[Snorlax94]

At the risk of making a ”first-world problems white whine,” like the privileged wealthy kids who complain because their parents are “making” them travel to Paris over the summer, I have to say I find the current system of inflated tuitions to be a frustrating barrier for upper-middle class parents.

Even if a family had almost no income, to my understanding, parents are expected to contribute 10% of their net worth each year, or, if you have two kids 4+ years apart, you’re expected to contribute 57% of your lifetime savings to your children’s colleges (1-.9^8).

For some people, this may not be a problem. Some families’ wealth could be tied up in 401ks or pensions, which could be worth millions, but may not show up in parental contribution formulas. But for families where all of their wealth is considered cash-like, it’s a little disheartening to think possibly more than half of their lifetime savings (including
home equity) could go to tuition.

Maybe I’ll see the expected contributions won’t be as bad as I fear, or maybe by the time my kids go to college, we’ll be well-prepared for the expenses, but right now, the statistic that 82% of students graduating without any debt feels misleading, because it could mask parents taking out a second mortgage on their home (which my frosh roommate’s family had to do), or having to largely wipe out their retirement savings.

[Snorlax94]

At the risk of making a ”first-world problems white whine,” like the privileged wealthy kids who complain because their parents are “making” them travel to Paris over the summer, I have to say I find the current system of inflated tuitions to be a frustrating barrier for upper-middle class parents.

Even if a family had almost no income, to my understanding, parents are expected to contribute 10% of their net worth each year, or, if you have two kids 4+ years apart, you’re expected to contribute 57% of your lifetime savings to your children’s colleges (1-.9^8).

For some people, this may not be a problem. Some families’ wealth could be tied up in 401ks or pensions, which could be worth millions, but may not show up in parental contribution formulas. But for families where all of their wealth is considered cash-like, it’s a little disheartening to think possibly more than half of their lifetime savings (including
home equity) could go to tuition.

Maybe I’ll see the expected contributions won’t be as bad as I fear, or maybe by the time my kids go to college, we’ll be well-prepared for the expenses, but right now, the statistic that 82% of students graduating without any debt feels misleading, because it could mask parents taking out a second mortgage on their home (which my frosh roommate’s family had to do), or having to largely wipe out their retirement savings.