Comments on: Paying For Three Kids To Go To College Is Going To Be Expensive http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/ Debt Reduction Rocks - We Are Living Debt Free! Sat, 21 Nov 2009 11:44:22 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Funny about Money http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/comment-page-1/#comment-90668 Funny about Money Thu, 21 Feb 2008 03:34:58 +0000 http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/#comment-90668 This is very wise. As a university faculty member, one of the things I find especially annoying about higher education in the United States is the amount of debt young people are forced to assume to get degrees, even at undistinguished public institutions. I happen to work for one of those, a vast learning factory whose leadership has never understood the distinction between quality and quantity. Regular jumps in tuition vastly outstrip inflation; the cost of textbooks is shameful. My dean recently told me the Powers That Be want to convert my research assistants to hourly workers so that the college won't have to cover tuition waivers and health insurance. And the Hot New Thing is to tack a surcharge on specific programs perceived to be in demand among students. After an ambitious PR campaign to popularize an interdisciplinary and highly questionable "master's of liberal arts" program, the university added a $12,000 surcharge for the privilege of enrolling in a program that will leave you eminently unemployable. When costs go up to the point where students are strapped for decades after they graduate, it's not surprising young people no longer value a broad education but instead see the university as a place to get high-priced vocational training. This is very wise.

As a university faculty member, one of the things I find especially annoying about higher education in the United States is the amount of debt young people are forced to assume to get degrees, even at undistinguished public institutions. I happen to work for one of those, a vast learning factory whose leadership has never understood the distinction between quality and quantity.

Regular jumps in tuition vastly outstrip inflation; the cost of textbooks is shameful. My dean recently told me the Powers That Be want to convert my research assistants to hourly workers so that the college won’t have to cover tuition waivers and health insurance. And the Hot New Thing is to tack a surcharge on specific programs perceived to be in demand among students. After an ambitious PR campaign to popularize an interdisciplinary and highly questionable “master’s of liberal arts” program, the university added a $12,000 surcharge for the privilege of enrolling in a program that will leave you eminently unemployable.

When costs go up to the point where students are strapped for decades after they graduate, it’s not surprising young people no longer value a broad education but instead see the university as a place to get high-priced vocational training.

]]> By: Sam http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/comment-page-1/#comment-90357 Sam Tue, 19 Feb 2008 20:34:36 +0000 http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/#comment-90357 Note re: lottery scholarships. Here in Fla. we have a similar program called Bright Futures which has been very popular, so popular that they are now considering making it harder to qualify for the program. Note re: lottery scholarships. Here in Fla. we have a similar program called Bright Futures which has been very popular, so popular that they are now considering making it harder to qualify for the program.

]]> By: Adfecto http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/comment-page-1/#comment-90054 Adfecto Tue, 19 Feb 2008 04:28:19 +0000 http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/#comment-90054 I commend you on maxing the ESA accounts. We don't have kids yet but the future bill for college is mind blowing. Inflation will cut a big chunk out of what you manage to save as well. In recent years the increase in tuition has been at least double to rate of normal inflation. Unless something changes on the political front your 8% annual return will just barely beat the growth in tuition. That's a scary thought. I commend you on maxing the ESA accounts. We don’t have kids yet but the future bill for college is mind blowing. Inflation will cut a big chunk out of what you manage to save as well. In recent years the increase in tuition has been at least double to rate of normal inflation. Unless something changes on the political front your 8% annual return will just barely beat the growth in tuition. That’s a scary thought.

]]> By: fandd http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/comment-page-1/#comment-89912 fandd Mon, 18 Feb 2008 18:22:54 +0000 http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/#comment-89912 Another option that I saw a lot of when I lived in New York State but not so much in Georgia, is for students to spend their first two years at a community college and then transfer to a private university or a large public university. Folks only care about where you graduated from, not where you spent your first two years. Another option that I saw a lot of when I lived in New York State but not so much in Georgia, is for students to spend their first two years at a community college and then transfer to a private university or a large public university. Folks only care about where you graduated from, not where you spent your first two years.

]]> By: NCN http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/comment-page-1/#comment-89899 NCN Mon, 18 Feb 2008 17:57:17 +0000 http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/#comment-89899 @R.J - It's my understanding that funds can be transferred from one sibling to another - so, even if one kid doesn't go to college, the money in that account can go to another kid... also, the money can be used for pre-college education expenses, like stuff for high school... @Brandon - ESAs offer more investment options - I can pick and choose the funds I want to purchase... @R.J – It’s my understanding that funds can be transferred from one sibling to another – so, even if one kid doesn’t go to college, the money in that account can go to another kid… also, the money can be used for pre-college education expenses, like stuff for high school…

@Brandon – ESAs offer more investment options – I can pick and choose the funds I want to purchase…

]]> By: Brandon Barkley http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/comment-page-1/#comment-89884 Brandon Barkley Mon, 18 Feb 2008 17:37:21 +0000 http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/#comment-89884 NCN, maybe you shared this before, but why do you go with ESAs over 529 plans? NCN, maybe you shared this before, but why do you go with ESAs over 529 plans?

]]> By: kpow http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/comment-page-1/#comment-89883 kpow Mon, 18 Feb 2008 17:33:45 +0000 http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/#comment-89883 I attended UGA on the Hope- what a wonderful thing! Thanks to help from my parents I graduated loan-free. I hope your kids are able to have the same experience. I attended UGA on the Hope- what a wonderful thing! Thanks to help from my parents I graduated loan-free. I hope your kids are able to have the same experience.

]]> By: R.J. http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/comment-page-1/#comment-89870 R.J. Mon, 18 Feb 2008 16:55:29 +0000 http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/#comment-89870 I guess I may have a different view on this than most... Can the money you put into their ESA's be used for anything other than college? I ask because in my own experience, my two elder siblings both had savings accounts for college and spent them frivolously on cars. Right now they're still living with my parents (27 and 25 years old). Whereas my wife and I paid our own way through college and have jobs, our own house, cars, etc. We were thinking of starting a savings account, but if they don't use it for college they don't get the money. It gives them an incentive to go to college, but not one to spend my hard-earned money on unnecessary things and get themselves into debt. I guess I may have a different view on this than most… Can the money you put into their ESA’s be used for anything other than college?

I ask because in my own experience, my two elder siblings both had savings accounts for college and spent them frivolously on cars. Right now they’re still living with my parents (27 and 25 years old). Whereas my wife and I paid our own way through college and have jobs, our own house, cars, etc.

We were thinking of starting a savings account, but if they don’t use it for college they don’t get the money. It gives them an incentive to go to college, but not one to spend my hard-earned money on unnecessary things and get themselves into debt.

]]> By: Becky@FamilyandFinances http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/comment-page-1/#comment-89854 Becky@FamilyandFinances Mon, 18 Feb 2008 16:37:23 +0000 http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/#comment-89854 I'm glad you're both saving for you kids' education and expecting them to pay for some of it themselves. My siblings and I all paid our own way through school, and I think it helped all of us learn to appreciate the education and work hard while we were in school. I’m glad you’re both saving for you kids’ education and expecting them to pay for some of it themselves.
My siblings and I all paid our own way through school, and I think it helped all of us learn to appreciate the education and work hard while we were in school.

]]> By: NCN http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/comment-page-1/#comment-89848 NCN Mon, 18 Feb 2008 16:26:22 +0000 http://www.ncnblog.com/2008/02/18/paying-for-three-kids-to-go-to-college-is-going-to-be-expensive/#comment-89848 @Renee.. Great job! After getting out of debt and saving our emergency fund... we then focused on long-term savings in our retirement accounts... I'll write a post and have it up by 1PM Eastern today, w/ details... @Steve T ... I've seen various average returns for the S&P 500... most say that it averages a 9 to 12 percent return, so my 8 percent may actually be conservative, depending on what actually happens w/ the market... i purchase etfs based on the broad market... NCN @Renee.. Great job! After getting out of debt and saving our emergency fund… we then focused on long-term savings in our retirement accounts… I’ll write a post and have it up by 1PM Eastern today, w/ details…

@Steve T … I’ve seen various average returns for the S&P 500… most say that it averages a 9 to 12 percent return, so my 8 percent may actually be conservative, depending on what actually happens w/ the market… i purchase etfs based on the broad market…

NCN

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