Click here to go to the NEW College Discussion Forum

Whenever I read discussions about financial aid, it usually seems to be people whining about how their EFC is way more than they can afford. The EFC is based on income and assets, so if it's not affordable, maybe the family is spending too much.

These same families never seem to have saved anything for college, either. Is it a huge surprise that 18 years after the kid is born college expenses come along? It's not like many of these families are struggling to survive - they have nice houses and nice cars. It just seems like college savings come after everything else.

By Shennie (Shennie) on Friday, June 21, 2002 - 11:33 am: Edit

It is not that simple. We did not really have the financial ability to save for college until about 5 years ago. There are lots of reasons people find themselves in this situation. For ourselves, we made the choice for me to stay home with our children. Our first was born just as my husband finished grad school. For the next nine years we lived on his income, which was adequate, but not substantial. Through a lot of scrimping we were able to put together a down payment on our house.

When my youngest was 4, I went back to school to get additional certification so that I could be employable. It was not until I was working for 2 years that we felt like we had anything to set aside for college. Since then, we have been on a fairly aggressive savings schedule.

We still live in the first house we bought. We were a one car family until a year ago. Our family van has over 200,000 miles on it. Our current EFC is such that we do not qualify for any need based aid. We are not whining or complaining, but with 3 kids to put through college in the next 8 years, any help is gratefully accepted.

The grants my son has received will pay for 40% of his expenses this year. We are able to meet the other 60% ourselves without going into savings. The savings will be used when we have 2 in college at the same time. Even then, we won't be able to meet all the expenses without some grants or going into debt.

You might think that we were foolish to try and do this on one income for so long, but I don't agree. The benefits to the kids far outweigh the financial difficulties. I am sure there are many others on this board who also found it difficult to save for college. We all make choices and have to live with them.

By joanne t (Joanne0012) on Friday, June 21, 2002 - 06:02 pm: Edit

I believe that the EFC is per household, not per child, so once you have two in college, you might get some aid. In fact, you might want to encourage offspring number 1 to take a year off, to increase the years of overlap!

By 1sttimecollegemom on Friday, June 21, 2002 - 06:26 pm: Edit

Great post Shennie! Nothing is cut in stone when it comes to educational savings. We too were not in a position to start saving right away. And when we did it always seems as if something happened which we had to take a little out for. Medical bills, natural disasters, or just little year to year expenses can add up.

My problem with financial aid is the fact that we have saved some, but not only do we seem to be penalized for the money we've saved for college (which will be eaten up the first couple of years) but that they don't take into consideration other factors that a family has to deal with, i.e. helping an elderly parent, medical bills, business expenses, etc.

InvestMan, must have the perfect well paying job, with the perfect life where nothing bad every happens. If all of us could only be so lucky.

By Physcal E. Prudent on Saturday, June 22, 2002 - 11:20 am: Edit

It's a question of values, not everyone thinks that paying full freight for a private college is worth it especially when public schools are priced so reasonably. Also, everyone draws the line differently when it comes to the caliber of school they think justifies the investment.

I don't think that your comment to InvestMan was appropriate, 1sttime, especially when so many people complain without seeming to have put much thought into this issue; after all, they only had 18 years to prepare themselves. One need not be perfect to anticipate these costs. I remember hearing one person moaning and groaning about the high price of college and later in the same conversation casually mentioning thier vacation home. That's probably the sort of person InvestMan had in mind when he started this discussion. I doubt anyone faults those who were fiscally responsible but couldn't afford the price of private school.

By 1sttimecollegemom on Sunday, June 23, 2002 - 12:49 am: Edit

I'm sorry that you thought my comment was not appropriate. I did not mean to offend you nor him. I just felt it very odd, that InvestMan started a topic with a comment about how other people handle their finances. No question about financial aid or scholarships. When I read the statement I felt like it was condescending and spitefull. Perhaps I read meaning into the statement that wasn't there.

By InvestMan on Sunday, June 23, 2002 - 01:56 pm: Edit

No offense taken, collegemom, and I didn't mean to pick on anyone in particular. I'm sure there are families with situations that make their EFC difficult - unexpected job loss, big medical bills, etc. I can assure you, though, that I'm acquainted with people who are driving late model cars, take annual vacations, etc., who STILL whine about their EFC. These families did not save much at all, but rather spent their income on maintaining their lifestyle. When college finally came along, they were disappointed that nobody was going to pick up the tab for them.

By lynzee on Tuesday, August 13, 2002 - 05:22 am: Edit

To my dear Investman...
I don't know about you but in my family, we don't lounge around in "nice houses" and we don't cruise around in "nice cars." Instead, we spend everyday just trying to make ends meet. We got a whole load of dependant kids and relatives to take care of and at the end of the day, our resources goes on rent, food, bills, repaying loans and so on.
I spent four months at a part time job just to get myself a decent mobile.So its not like I don't know anything about saving or the value of money. Also, considering the pay our parents get less inevitable expenses and massive fees of colleges, I don't think i'm the only one who finds other people "whining" any worse than your insensate letter. I truly wish there were people who could afford to talk like you...Flames deleted by admin. Be nice, people!

By walden on Tuesday, August 13, 2002 - 09:14 am: Edit

As was already pointed out, Lynzee, Investman wasn't talking about people like you, so why are you replying as if he was? I know dozens of people who do fit that description. One of my daughter's best friends comes from a high income family. All their money goes to new cars every year, vacations, additions on the house, remodeling, new inground pool, etc. After she applied to colleges and was accepted at very good ones (brilliant, talented, hardworking young woman) they told her state school was all they could afford. On the other hand, we live in a very small house, drive an eight year old car, take only a moderate vacation, hardly ever eat out, sent kids to public school, buy only discount clothes, etc., and throw everything extra into savings, so our kids could go to any school they qualified for. It's a choice of values: eduation is number one for us, but not for everyone. Investman is talking about people who want an upper middle class lifestyle and then say they can't afford school, not frugal people doing their best. Those of you who answered him all showed you are not who he is talking about. Again, there are many people who are: you should object to them too; they're often the ones who know how to game the system to get more aid for their kids, leaving less for those of you who really need it.

By BADALS on Tuesday, August 13, 2002 - 05:27 pm: Edit

Speaking from experience I live in a household where our income is fairly high, but we still dont have enough to save for college. Its not that we bask in everyday luxury, we dont, we live in a small townhouse and have 2 common cars. We hardly ever go on vacation, yet when my son applies for aid they'll see the high income and look down upon it come on !

By Dadster on Tuesday, August 13, 2002 - 07:55 pm: Edit

You probably live in a high cost of living area, Badals. That's a common complaint - an income that would allow both a comfortable lifestyle and savings in a small midwest or southeast city is going to be marginal in New York City or many West Coast locations.

By BADALS on Friday, August 16, 2002 - 01:43 pm: Edit

How true, how true

We live in an upscale neighborhood in the Silicon Valley where small four bedroom homes often go for a million dollars. Anyway...

By Jennifer (Jennifer) on Tuesday, November 05, 2002 - 08:47 pm: Edit

I got the short end of the stick when it came to frugal families. They don't make very much money, but they spend it like they're doctors. I worked at a parttime job for a year and saved up $1500 for college. That's more than my mom, dad, step-mom, and sister together have in their checking, savings, and purses combined. :p

By matty on Thursday, November 14, 2002 - 07:58 pm: Edit

Same sit here living in Seattle. Especially hard when my college money was in the market >:-x

By Shoshana on Monday, December 30, 2002 - 07:12 pm: Edit

First, I think most people did not predict this significant a decline in the economy.

Second, how can you expect students to be able to control how much their parents are saving? Yes, by the time we are in highschool, we can discuss these issues with parents, but how is what my parents did when I was in elementary school my fault?

By Rafael S. on Tuesday, January 28, 2003 - 05:48 am: Edit

I recently graduated from a state university here in NC, and getting money to pay off each semester was one of the hardest trials I have ever been put through. Neither of my parents have a college education. They came from a latin-american country and in that culture, are raised to believe that school is not as important as work. So when I was younger, my parents never really considered that I would have decided to pursue my education. They don't make that much money, and for them to have paid my college tuition, it would have hurt them financially, so I applied for financial aid, and was only offered loans. I did take some loans, but to meet the rest of what I needed to pay, I worked 4 jobs at the same time for almost 3 yrs.(Security officer, store sales, part-time computer tech and worked at a local newspaper) It was insane! Yes it brought me the money I needed to pay off tuiton, books etc. But I would go almost without any sleep, because once I finished one job, it was straight to class and then straight to my next job. anyways, to make this short, I guess my point is that nothing is impossible. Saving for college is all about being determined.

By FatherOfGenius on Thursday, January 30, 2003 - 08:55 pm: Edit

Here's a real story. Great paying job...got sick...lost job...unemployed for 2 years...high medical bills...looks like have to sell home...looking at moving away to area with lower cost of living...son is a genius...not sure how am going pay for his college...he'll have to work his way through...probably will be most valuable lesson he'll learn in life...end of story.

By rose petrovi on Saturday, February 01, 2003 - 10:52 pm: Edit

My relative is the student on college in Europe for phisiotherapy(first semester). She wants to be student in Toronto.How is possible to get scholarship for styding and which college she can chose for studing in Toronto?

Thanks,

Rose

By Ms. on Sunday, February 02, 2003 - 12:06 am: Edit

As a student, I would like to speak. My parents have struggled their entire lives to make ends meat. Just as they got ahead, my older sister and I going through college completely wiped out their saving. Our "EFC" is completely absurd. There is no way that my parents could afford the amount the government says that they can contribute. The goverment does not take into account where people live, cost of living, and many other situations. My parents have worked their entire lives to put a moderate house over our head, take good care of us, and no they don't have late model cars or take lavish vacations. Why should they be punished because they have worked so hard to feed and cloth us. From your opinion, it is amazing that my parents, staying right at their means, can still not afford a public school. To be quite honest, the can barely afford a community college. So what would you suggest I do? I cannot get money from the government because my parents are not in a poverty class but they do not make enough to say "here, go to college and let me pay for it out of my lush savings account!" I would honestly like to hear your suggestions.

By anothermom on Tuesday, February 04, 2003 - 10:48 am: Edit

How do most people plan to pay the cost of private colleges? We made the choice to send our two children to religious K-12 schools -- we continue to feel that this was the best choice for them. The tuition bill and music lessons didn't leave room to save $150K per child. Do you plan on taking on loans?

By Thedad (Thedad) on Tuesday, February 04, 2003 - 11:29 am: Edit

anothermom, I see loans in our future. Smaller
ones for the daughter, larger ones for us. Fortunately, I can at least conceive of being to
pay them off...my income is wildly variable but
about one really good year in five would help a lot.

Ms., this may not make sense, but oddly enough, a lot of private schools have the ability to offer MUCH more financial aid than public colleges/universities which tend to have rote guidelines, so much so that even though the "list price" is WAY higher, you can attend private schools for less money if the financial aid is generous enough. From what I make of your profile, I think you'd have a fighting chance.

By ME on Thursday, February 06, 2003 - 12:00 pm: Edit

Uh....how about because there are bills to pay? A $300-$400 heating bill per month in the winter months is just plain ridiculous. Then there's the summer air conditioning. Life is too expensive. What is there left to save once you've paid taxes in April, used money for bills, food, clothing, etc? Certainly not much.

By ME on Thursday, February 06, 2003 - 12:03 pm: Edit

Here's another problem I have. Athletes who do nothing in regards to actual schoolwork(not all of them do this, yes I have met a FEW who actually play and get good grades), yet they get scholarships to play sports. Playing baseball or whatever is not going to help you in life. So what if you play pro? If you get an injury that ruins your sports career...then that's it!Ugh!!!!!!!!

By anonj on Friday, February 07, 2003 - 12:28 pm: Edit

Big misstatement: "Playing baseball or whatever is not going to help you in life." Actually, there are huge lifelong benefits to being part of a team; for starters you are much better at time management since you have to plan study time around practices/games. You also learn how to be part of a team instead of just being a me-me-me type of person - and in most work situations (and family!) it pays to know how to be a solid contributor without having to have all the glory. Besides all this you have the benefits of regular exercise as well as strong social attachments.

By Morgantruce (Morgantruce) on Sunday, February 09, 2003 - 11:35 am: Edit

If you spend every dime you make, or spend more than you make---your life will always be frantic.

If you can manage to save EVEN A DIME... no matter how much you earn---your life will be calm.

--Old Proverb

------
All that said, college is an expensive undertaking that someone has to pay for---and something that is so obviously beneficial as college, should cause considerable financial pain.

The only thing in general disagreement is whether the individual or the society should bear the pain--and that's why politics was invented.

By Conservative on Thursday, February 13, 2003 - 05:58 pm: Edit

The reason why so many of us are having problems saving money for college is because we live in a liberalized nation. We end up paying 40% of our hard earned salaries to the government only so lazy SOBs with 8 children and no job (illegal aliens in many cases) can receive welfare and the tons of other government subsidized benefits.

By Mike (Mike) on Thursday, February 13, 2003 - 08:00 pm: Edit

No conservative, the reason people don't save is because people are a bit spoiled and think they need every gadget or they have had bad luck in health or working at Enron.

My parents have saved enough to cover the family portion and have paid their taxes and donate to charities. I guess they are smart liberals.