Anon26 asks:
I am trying to figure out my plan and wonder if you have thoughts. We have twins and we live in DC, so I will have to pay two college tuitions simultaneously, and we don’t really have any public options. (The DC Tag program is a pittance.) We have only been in a position to actually save for the past year or so, and while we plan to contribute to 529s aggressively for the next several years, I don’t see how we will be able to cover anything close to 700 K without substantial loans (private tuition X 2 kids X 4 years), which is disheartening. I am pretty sure we won’t qualify for any aid with what I project our income to be at that point.
Huh, the DC Tag program is interesting.
DCTAG awards may be up to $10,000 per academic year toward the difference between in-state and out-of-state tuition (awards will be reduced for less than full-time enrollment). The $10,000 maximum in this case may be distributed to your institution based on the academic calendar (semester, or quarters).
I’d never really thought about what people in DC do. I guess everyone I know who works in DC lives in Virginia or Maryland or has young kids or was just planning on sending their kids to an Ivy league. It looks like some really good state schools are represented, so they could go to, say, UCLA for ~33K. That’s not so bad (though I assume that’s just tuition and doesn’t include room and board). Michigan and UVA are way more. UT would be ~31K. So I dunno, that seems pretty reasonable for a family who is making 300K+ (aka, not eligible for financial aid at most privates). If you’re concerned about money and haven’t been saving, then there are reasonably good public options if your kids can get into them. That’s like, $280K plus room and board? (Of course those numbers will go up every year, but it won’t be $700K.)
It has only been fairly recently that the FAFSA stopped giving a big benefit for financial aid if you have two kids in college at the same time. From what I’m seeing on this DC Urban Mom post, there’s still some benefit at many private schools that use CSS in addition to the FAFSA, but that benefit varies across schools. If you haven’t already, run some different scenarios across Net Private Cost calculators at schools of interest (google the name of your college and financial aid calculator). That will give you a more realistic idea of how each school treats having a sibling in college.
Some lesser-known schools offer substantive twins scholarships.
Most of the private schools DC1 got into would have cost closer to $50K after merit aid than the $86K Carleton is costing — both of those sets of numbers include room and board in addition to tuition. We were able to afford Carleton because we’d been saving $500/month since zie was born and the stock market had literally more than doubled what we put in (seriously, the cost basis for our withdrawals is less than 50% what we took out). In retrospect we should have been completely maxing out our retirement instead, but we were following general retirement advice. (And we did sacrifice a lot to get that 529 savings– every time I see bloggers who make/made a lot more than us complain about how we have an almost full 529 account, I have to bite my tongue about how much they could have saved if they didn’t go on multiple fancy vacations/year, didn’t buy cars so frequently, didn’t have a nanny, didn’t pay for private schools/fancy summer camps, etc.) But that’s a sunk cost. All you can do now is start funneling money in to target date 529 plans. Loans are not the end of the world.
In terms of how to get college costs down otherwise– merit scholarships are still a thing. If your kids are great scholars with great extra curriculars, if your kids are athletes, if they play needed musical instruments etc. etc. then they should get some merit aid at some of the schools they apply to, assuming they don’t just apply to ivies. Some schools are more generous than others with merit aid– that’s something to look into. And of course there’s the two years in community college option, but that’s not a great one if they’re aiming for a prestigious private after finishing (it’s fine if they plan to transfer to a prestigious public, though there may be some hiccups with transferring the full amount of credits, and most community colleges aren’t as good at retention).
So… to summarize. There’s no magic bullet. Go onto NPC (net private cost) calculators and put in a lot of different hypothetical scenarios and see what changes. Save aggressively for college (while still not neglecting your retirement– you can get loans for college)– compound interest is magical. Encourage your kids to do all the things that make them attractive college applicants. Make sure they apply multiple places so you can compare aid packages. Become ok with college loans. Don’t give up on public schools.
Grumpy Nation: Do you have advice for Anon26?