If you’re planning on going to a college like Harvard or Stanford, you might need financial aid:
Harvard: $62,000 tuition/yr; Financial Aid Eligible for total wage under $150,000
Stanford: $42,000 tuition/yr; Financial Aid Eligible for total wage under $100,000 (Estimation)
If you need financial aid, the scholarship will depend on your wages/income and taxes, etc. Harvard and Stanford both have a handy calculator for this.
Let’s say Person A is qualified to go to Harvard, but his parents don’t have the money. They fill out the calculator and they expect to pay $13,000/yr because their parents earn about $70000 per year. Person A also may work part-time with Harvard so he can get $1000 every year, to pay the remaining $1000/yr.
However, Person A’s parents don’t know whether to save up for the tuition or put the money in the retirement account and they will use the money. I, in order to solve the problem, filled out the calculator twice and looked at the difference. If you save up $10,000, the price will go up $4000 to $13000, while if you don’t put that in, it will be $8000.
However, putting the money in retirement would be risky because the money could be earned or lost.
How will you pay off college? Speak in the comments!