I’m going to college…maybe

My excellent adventure to college

Please pass the nitroglycerin!

Jeepers, My dad almost had a heart attack today. In researching for today’s post he realized that he forgot to take into account graduate school. This will add another 4 years of financial burden. So he calculated that the total college costs will be $988,776 not the $379,687 we originally posted. That means my dad will need to make monthly contributions of $1,518 to meet this cost.

 

Here are the assumptions he made to come up with is astronomical number: He thought that I would be attending a college that currently costs $ 35,000 annually (that includes room, books, food and trips home for holidays). He thought that he has 18 years until I leave for college, and I will attend college for 8 years on a full time basis.

 

He wants to save enough to pay for 100% of projected college costs and wants to meet our savings goal by the time I end college. Thanks to my grandparents, dad currently has $2,663 in a 529 college savings plan and wants to continue making monthly contributions to my college savings. He is guessing that college costs will increase by 6% per year and he is guessing that he will earn 7% after-tax each year in my college savings fund.

 

So he should be saving $1,518 a month but can only afford $50 a month. No wonder he is clenching this chest and gasping for air. Can someone please pass the nitroglycerin?

Total that needs to be saved each month

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June 3, 2007 Posted by | College, education, grad school, Saving for college | Leave a comment