A Real Education

Casey Campbell  |  Mar 7, 2024

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.

Read More

Strings Attached

Adam M. Grossman  |  Dec 24, 2023

WITH NO DISRESPECT TO our representatives in Congress, a new rule taking effect in January reminds me of a scene from The Jerk, an old Steve Martin movie. Playing the role of a carnival huckster, Martin shows off a wall of attractive prizes, but then narrows the choices to an impossibly small set of options.
Congress did something similar when it instituted a new rule governing 529 education savings accounts. The rule in question opens up greater flexibility in how surplus 529 funds can be used.

Read More

Getting a Break

Logan Murray  |  Nov 2, 2023

STUDENT LOANS ARE a hot topic—one that’s fraught with confusion and complexity. Still, many borrowers should consider taking action this year. Want to get a better handle on what’s happening? Let’s start with three changes that have lately been in the spotlight:

Federal student loan payments, along with the interest charged, were paused from March 2020 to September 2023. That gave borrowers more than three years to make principal-only payments or, alternatively, to potentially accrue credit toward loan forgiveness without the need to make payments.

Read More

An Educated Choice

Greg Spears  |  Aug 2, 2023

WHEN I WAS YOUNG and unschooled about money, I borrowed thousands of dollars to attend Northwestern University. As I recall, tuition was around $12,000 a year in 1980, and I had only $3,000 to my name. How could I pay?
The dean sent me a letter explaining that the college would lend me the money for my master’s degree in journalism. It would also extend me a work-study job, which would help pay for my spartan off-campus room.

Read More

College in Retirement

Howard Rohleder  |  Jun 29, 2023

I RECENTLY COMPLETED a course called England: From the Fall of Rome to the Norman Conquest. Before that was Books That Matter: The Federalist Papers. Okay, I’m a nerd, I’ll admit it.
Since I retired, I’ve looked for avenues to broaden and deepen my understanding of subjects that I was taught in high school and at the liberal arts college I attended. Back then, there were college courses,

Read More

Making Their Own Way

Ken Begley  |  Jun 20, 2023

OUR FIVE KIDS SPENT a collective 24 years in college. All five have bachelor’s degrees, and three also have master’s degrees. The youngest graduated May 2023. Only one child qualified for non-merit aid—a $300 Pell grant.
My wife and I didn’t give them money for college. We don’t live near a major public university, so four of the five had to live on campus. Here’s what prepared them for college and how to pay for it.

Read More

Grandpa’s Scholarship

Howard Rohleder  |  Mar 23, 2023

WHAT SHOULD I DO with the required minimum distributions from my rollover IRAs?
I’m age 65, which means that—under last year’s tax law—I must begin taking taxable distributions in 2030, the year I turn 73. I’ve been looking at my retirement cash flow, and it appears that my wife and I won’t need the money for our living expenses.
I’m investigating using the money to help fund my grandkids’ college education. I built a spreadsheet that maps my age against the age of each grandchild and determined the years they’re expected to attend college.

Read More

College Conundrum

Edmund Marsh  |  Mar 7, 2023

MY DAUGHTER IS MORE than halfway through her junior year of high school. College and career choices are hot topics in our household. My wife and I have a dilemma: Should we encourage our daughter to pursue a college degree that matches her passions—or nudge her toward one that has a better chance of paying the bills?
My daughter is no slouch in math and science, but her true love turns in another direction.

Read More

Playing Defense

Philip Sun  |  Feb 26, 2023

TRUTH HAS A FUNNY way of punching you in the gut. I received my punch thanks to the 2022 decline in the stock market, which put a dent in the “funded” status of the 529 college-savings plans for my two sons, ages 16 and 14.
Buy and hold is all well and good if you have an infinite investment time horizon. Strict adherents will argue that mark-to-market gains and losses are just noise. Time will smooth out the ripples.

Read More

Games Colleges Play

Greg Spears  |  Sep 13, 2022

WHEN OUR KIDS applied to colleges, the smallest detail of each campus visit mattered a lot. If our daughter admired the student leading our tour, the school skyrocketed in her estimation. If the class our son attended to “get a feel for the place” turned out to be a test period, Grandpa’s alma mater was forever struck from consideration.
In economic terms, the college decision features asymmetric information. Colleges know a lot about us from our detailed personal and financial applications.

Read More

Think of the Children

Greg Spears  |  Aug 24, 2022

WE PUT OUR TWO KIDS through college using 529 plans—and I estimate the accounts easily added 10% to the value of our college savings, compared to what we would have accumulated if we’d invested through a regular taxable account. Yet only 37% of families use 529s to help pay for college, according to a 2021 survey by Sallie Mae.
Like an IRA, a 529 plan gives you a tax break for saving for a specific goal—but,

Read More

A+ for Effort

Charles Schafer  |  Jun 3, 2022

WE HAVE A PROBLEM: We may have saved too much for our daughter’s college education.
My wife and I started contributing aggressively to our daughter’s 529 college savings account as soon as she was born. For the first two years, we invested the full amount of the annual gift-tax exclusion, which was then $14,000. Now, the exclusion is at $16,000, but lately we haven’t been saving as much as we used to. The reason: Our early aggressive saving,

Read More

Eyeing College

Mike Zaccardi  |  May 30, 2022

INVESTING FOR education costs has never been more popular, as evidenced by recent Morningstar data. The research company found that 2021 was a record-breaking year for assets in 529 college savings plans. At almost $500 billion, total investments are up nearly fourfold over the past decade.
A big reason is the tax advantages—investments grow tax-free if they’re used for qualifying education expenses—plus 529 accounts are treated relatively leniently under the college financial-aid formulas. You can learn more about the accounts from other authors who have real life experience saving through 529 plans.

Read More

Still Resolute

Jim Wasserman  |  Apr 7, 2022

AT THE BEGINNING of 2022, I wrote about our resolution to go back to grad school. The short update: Jiab and I are indeed doing it. We’re enrolled in the Master of Arts in Interdisciplinary Studies program at the University of Texas at Dallas.
We scrambled to get the application paperwork done before classes started Jan. 18. Neither of us had applied to school for ourselves since the introduction of online registration, but we found it fairly easy.

Read More

Marked Absent

Kyle McIntosh  |  Feb 15, 2022

THE NATIONAL STUDENT Clearinghouse Research Center recently published a report on postsecondary enrollment for fall 2021, including enrollment at community colleges, undergraduate institutions and graduate schools.
If you’re a believer in postsecondary education, the headline numbers weren’t encouraging. Enrollment fell by 2.7%, or 476,100 students. Over the two years since the start of the pandemic, it’s declined by 5.1%, or 937,500 students.
While the report offers no reasons for these declines, my view is that colleges are struggling to justify their value proposition to students and their families,

Read More