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WE’RE A SINGLE-INCOME family with five children, so the prospect of paying for college for all our kids is daunting, to say the least. Yes, our oldest is now in her second year of college. But we still have a long way to go before they’ve all crossed the finish line.
Our kids are ages 19, 17, 12, nine and six. We’ve been homeschooling them since the beginning, with a few brief exceptions, including one daughter in a Department of Defense high school in Korea for a year and another daughter in a private high school for two years. We’re therefore familiar with having to pay for education—homeschooling isn’t free by any means.
Navigating the college journey is particularly challenging when tackling it without the assistance of a high school guidance counselor, although my wife and I are doing our best, learning how the system works and successfully helping one daughter out the door.
As an officer in the Air Force, I’m planning to retire in four years, at age 51, with a pension that’ll start paying immediately and which—coupled with our investment portfolio—is large enough to cover our expenses. Hitting that goal hasn’t been easy. We’ve been socking away almost 45% of my income. What about college savings? We have a relatively modest amount in a 529 college savings plan, probably enough to cover one child’s undergraduate education.
Many years ago, we stopped adding dollars to the 529. We were advised that students with large 529 accounts tend to get the fewest college scholarship dollars. Quite a few articles from experts corroborate that. Still, I sometimes question our decision and wonder if we’ll regret it.
We were fortunate that our first daughter scored high enough on the PSAT in 11th grade that she was named a National Merit Scholar. Amazingly, that single score on one exam on one particular day eventually led to a full college scholarship that covers tuition, fees, books, room and board. It seems a high score on the PSAT is a surer way to obtain full-ride scholarship offers than a high score on the SAT or ACT.
Granted, outstanding performance on the latter tests is critical to admittance at universities with the strongest reputations. But only the PSAT can lead to a student being declared a National Merit Scholar. As we learned, many colleges will throw dollars at students who score in the top ½% nationally because having a large number of National Merit Scholars boosts a college’s status and rankings. We readily admit we got lucky with child No. 1—as she herself is happy to remind us.
For our second child, our plan is to use my military Post-9/11 GI Bill to finance the bulk of her education. This benefit is earned by active-duty service members after three years of service. If service members don’t use it for their own education, the benefit can be transferred to a spouse or child.
It covers four years of tuition, books and fees, along with a modest monthly housing stipend. The funds may be divided among multiple children, and is payable even if a child receives other scholarships. If that happens with our second child, we’ll invest the excess GI Bill dollars for our other kids’ college expenses.
The amount of tuition that the Post-9/11 GI Bill covers has a relatively low cap of $27,120 for the 2023-24 school year, with all costs above that limit being borne by the recipient. This ceiling therefore limits our college options, although many colleges—including most of the expensive Ivy League institutions—have signed up to be Yellow Ribbon schools. This means they agree to waive any remaining tuition costs above what the GI Bill pays. We anticipate our daughter will attend a private college with total tuition and fees approaching $52,000 a year. The good news: The school is a Yellow Ribbon school.
As a Texas resident prior to joining the military, I’m also entitled to education benefits under the Hazlewood Act, a Texas-specific version of the Post-9/11 GI Bill for veterans. It pays for the active-duty service member—or spouse or child if the benefit is transferred—to attend any Texas public university and pay nothing for tuition and fees. Two caveats: I must be retired before I can use it, and I must continue to reside in Texas for the duration. Other states offer similar plans.
Although the education offered gratis is enticing, I anticipate the stifling Texas heat may push our family farther north in retirement, at the cost of one child’s otherwise-free college tuition. Then again, we may stay here a few years if my son seems drawn to a school in Texas.
That leaves our two youngest kids, and our rather paltry 529 college savings. If we continue to have solid investment gains, we may have enough to pay for one child to attend a private university, or perhaps two if they choose the cheapest public colleges. We might also consider some inexpensive online classes, or community college for the first two years, or something else creative.
Then again, perhaps not all of our kids will even want to attend college. What if they do? We’re willing to draw on our taxable brokerage account—because we’re committed to ensuring none of our children ends up with student debt.
Casey Campbell is an active-duty military periodontist and a homeschooling father of five. He and his family currently live in San Antonio. The views expressed in this article are those of the author and shouldn’t be construed as official or as reflecting the views of the U.S. Air Force or Department of Defense. Check out Casey’s earlier articles.
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“we’re committed to ensuring none of our children ends up with student debt.”
good for you, I think that is what we should do if at all possible. My father took on debt of $3000 to pay my undergrad college, back in the 80s.. postgrad I paid for myself as I was working then.
Another calculation I hadn’t made until it was too late – if you can get two or more in college at the same time, your FAFSA expected contribution remains the same as for one. This can be helpful.
The FAFSA calculator says that paying over half your annual income in college fees is normal and expected. We discussed getting divorced, as that could enormously reduce the cost of college for our family, but decided not to play that game.
Our second boy was in the 0.75% and just missed out on National Merit, much to our chagrin.. it is indeed the best deal in college these days, maybe an investment in PSAT coaching classes is the best ROI 😉
Consider checking out some of the options here for subsequent chilren’s college education. A motivated student can get a great education and appropriate credentials for relatively minimal expense: https://www.choosefi.com/ultimate-guide-to-college-hacking/
I have bit of a different take on college education, having paid full tuition to put two kids through Ivy League schools. As they majored in poetry and animal science, I believe it was the Ivy League credentials that got them their jobs in fields that they love. Many of their high school classmates with similar majors are selling cars, etc.
Without those credentials, I doubt either of my kids would be easily employable as they did not major in finance, pre law or pre med, like the vast majority of college students today.
I was a primary care geriatrician in private practice, and probably made around what Dr Campbell made, but without any benefits and no GI Bill. My wife worked as a nurse, so she got health insurance. We bought a cheap house, used cars, went camping for vacations, and paid off our mortgage early. Every penny we saved went into 529 plans. Consequently, we had the resources to allow our kids to go to any school they could get into.
My son majored in poetry, and without his Ivy League credentials would never have gotten a job teaching in a private high school without long years of additional degrees and years in public school classrooms. He tried public school teaching but the classroom discipline and disorder was intolerable and he resigned in 4 months.
My daughter followed her love, majoring in Animal Science, so would have significant trouble getting a job, without her credentials. Still she had to start at a low end position in a non-profit and work her way up.
My wife and I wanted our kids to study what they loved, because we knew that is how you excel and going to work at something you love is not work!
I saw a lot of people stuck in jobs doing things they hated because of parental expectations, need for a huge salary or extravagant lifestyles.
I applaud you Casey, particularly ensuring your offspring have educational freedoms and options other than conventional norms. Sounds like your daughter recognizes it also.
As Mike Pompeo (CIA,DOD) stated. The Teachers Union realistically sets the standards. It’s unfortunate, along with big business lobbyist.
All he seen in his governmental experience has been usa’s educational standards in decline, lowing standards often more costly and less genuine.
https://news.yahoo.com/pompeo-says-head-teacher-union-232644721.html
I’m unsure who’s credited with its saying.
Thinking outside the box as you’ve done is exemplarily.
The recently lapsed Charlie Munger said it also.
“Take the high road, it’ll serve you well being much less traveled”.
Good luck to you & yours..
Casey, there is a wonderful college just outside Colorado Springs which is all expenses paid by Uncle Sam. It has a most beautiful chapel. Have any of your kids considered going that route?
Patrick — yes! If any of my kids applied and got into the Air Force Academy, we’d be ecstatic. Thus far, my two oldest haven’t shown an interest in that. (I actually worked in their cadet dental clinic for three years….beautiful place!)
You’re doing a great job thinking this through. Five kids to educate is a lot. But it struck me that you’re talking about kid #2 getting your GI benefit and going to a nice private school, #3 maybe going to a Texas public school, and #4-5 taking classes online or at community college. Do you worry that they might resent each other or you for what appears to be inequitable treatment?
When our children were growing up in the late 90s we prioritized paying extra on our mortgage and saving for our retirement. 529s were fairly new. When it came to FAFSA back in the early 2000s we were pleased to discover that these assets were not considered towards the family contribution so our children qualified for significant governmental financial assistance. We had so much equity in our house that we were able to refinance our house from a 30 to 15 year mortgage during the Russian debt crisis in 1998 and take out the equity to pay our family contributions. We put the equity into 6 month CDs, put the tuition payments on the credit card (to get the points) and then immediately paid off the credit card balance as the CD maturity was coordinated with the tuition payment due dates. Also back then you could deduct your interest payments from your taxable income as well. Ah, the good old days!
I was one of the last of the draftees and after discharge from active duty I used my GI education benefits starting in 1974 and graduated in 1977. I was supporting a young family at the time and I do not know if college would have been a viable option for me without my GI benefit. I am grateful for that post service benefit.
I was unaware of the new ability to elect to transfer your earned GI educational benefit to family. I took a quick look at milConnect and there appears to be a lot of requirements. I hope you have access to informed support from the USAF so you may choose wisely and avoid any pitfalls that are embedded in the requirements.
My two youngest children were great students in high school and each were able to eliminate about a semester in college because of college credit from advanced placement courses taken in high school. I do not know if that is an option with home schooling, but if the option is available it is one I recommend.
My youngest attended Vanderbilt starting in the fall of 2005. When he reached his third year his cost of education changed when the University adopted a new policy of making grants for the costs in excess of the then titled expected family contribution amount. That change reduced the cost of his college education by tens of thousands of dollars. My experience recommendation is to be sure to compare the net education cost and not the list prices of the schools you consider. I would look hard at schools with great endowments.
When I left the Army I was offered the ability to have some low cost permanent life insurance which I declined. I regret declining that offer. I also had the ability to continue serving in the active reserve which I also declined. I have two retired friends who were officers during their active service and did stay in the reserve. They are both happy with their decision to do so.
I am interested if you are planning at age 51 to retire just from the USAF or from active employment overall. I would be worried about the approximate 10 years or so of zeros on my social security earnings record and my smaller SS earned benefit and the impact of those non earning years on the spousal SS benefit your wife will receive.
Best, Bill
Hi Bill, thank you for your service to our nation. We fortunately were able to navigate the AP test pathway, even as homeschoolers, although it took active engagement with the local high school to ensure we got our foot in the door. It sounds like your son’s experience at Vandy worked out well financially, especially given its expensive price tag and outstanding reputation. To answer your question about retirement, I do anticipate I’ll have some job again after I retire from the Air Force, but not sure exactly what and also won’t be in a rush. It’ll be nice to have a little breathing room for a while. I think my dream would be part-time teaching chemistry or anatomy/physiology at a private high school. That would eliminate a few of those zeros on my social security record you mentioned, and supplement my military pension a bit. Thanks again and I hope retirement is treating you well.
Maybe not for your family Casey, but for others: there are several options for online degrees now. For instance, WGU (Western Governors University) has a self-paced education platform that charges $4,000 every 6 months for students to work at their own pace. I’ve read stories about kids graduating as an undergraduate (and enrolling in grad school) before most students even finish traditional high school.
Nate, thank you. I haven’t heard of this before.
We don’t realize Textbooks would be so expensive.
The children got good at finding used textbooks with little in the way of highlighting by previous students. Mostly it was only in the first chapter.
We’ve definitely made good use of Amazon’s used textbooks, as well as some online “rental” type options.
Many books are online now or part of fee.
Came here to say this. My university has an equitable access program whereby all textbooks for all classes are covered by a $199 fee, and if you receive financial aid, the fee is waived. And/or you can get a digital version of the book from the library added to your course website. My students this quarter have two assigned textbooks and can get them for free through a combination of the above options.
One of the critical items to consider is the difference between need-based financial aid and merit aid. Many excellent private schools dole out merit-aid. I highly recommend NY Times columnist Ron Leiber’s book “The Price You Pay for College” to understand pricing and aid.
Yes James, and I’ve been a little frustrated that even applying for merit aid typically requires completing a FAFSA. I don’t really have the desire for any given school to know about my finances, and you wouldn’t think it should matter anyway for pure merit-based aid, yet most require it anyway. Much of the purportedly merit-based aid also factors in a parent’s ability to pay, which can be frustrating. And thank you for the book tip — I’ve read it! Great book.
Casey – I have to push back..Merit Aid typically does not require filing the FAFSA. Is not related to family finances. We didn’t file the FAFSA and all three schools that have offered admission to my son this Spring have offered Merit Aid.
That’s good to hear, James. In our limited experience (granted, it’s only one child), the schools offering any aid at all–merit and otherwise–required the FAFSA. I’m glad to know hopefully that was a one-off. We still have four kids to go, so we’ll see how it goes for the next few. Congrats to your son — great to hear.
It’s important to distinguish federal from institutional aid, and needs-based aid from merit aid. To get federal aid, which is needs-based, you must file the FAFSA. To receive needs-based aid from the college’s own endowment, the FAFSA — plus, in some cases, the CSS profile form — will also be required. But merit-based aid from the college shouldn’t require any financial disclosure.
Great article! I have a relative who meets the criteria for the Hazelwood Act so I’ll be sure to make them aware of that. Thanks for the tip! Two of my kids have graduate degrees in health care professions that require state licensure from accredited schools and whose graduates are in demand. In such professions, I doubt the tuition premium of expensive schools is (generally) worth it. Both of them attended graduate school in state universities and graduated with no debt, with one of them attending a web based graduate program in another state. I was pleasantly surprised to find that web based graduate program didn’t charge out of state students a higher tuition fee. His entire tuition bill for an accredited graduate program was under $35K. So don’t limit your research to local state universities. I was surprised to find such a great deal in another state university system. It was a good thing being able to get them through grad school affordably, which is the only way we could fund it without any student debt.
Hi OldITGuy, I’m in agreement that there really isn’t much bang for the buck regarding the sky-high tuition of some of the elite private universities (if paying anywhere near sticker price). I served on my dental school’s admissions committee and can corroborate that a strong GPA and class rank from any given state school can lead to success just as readily as similar credentials from an elite private school. We accepted people from both types of schools. In my role as Dean of the Air Force Postgraduate Dental School, I chair the committee that selects Air Force-funded health profession scholarships for dental school, and it’s a similar story. We have selectees from the whole gamut–from “directional” state universities (i.e., “Southwest XYZ State University”) to the Ivy League.
I think your best college bet is to stay in TX. You can’t beat “free” and there are enough strong colleges and universities there. Added bonuses: no state income tax and a growing real estate market, so ride the wave, especially around Austin…
As an aside: we hung our hat on building substantial 529 plan balances. They saved the day for our three sons’ out-of-state public universities expenses. If owned as a parental asset, FAFSA “only” counts/weights 529 balances at 5.64%. Encourage any grandparents to start a plan in their own name, then none of it counts, from what I’ve read.
Please look up http://www.savingforcollege.com for a wealth of information.
We were never going to receive any help due to need given our dual income level, so it was imperative to save as close to $200k+ in our 529 Plans as we could achieve. Investment gains helped tremendously over our two-decade investing life. Plus as Illinois residents we received a credit for our contributions on our state tax return. Any tuition, housing, etc. shortfall was paid from current cashflow.
Good luck in your college journeys.
PS Our oldest earned a 4-year Naval ROTC scholarship, he stayed in that program one year then switched to a major he loved, but it was no longer a “blessed” engineering one, so that golden tuition egg evaporated. But we saved one year of tuition, so we were grateful for that. The youngest earned $15k each year for merit, so his IU tuition was then more in line with IL in-state rates. All this said to show there are many ways to save on college.
Stacey, thank you for sharing your successes, including your son’s ROTC scholarship and eventual switch to IU. Perhaps a bit most costly, but hopefully very worthwhile for him in the long run.
Our youngest attended IU, our oldest stayed at his original school, he walked toward his passion, and it wasn’t engineering. My apologies if that wasn’t clear.
Casey, our family also learned the value of test scores when it came to paying for college. I encourage your family to be diligent with academics and utilize a website such as Khan Academy for test prep.
Another thought is investigating state tuition help. For a state school in Georgia, tuition is covered for students who pass a threshold GPA and test score.
Edmund, thank you for this. We’ve had a small amount of experience with Khan Academy, but not much. We will definitely be looking into it soon.
I don’t know Casey, it seems to me you are in very good shape with an aggregate of generous benefits. With a good military pension maybe you stretched too far saving 45% of income.
We had 1,2,3 children in college ten years in a row. One income so we used all our assets at the time, took a HELOC and then remortgaged our home and worked a second job. We made it through.
Mr. Quinn, I agree we may have oversaved, but it’s somehow in my DNA to do so. Glad to hear you were able to get your three kids through school on one income.
Four actually
Congratulations on your daughter’s full-ride scholarship–that’s an impressive achievement!
I think the world of higher education is on the cusp of seeing some major changes. A college degree is proving to not be quite as valuable as it once was, at least in some fields. More employers seem to be deciding to educate their own employees rather than relying on colleges to educate them.
In the past couple of weeks, I’ve heard about many interesting opportunities available to young people. I wish some of them had been available when I was younger. I ended up attending college by default because I couldn’t think of anything better to do. I sometimes wish I could have a post-high-school-graduation ‘do-over’.
Since you’re in the military, you might be aware of the ‘Build Submarines‘ program. 100,000 jobs need to be filled over the next decade as the US Navy builds a new nuclear submarine fleet.
My husband is a Marine Corps veteran. I just became aware of the Marine Corps Scholarship Foundation which provides educational financial assistance to children of USMC members. Awards are available for traditional four-year colleges as well as trade schools and community colleges.
The Mike Rowe WORKS Foundation offers scholarships for students pursuing a career in the skilled trades.
Hi Kristine, thank you for posting. Wow, you’re right — so many amazing opportunities that weren’t available back in the day. Or if they were, I certainly didn’t know about them! It’s nice to know there are many reasonable (and cheaper) alternatives to college.
My experience in paying for my children’s college was different than yours. My wife and I funded 529s as much as possible and it did not have a big impact on the financial aid determination. Income had a much bigger impact than savings on financial aid eligibility. It resulted in about 1/3 savings, 1/3 loans, 1/3 current income. Both kids chose to go to private 4-year colleges and the final cost was surprisingly similar to our state’s public university due to differences in financial aid. I also think they experienced a much more diverse group of students at the out-of-state private schools than they would have gotten at our state school. It’s worked out well for them. Of course it was a financial struggle during those years and we just had two children. All the best to you.
Mark, our first daughter (the only child in college) also went to a private college out of state, and I concur with you about the diversity she has encountered. She and we are both very content with her choice, and I anticipate my 2nd daughter will probably make a similar decision.
Casey,
Keep in mind college isn’t a panacea for success any longer. There are tons of careers out there that don’t require “investing” absurd amounts of money in a four year degree. Airlines no longer require a degree to become a pilot for example.
Additionally, a large number of these institutions of higher learning have become very political and nonsensical. Kids are fed a bunch of propaganda. I imagine your kids would be smart enough to avoid this but be wary.
You certainly have thought and planned well for the expenses. Starting adult life without debt is one of the best gifts you can give to your kids. That’s outstanding!!! Congrats to both of you.
Thanks Tom, and I agree with you fully that non-college options will be worthwhile to consider. If any of my kids chooses to go another route, we’ll be ready to support for sure.