Release List Reviews Shop Join News DVD Giveaways Video Games Advertise
DVD Reviews | Theatrical Reviews | Adult DVD Reviews | Video Game Reviews | Price Search Buy Stuff Here
DVD Talk
DVD Reviews DVD Talk Headlines HD Reviews


Add to My Yahoo! - RSS 2.0 - RSS 2.0 - DVD Talk Podcast RSS -


Go Back   DVD Talk Forum > General Discussions > Other Talk

Other Talk "Otterville" plus Religion/Politics

Reply
 
Thread Tools
Old 06-24-06, 01:29 PM   #1
kvrdave
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 81,670
Prepaying tuition for you kids....WOW

http://www.get.wa.gov/

In Washington State they have a deal where you can prepay for your child's education. You get a little discount even. A full year's tuition at the University of Washington is about $10,000. You can buy the tuition (which is equal to 100 GET points) for about $7,000. The cost of the points goes up with tuition.

You may end up going to another state school that has less tuition costs. If you went to Central Washington, you would spend about 80 points, and the rest could be used for books, etc. If you decided to go to Gonzaga or other private school, you still get the monetary equivilent of the points, but they have to be used on tuition somewhere. And you can buy up to 500 points per kid, so if your kid is dumb, he can take an extra year, or even spend it on graduate school. If they don't ever go, they can get the money refunded as well, so there really isn't any risk, unless you believe that tuition will not continue to rise.

Anyway, this looks like one hell of a deal. With my 3 little boys, I could prepay 5 years of tuition for each and it would cost $105,000. That is a buttload of money, but I don't have to buy it all now. And tuition costs I am looking at are 12-18 years in the future. 5 years at the U for each boy (don't worry, I wouldln't seriously consider sending them to UW ) today would cost about $50,000 ($150,000 total), and tuition looks like it will double in 10 years (if it stays on pace) and nearly triple at 17 years.

I forget the numbers, but it seemed like it worked out to about a 10% return with those assumptions. And the real advantage is having the weight of the thing off your sholders and knowing that college is paid for.

Anyone do this? Other states have something similar? Anything you can think of that I may be missing?
__________________
Of all tyrannies a tyranny sincerely exercised for the good of its victim may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baronís cruelty may sometimes sleep, his cupidity may at some point be satiated, but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience. - C.S. Lewis
  Reply With Quote
Old 06-24-06, 01:39 PM   #2
Lateralus
DVD Talk Hall of Fame
 
Lateralus's Avatar
 
Join Date: Jun 2001
Location: Valley of Megiddo
Posts: 9,533
Yeah Pennsylvania has something similar. They have 3 levels, state school level, semi-state school level (Pittsburgh + Penn State) and private school level. The only drawback is that the school that your child has to attend must be in Pennsylvania. Suppose you put $30,000 down when your child is born and then college costs go up 12% next year, then you get 12% on your money. And you keep on doing that until your kid is ready for school. So your $30,000 will buy you 2 years of schooling now, and it will by you 2 years of schooling 18 years from now... which is a pretty good idea if you can afford it.

I see a couple problems, what happens if your kids don't go to college or they get scholarships?
  Reply With Quote
Old 06-24-06, 01:41 PM   #3
Green Smurf
DVD Talk Special Edition
 
Join Date: Jun 2005
Location: Summerfest
Posts: 1,227
Sounds like a fantastic idea! I don't believe we have that in Wisconsin, but still a good idea.
__________________
I'm baaaaack. Selling my belongings so I can move on ebay Rainbowbrite716
Xbox gamertag: Dr Lori Won / PS3 Jedi_Lori_aye
Don't confuse my point of view with cynicism. The real cynics are the ones who tell you that everything's gonna be all right.-George Carlin
  Reply With Quote
Old 06-24-06, 01:45 PM   #4
kvrdave
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 81,670
Quote:
Originally Posted by Lateralus
I see a couple problems, what happens if your kids don't go to college or they get scholarships?
It can be cashed out 2 years after they graduate from highschool at the value of whenever they take the money back out, so you don't really lose. If you get scholarships, the points can be saved for more schooling or can be used for books and living expenses, but you can only use a total of 100 per year.
__________________
Of all tyrannies a tyranny sincerely exercised for the good of its victim may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baronís cruelty may sometimes sleep, his cupidity may at some point be satiated, but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience. - C.S. Lewis
  Reply With Quote
Old 06-24-06, 01:48 PM   #5
shoppingbear
DVD Talk Ultimate Edition
 
Join Date: May 2003
Location: Lounging on the beach in L.A., frappucino in hand...
Posts: 4,273
Quote:
Originally Posted by kvrdave
5 years at the U for each boy (don't worry, I wouldln't seriously consider sending them to UW )....
HEY!

You should be so blessed, to have one of your boys trade up to a real university...


Quote:
Originally Posted by kvrdave
Anyone do this? Other states have something similar? Anything you can think of that I may be missing?
A close friend and her hubby are doing this for their kids, they researched it and I remember them saying most states have this now. The nice thing is, if this is the same program they're doing, you can have family buy the points as gifts, also, so if someone (grandparents, godparents, etc) wants to contribute to the boys' education, they can.

.
__________________
"Say what you will... it's not where you meet, but where you go from there..." -- Thor Simpson

"There is added visual entertainment with the flamethrower though. It's like a field of lighting bugs roaming merrily around the basement except, of course, they are on fire." --Dave99
"Here comes the battle of the stupid analogies" - Al Bundy "Otters are masters of stupid analogies." - Abelkems
  Reply With Quote
Old 06-24-06, 01:52 PM   #6
mosquitobite
DVD Talk Limited Edition
 
Join Date: Nov 2004
Location: Pleasantville - in black & white ;P
Posts: 5,970
Dave Ramsey doesn't recommend these set ups. He said the same thing about prepaying for your funeral.

Just save the money instead. Unless inflation out costs the money you could make elsewhere, you're losing money.


If you have $50,000 to set aside now, why are you not buying a house or investing it in the stock market instead?
__________________
"Americans are so enamored of equality, they would rather be equal in slavery than unequal in freedom." Alexis de Tocqueville (1805-1859) French historian.
  Reply With Quote
Old 06-24-06, 02:11 PM   #7
Duran
DVD Talk Hall of Fame
 
Duran's Avatar
 
Join Date: Jul 1999
Location: Columbia, MD
Posts: 8,175
Quote:
Originally Posted by mosquitobite
If you have $50,000 to set aside now, why are you not buying a house or investing it in the stock market instead?
I think he should buy another horse.
__________________
Go Terps!
  Reply With Quote
Old 06-24-06, 02:15 PM   #8
kvrdave
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 81,670
Quote:
Originally Posted by mosquitobite
Dave Ramsey doesn't recommend these set ups. He said the same thing about prepaying for your funeral.
I find Dave Ramsey to suck ass, but that's me.

Quote:
Just save the money instead. Unless inflation out costs the money you could make elsewhere, you're losing money.
If you could have done this and prepaid for gas or health insurance, you would have done an amazing thing for yourself. College tuition goes up faster than inflation.....much.

Quote:
If you have $50,000 to set aside now, why are you not buying a house or investing it in the stock market instead?
Because I have too many houses.
__________________
Of all tyrannies a tyranny sincerely exercised for the good of its victim may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baronís cruelty may sometimes sleep, his cupidity may at some point be satiated, but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience. - C.S. Lewis
  Reply With Quote
Old 06-24-06, 03:11 PM   #9
Bandoman
DVD Talk Hero
 
Bandoman's Avatar
 
Join Date: Oct 2000
Location: a small cottage on a cul de sac in the lower pits of hell.
Posts: 28,679
My kids are going to be male prostitutes. The only school you need for that is the school of hard knocks. And, perhaps, the school tha tells you where to get your antibiotics.
__________________
"...Bando...you are perfect and awesome." - 4KRG

  Reply With Quote
Old 06-24-06, 03:41 PM   #10
ShallowHal
Guest
 
Join Date: Sep 2005
Posts: 1,699
Quote:
Originally Posted by kvrdave
Because I have too many houses.
I'll take one off your hands, got any sweet deals?
  Reply With Quote
Old 06-24-06, 04:04 PM   #11
das Monkey
DVD Talk Hero
 
das Monkey's Avatar
 
Join Date: May 1999
Location: Atlanta, GA
Posts: 35,881
This is a great idea. This way your children can be anything they want to be!*

das

* Offer not valid in other 49 states or the world at large
__________________
Dragon*Con 2004 - 2005 - Lost in Hawaii - DVD Reviews

You are not entitled to your own opinion. You are only entitled to your own informed opinion. -- Harlan Ellison quoting Gustave Flaubert
  Reply With Quote
Old 06-24-06, 04:18 PM   #12
Jason
DVD Talk Legend
 
Join Date: Aug 1999
Location: Lower Gum Curve
Posts: 16,294
In all seriousness, what if they end up not being college material? Can you sell your points or get a refund?
__________________
You win again, gravity!
  Reply With Quote
Old 06-24-06, 04:41 PM   #13
Brain Stew
DVD Talk Hall of Fame
 
Join Date: Apr 2002
Location: Philadelphia
Posts: 8,572
My dad bought TAP (Tuition Account Program) credits for me to go to a state school here in PA and they have worked out well. I am the only one of my friends who has no college debt.
__________________
"And if you don't underestimate me, I won't underestimate you." - Bob Dylan
  Reply With Quote
Old 06-24-06, 04:41 PM   #14
NotThatGuy
DVD Talk Hero
 
Join Date: Jun 2000
Location: Words
Posts: 28,081
They really seem like a nice investment.

-p
__________________
Everyone is against racial profiling....unless it is called Affirmative Action. -kvrdave
Coors Light is sex in a canoe. Natural Light is masturbating in a puddle. -The Bus
  Reply With Quote
Old 06-24-06, 05:30 PM   #15
kvrdave
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 81,670
Quote:
Originally Posted by Jason
In all seriousness, what if they end up not being college material? Can you sell your points or get a refund?
Quote:
Originally Posted by Lateralus
I see a couple problems, what happens if your kids don't go to college or they get scholarships?
Quote:
Originally Posted by kvrdave
It can be cashed out 2 years after they graduate from highschool at the value of whenever they take the money back out, so you don't really lose. If you get scholarships, the points can be saved for more schooling or can be used for books and living expenses, but you can only use a total of 100 per year.
Yep
__________________
Of all tyrannies a tyranny sincerely exercised for the good of its victim may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baronís cruelty may sometimes sleep, his cupidity may at some point be satiated, but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience. - C.S. Lewis
  Reply With Quote
Old 06-24-06, 05:51 PM   #16
Breakfast with Girls
DVD Talk Legend
 
Join Date: Jun 2000
Location: Seattle
Posts: 16,037
Quote:
Originally Posted by kvrdave
And you can buy up to 500 points per kid, so if your kid is dumb, he can take an extra year, or even spend it on graduate school.
Hey!

A coworker of mine is doing this exact thing for his son. Currently he has 1 year paid for, I believe.

Personally, I don't agree with parents paying for college tuition. Kids should have to work one and sometimes two jobs and still graduate under a mountain of debt like I had to.

Edit: Morbid thought: what if someone pays for four or five years of college education for their kid and then he dies in a car wreck or something?
__________________
"Thus spoke BWG." - Groucho
  Reply With Quote
Old 06-24-06, 07:10 PM   #17
illini420
Senior Member
 
Join Date: Jun 2005
Location: Malibu, CA
Posts: 535
Quote:
Originally Posted by Breakfast with Girls
Kids should have to work one and sometimes two jobs and still graduate under a mountain of debt like I had to.

Agreed, my parents had the money, but didn't pay for any of my school. I put myself through 8 years of college and grad school and now have nearly $200k in loan debt, but I also have a good job now too. And my parents are living it up in Maui now, probably because they didn't pay for college for me or my sis.

One big positive was that paying for it myself really gave me a bigger incentive to try hard instead of screwing around.

But if you're going to put your kids through school, that choice is yours alone. I still disagree with prepaying though. Seems to take a lot of choice out of your child's hands on what they want to do, where they want to go or whether they want to go. Seems like the same could be accomplished by saving the money in a good diversified account of stocks and bonds, then you could use the money for whatever you want, whenever you want.
  Reply With Quote
Old 06-24-06, 08:24 PM   #18
kenbuzz
DVD Talk Legend
 
kenbuzz's Avatar
 
Join Date: Jun 2000
Location: Bloomington, IN "Who Dey!"
Posts: 16,283
$105K to fully pay for THREE tuition bills... a bargain! Our one 5 y/o is gonna end up costing $80-100K, depending on the breaks and whether 4 years will be enough to get him through.
__________________
(Twitter) Janay Rice says she deeply regrets the role she played the night of the incident. - Baltimore Ravens, 5-23-14
Sweed goes down with an achillies injury. As a Steelers fan, this is great news. - Tarantino, 5-02-10
If Tebow beats the Steelers today, I will post a pic of me Tebow'ing in one of my Pittsburgh jerseys. - Tarantino, 1-08-12
  Reply With Quote
Old 06-24-06, 09:49 PM   #19
DVD Josh
DVD Talk Legend
 
Join Date: Dec 1999
Location: Hail to the Redskins!
Posts: 19,815
In my mind a 529 is a much better use of that money. 18 years of compounding interest will save you a ton more than $3K a year.
__________________
***DVDTALK GOLD TRADER***

http://www.invelos.com/dvdcollection.aspx/cwrujosh
  Reply With Quote
Old 06-24-06, 11:21 PM   #20
kvrdave
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 81,670
Quote:
Originally Posted by Breakfast with Girls
Hey!

A coworker of mine is doing this exact thing for his son. Currently he has 1 year paid for, I believe.

Personally, I don't agree with parents paying for college tuition. Kids should have to work one and sometimes two jobs and still graduate under a mountain of debt like I had to.

Edit: Morbid thought: what if someone pays for four or five years of college education for their kid and then he dies in a car wreck or something?
If the kid dies, you can transfer it to another kid, or cash it out.

My dad felt the same way you do, but then he went to West Point. My mom went back to work to make sure they paid for us to go to college. The rules were pretty simple. They didn't pay for average grades and they only paid 4 years. Years later I would find my sister's transcripts and how long she went to school and find out that the deal with her was, "Please, for the love of all that is holy, just graduate."

I still want to pay for theirs. I didn't use to when they were just "in theory" but once they were born, I wanted to.
__________________
Of all tyrannies a tyranny sincerely exercised for the good of its victim may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baronís cruelty may sometimes sleep, his cupidity may at some point be satiated, but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience. - C.S. Lewis
  Reply With Quote
Old 06-24-06, 11:27 PM   #21
kvrdave
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 81,670
Quote:
Originally Posted by DVD Josh
In my mind a 529 is a much better use of that money. 18 years of compounding interest will save you a ton more than $3K a year.

You are saving $3k in the first year. Every year tuition goes up, you are saving that much more.

I talked to an accountant about it, and he said it was effectively like paying forty cents on the dollar for tuition.
__________________
Of all tyrannies a tyranny sincerely exercised for the good of its victim may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baronís cruelty may sometimes sleep, his cupidity may at some point be satiated, but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience. - C.S. Lewis
  Reply With Quote
Old 06-24-06, 11:30 PM   #22
PopcornTreeCt
DVD Talk Hero
 
PopcornTreeCt's Avatar
 
Join Date: Feb 2004
Location: Central Florida
Posts: 25,827
Yeah my parents did it for me and my brothers when we were growing up here in Florida. It has worked out pretty damn awesome for us.
  Reply With Quote
Old 06-24-06, 11:33 PM   #23
xmiyux
DVD Talk Hall of Fame
 
xmiyux's Avatar
 
Join Date: May 2000
Location: WV
Posts: 9,693
I'm torn on the issue of paying for my daughter's schooling. My debt for school (my parents didn't help out at all) is obnoxious and at times overwhelming. However i worked at school and worked to get a career. They paid for all the schooling for a brother of mine and he dropped out and didn't try at all in school because he had nothing vested in it. Because of this i haven't decided what is the good decision for me.
__________________
I'm nostalgic for conversations I had yesterday. I've begun reminiscing events before they even occur. I'm reminiscing this right now. I can't go to the bar because I've already looked back on it in my memory... and I didn't have a good time.

Live gamertag: xmiyux
  Reply With Quote
Old 06-25-06, 08:09 AM   #24
Lord Rick
DVD Talk Limited Edition
 
Join Date: Aug 1999
Posts: 5,191
Dave -

Am I understanding this correctly - if when your kid turns goes to college, and he goes out of state, so you don't use the points, that you can cash out at the value of tuition AT THAT TIME? That would give you a guaranteed 10% return for all those years, right?

If so, this seems like a no-brainer.

Here in SC, the deal used to be that you cashed out at the value of your contributions, which means you got no return on your money, and with inflation you lost money. I haven't looked into what the plan is these days, mainly because I can't afford to buy in right now.
  Reply With Quote
Old 06-25-06, 08:11 AM   #25
Lord Rick
DVD Talk Limited Edition
 
Join Date: Aug 1999
Posts: 5,191
Quote:
Originally Posted by xmiyux
I'm torn on the issue of paying for my daughter's schooling. My debt for school (my parents didn't help out at all) is obnoxious and at times overwhelming. However i worked at school and worked to get a career. They paid for all the schooling for a brother of mine and he dropped out and didn't try at all in school because he had nothing vested in it. Because of this i haven't decided what is the good decision for me.
I'm going to do what my old boss did.

He paid for half of his kid's college. He had the kid take out loans for the other half. If the kid got good grades, my boss would pay off the loans. If the kid partied, he'd be on the hook for all that money. This made the kid have some skin in the game, and worked out great.
  Reply With Quote
Sponsored Links
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -5. The time now is 12:33 PM.

Rules - DVD Talk - Archive - Privacy Statement - Top

Powered by vBulletin® Version 3.7.2
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.2.0
Copyright 2011 DVDTalk.com All Rights Reserved. Privacy Policy and Terms of Use.