Dave Says: Keeping College Costs in Check

Dear Dave,

We live in Boston, and we’ve got three kids who are almost ready for college. My wife and I make about $114,000 a year combined, and that includes a $34,000 a year pension I receive. Should we use the pension money to pay for their tuition, or should we let them take out student loans?

- Geoff

Dear Geoff,

There’s no way I’m going to send anyone into student loan debt, especially when the household income is in the six-figure range!

Now, that assumes the kids choose a college you can afford, but with your income, you guys could handle tuition at most state colleges. And that means all the kiddos are going to have to pick a reasonably-priced school if they expect you to foot the bill. We’ve got to use a little common sense here.

You guys are doing okay, but you can’t afford to send these kids to $30,000 a year schools. All this will be hitting you at about the same time, so I want you to cash flow this thing, and pay as you go along. College is great, but you need to invest your money into something that fits your budget!

- Dave