we did pay down all of our debt (except our mortgage which is low anyway) in anticipation of paying as our daughter goes through college.
We are a middle income family and our daughter is going to a public university and we did not qualify for any need-based aid. Yes, we can afford the $16,000/yr for our daughter to attend college but it is because we live in a modest house for our income, don't have the newest technology (TV's, laptops, digital cameras, etc.), haven't spent our summers traveling in Europe, etc. We live within our means.
I have to say I'm jealous of families who have not worked hard to ensure their child gets a college education who end up with need-based aid when we have been responsible and get to pay the full amount so other students can attend the same classes my daughter attends without having to pay anything.
Higher education costs need to be controlled in some way so everyone has the same amount of access to higher education.
Middle Class Momof WA1:11PM November 11, 2010
Saving, for college and otherwise, never hurt anyone, Lynn. Your advice, as per usual, is right on, and in this era of escalating college costs, parents (and kids) should sock away as much as they can -- using the 529 as the centerpiece of their college savings plan.
Regardless of the treatment of 529 Plans under both FAFSA and CSS Profile (SEE http://www.finaid.org/savings/loophole.phtml), 529s are the vehicle of choice (New York has a great 529 Plan, by the way) for college savings, providing, along with the opportunity to amass a considerable college nest egg, myriad tax advantages, from tax-free distributions to deductions from the State Income Tax.
Of course, most of us cannot afford to rely on savings alone, or the generosity of the financial aid office, when it comes to paying for college, where six figures is quickly becoming the norm for a four year stint.
That's why a prudent plan to search out and apply for scholarship and grant money, outside the college realm and not necessarily within the purview of either the FAFSA or the CSS Profile, must be an integral part of every college-bound student's mantra. There is money out there for college, if you know where to look for it, and are willing to invest the time to apply.
Parents and students are encouraged to visit my blog at www.TheCollegeWhisperer.com for more thoughts on getting into, and paying for, college.
The College Whispererof NY8:41AM November 04, 2010
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Middle Class Mom of WA 1:11PM November 11, 2010
The College Whisperer of NY 8:41AM November 04, 2010