Tuesday, July 26, 2011

College Costs

By now, both the husband and I are actively saving for baby’s college. I have used one of those online college savings calculators. The tragedy is that at 6 months, we are already behind. According to the savings calculator, the cost of university in 2028, when baby goes to college (InshAllah), four years of school will cost just a little under $400,000! For us to achieve that in 18 years, the husband and I have to put in $662 per month. Sadly, we do not have that kind of money. Maybe in a few years, when hopefully my earning potential will be more, we can put that kind of money away. Right now baby has a 529 plan, which is something; though like a 401k, the 529 plan fluctuates with the market and in the last quarter we lost money, ugh.

All of this is to preface what I am actually writing about; college athletes. I recently heard how there is some talk of giving top college athletes money, paying them. The reason behind this is because these students, i.e. the football or basketball players, are bringing in millions and millions of dollars for the college. Grant you, that statement is true, but to me these college athletes are already making money in that they are getting a free education! That is an average of a $100,000 savings. They will graduate with no student loans – a clean slate! As someone who has a student loan, I must say not having a loan would be amazing! Most of these kids, these college sports kids, will not make it to the big professional leagues, so they should consider it a great gift to get a free education. The school is setting them up to make money, to go right into the plus column upon graduation. That is a great pay-off as far as I’m concerned, better than money that most of these kids would squander anyway.

9 Comments:

OpenID CoffeeDrinkingWoman said...

I'd like to be free of my student loan as well! I haven't the faintest idea how I will pay for college for my kids... but I had better figure it out soon, as my oldest is in middle school, and college isn't that far off. (found you via Joe in Vegas)

12:24 PM  
Blogger secret agent woman said...

I'm completely opposed. Both for the reason you state and because professional athletes are entertainers and not particularly adding value to the world. Why aren't they funding the e kids who become physical and mental health care providers, teachers, and so on? Those who actually give back to the world through their work. II know a lot of sports fans won't agree with me on this.)

9:29 PM  
Blogger montanna said...

In this kind of dilemma guaranteed payday loans can sound like a good deal in all most all critical situation that happen once or a while in our life which is unexpected.

3:18 AM  
Blogger JoeinVegas said...

I am impressed that you are starting early, and hope that you do end up with a kid that wants college and uses the money.

10:30 AM  
Blogger Merci said...

It's OK if you save most, but not all of the funds baby will need. It's a good thing for the student to contribute a bit to the cost of their education.

And I agree completely with Secret Agent Woman.

11:14 PM  
Blogger Brenda said...

As with medical care, the U.S. is irresponsible concerning Education. We're probably the only civilized country in the World that doesn't provide either free or affordable BOTH for their citizens. It's so sad.

11:47 AM  
Blogger Darla D said...

Our society has some pretty skewed priorities!

4:45 PM  
Blogger Virginia Gal said...

Coffee Drink - welcome! Yes, it is scary to figure out how to afford this stuff!

Secret Agent - yes it would be nice if the kids who were going to be the real future leaders of this country in science were given free college educations.

Joe - oh we are definitely going to groom her to want to go to college.

Merci - lol, she will definitely have to contribute, sadly school is going to be more than I can imagine.

Brenda - I can't agree with you more! In Denmark they get free education and they are the happiest people in the world. I just think its sad that we don't value education enough. Sad.

Darla - amen sister!

11:19 PM  
Blogger Hina said...

my only argument to that is that while it isn't fair that you get rewarded for being able to throw a ball or whatever, the NCAA rules are pretty clear about not taking money, yet a lot of the kids do. It is a cycle they have to clean up. The only real solution is to eliminate any sports in college and create true minor leagues, but I doubt that will ever happen.

10:10 AM  

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