Financial Aid Advice
- Thread starter Joe4Cy
- Start date
Can someone read the tea leaves and let me know what my annual returns will be for the next 6 years in my daughters 529?
One of the biggest regrets of my life is not starting a 529 as soon as my kids were born. I was completely unaware of it. I share my folly so others do not repeat it.
Set up a 529 when you have kids. Just ******* do it.
Have they tried this:
Nonprofit Private Student Loans | ISL Education Lending
We offer a variety of loan products including private student loans and refinancing options, in addition to scholarships and financial resources for college prep.
www.iowastudentloan.org
It’s tough because as infants you have so many expenses and are typically just scraping by. So when you look back, you think it was an obvious mistake to not start one. But, it often just wasn’t in the cards. At minimum, set one up as your kids leave daycare and put a portion of that “savings” into one.
Also, I’d recommend to set up 529’s when you have grandkids. Those seem to be easier to fund for the point in life. And, there are benefits to having them in the grandparents name for FAFSA purposes.
I didnt go the 529 route, however we set up mutual fund accounts and life insurance policies for my kids that they can take over when they turn 18. My oldest is 6, but I have no idea if this is even the best route or not
26% increase over half a year!?! Is that just tuition, or are there new fees in there?
H
Same here. Was totally oblivious to it until a co-worker mentioned it.
The challenge with getting started early is that if you invest in a 401k and HSA, buy a house, and decide to actually feed your offspring, then usually there isn't much left over to put in the 529b.
We managed to save enough in our younger kid's 529 to pay for all of her ISU education except the last semester. We got started right away on her 529. Came up about 50% short on the oldest. He was 2 when I graduated college, and 6 when I learned that 529's were a thing.
H
My nieces and nephew's all open 529s when their kids are born then ask the grandparents to cut back on the fun stuff and fund the 529 instead. As long as G&G are willing it helps a bunch. When the kids are really little they don't know anyway and hopefully they will appreciate it when they are Srs.
Crap … guess I will keep on saving.
Something wrong with the cost of education in this country when you have $70k saved for a kid going into 7th grade and you know it wont be enough unless u get 10% returns for the next 6 years.
Im estimating an all in cost of $120k for 4 years at ISU for her.
It does make you wonder if it is worth it (at least I do) when I went in the stone ages, it was a pretty simple decision. It wasn't terrible and the jobs you got when you got out made it back pretty quick. Good luck to you and your offspring.
can someone give me the very basic explanations/benefits of HSA?
no kids yet. maybe it doesnt make sense right now
no kids yet. maybe it doesnt make sense right now
A couple things: First, encourage her to take credits in HS. My oldest son graduated in 3 years because he had 25 credits when he entered. My daughter will graduate in 3.5 because she had 21 (major required another class also). My youngest will have around 9-12 credits after his Junior year of HS. Second, most kids with decent grades get some sort of scholarship. You also get a 2500 federal tax credit for a kid in college (if they are paying for college, don't be an *** and pocket this, it should go to whoever is paying). I had my kids live in the dorms first year to meet people and then move off campus and save a few thousand dollars.
Books now are cheaper than when I went to school in the early 90s. That racket is pretty much over, but the new trend is the teacher writes their own class book and the prices have started going up so the teacher and school make good money there.
Half the price of college is living expenses, think about it, outside of rent, you probably have a reduction in those costs at home anyhow so that kinda transfers. Lastly, I required my kids to fund 10k of their own schooling, If they got out a semester early or got 10k in scholarships (which both did both of these) it was considered funded. By making them have a little skin in the game, they are a little more serious.
Probably will be close. For our older daughter who graduated in 2023 it was just under $100k for her four years at ISU. That included four years of sorority dues/costs and a semester abroad doing international student teaching.
College Expenses are crazy. Iowa State is relatively inexpensive compared to public schools in other states. My two kids have both graduated from Iowa State even though we live in Indiana. With scholarships, Iowa State was less expensive than Purdue or Indiana even though we paid out of state tuition.
I am into the real costs now. My daughter is in Physician Assistant School. Tuition is about $100K for 2.5 years no matter what school you go to. No scholarships, no jobs, no interest free loans. Then add in living expenses for 2.5 years. No wonder there is a shortage of health care professionals. I'm sure an MD is much worse.
I am into the real costs now. My daughter is in Physician Assistant School. Tuition is about $100K for 2.5 years no matter what school you go to. No scholarships, no jobs, no interest free loans. Then add in living expenses for 2.5 years. No wonder there is a shortage of health care professionals. I'm sure an MD is much worse.
Completely different topic, but I’ll help.
HSA is a savings account for health expenses. It is not an annual use it or lose it thing. So growing that now before you have kids (and the expenses of them) is a good idea. But the idea of an HSA is that it is paired with a High Deductible Health Insurance policy. So you’re basically paying all your health expenses out of pocket outside of major medical (hospital visits).
So, if you have a high deductible health plan, start padding that HSA before you have kids. They’ll exhaust that at some point. Then, as your kids get older and less sickly, pad that account again for when you get old and sickly.
