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and board, transportation, etc.Imagine if I hadn’t done some research to confirm she will qualify for in-state tuition?I was already looking to sell one of our rental properties to pay for her school, but now I won’t have to.Make sure you do the research to get the residency you deserve by law in your state. That way you can hopefully put your kids through school without nearly as much belt-tightening or student loans.<h2 id="95eb">Keeping Costs Down For University</h2>On this same line, I wanted to share some other thoughts about paying for university:<ul><li>attend in-state public schools rather than out-of-state or private schools (unless you get a free ride at MIT, then go!)</li><li>consider starting at community college, which is significantly cheaper than four-year institutions</li><li>pick a major with corporate demand, as they will often have more scholarships and internships that can help pay your way</li><li>open a 529 plan when your kids are young to invest some money over time in low-cost index funds that can be used tax-free for qualified educational expenses</li><li>working part-time can bring in some income and in some situations can waive out of state residency for on-campus jobs, giving the student in-state tuition</li><li>live at home to further save on room and board</li></ul>None of these are silver bullets, but they can all help make college a bit more affordable for most families.Living at home, attending in-state public schools (even community college), studying engineering or another in-demand subject, working part-time, and having something in a 529 plan can help you deal with the education inflation and help get your kids a head start.By that same token, doing things like attending a private or out-of-state school, studying subjects without good job prospects, etc. will increase your costs significantly, pushing many families to take on student debt.Student debt is a ball and chain hanging around the neck of your kids as they start their new life. It should be avoided as much as possible.College degrees remain an important step in the economic food chain. As per the same article by Forbes, now 70% of “good jobs” require a college degree. They define “good jobs” as ones that start at least $35,000 per year and eventually pay between$ 45,000 and $55,000 per year in current dollars.Basically, middle-class jobs.<h2 id="f66b">Conclusion</h2>So ensure you researc

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h your state’s residency rules to make sure you get in-state tuition.Then work on convincing your kid to study in-state, maybe even living at home if you guys can still stand each other!Also, what you study matters. I had friends from high school that took on student debt to get a degree, then went back to work waiting tables.Because I studied engineering, I was able to pay for my tuition with scholarships and room/board with summer internships, allowing me to graduate from an in-state public school with no debt.I love English, History, Anthropology, and other subjects. But I read them in my spare time.Trying to make money with a History degree is VERY difficult. Taking on student debt to get a degree with few job prospects is a recipe for long-term financial struggle.If you can help your kids get a good start in life by getting a degree with job prospects and little to no student debt, you will be doing them a tremendous favor.They can start building wealth as soon as they get out, spending less than they earn and investing the rest in assets that will help them financially.Best of luck and let me know how I can help!<h1 id="7e7e">Building Arks</h1>After struggling to build wealth early in my career while following traditional financial advice, I set out on a path to learn about investing. Over a decade later, I’m financially secure and working towards full financial independence through real estate and the stock market. I have succeeded in building my financial ark to help me weather whatever storms may come.I founded <a href="https://buildingarks.medium.com/about-building-arks-fa2edcf2f584">Building Arks</a> to help busy professionals like you ignore mainstream advice and build real wealth.<figure id="1e3e"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/0*NPQYy9CvEEytLyx8.jpeg"><figcaption>Image by <a href="https://pixabay.com/users/jeffjacobs1990-7438739/">jeffjacobs1990</a> on pixabay</figcaption></figure>I have no affiliation with any sites listed, nor do I make money from any partners or recommendations in my articles (other than Medium). I am not a lawyer, accountant, or certified financial planner. All material is presented in good faith for informational purposes only based on my knowledge and experience. It is not intended to replace professional advice. You should always consult an expert before making any legal, tax, or financial decisions.</article></body>

I Just Saved $120,000 On College Tuition

How to beat education inflation.

College has gotten more and more expensive over the past few decades. As per this article from Forbes, between 1985 and 2018, the costs of attending a four-year college in the US increased by twice the rate of inflation.

Looking for ways to save money on college is important, and I wanted to share with you one big one that is sometimes forgotten. I will also share some additional tips for how to afford university for your kids.

Residency for public universities.

Public schools are funded by state governments, and those governments raise taxes from their residents to help fund the schools.

So public universities have a tiered tuition system: one low (subsidized ) cost for state residents, and one high (unsubsidized) cost for non-residents.

Every state has its own rules about how to qualify to be a resident, and I highly suggest anyone with kids going to college pay careful attention to these rules.

Residency

I was doing some research this week as my eldest is finished 9th grade, so we need to start thinking about her university.

Our family situation is complicated: we live overseas, our eldest is our niece but we have legal guardianship, etc.

So I had always assumed that if/when she went to school back in the US, she would be forced to pay out-of-state tuition.

However, this week I read (and confirmed with a university registrar’s office) that as her legal guardians, she can use our residency status.

Since we are residents of Texas, that gives her residency in Texas as well, allowing her to pay in-state tuition at public universities.

To see how important that is, here is the annual tuition at the University of Texas in Austin:

in-state tuition = $12,000
out-of-state tuition = $43,500

That’s around $30,000 PER YEAR! Or $120,000 for a 4-year degree.

And that is just tuition. It doesn’t include room and board, transportation, etc.

Imagine if I hadn’t done some research to confirm she will qualify for in-state tuition?

I was already looking to sell one of our rental properties to pay for her school, but now I won’t have to.

Make sure you do the research to get the residency you deserve by law in your state. That way you can hopefully put your kids through school without nearly as much belt-tightening or student loans.

Keeping Costs Down For University

On this same line, I wanted to share some other thoughts about paying for university:

attend in-state public schools rather than out-of-state or private schools (unless you get a free ride at MIT, then go!)
consider starting at community college, which is significantly cheaper than four-year institutions
pick a major with corporate demand, as they will often have more scholarships and internships that can help pay your way
open a 529 plan when your kids are young to invest some money over time in low-cost index funds that can be used tax-free for qualified educational expenses
working part-time can bring in some income and in some situations can waive out of state residency for on-campus jobs, giving the student in-state tuition
live at home to further save on room and board

None of these are silver bullets, but they can all help make college a bit more affordable for most families.

Living at home, attending in-state public schools (even community college), studying engineering or another in-demand subject, working part-time, and having something in a 529 plan can help you deal with the education inflation and help get your kids a head start.

By that same token, doing things like attending a private or out-of-state school, studying subjects without good job prospects, etc. will increase your costs significantly, pushing many families to take on student debt.

Student debt is a ball and chain hanging around the neck of your kids as they start their new life. It should be avoided as much as possible.

College degrees remain an important step in the economic food chain. As per the same article by Forbes, now 70% of “good jobs” require a college degree. They define “good jobs” as ones that start at least $35,000 per year and eventually pay between $45,000 and $55,000 per year in current dollars.

Basically, middle-class jobs.

Conclusion

So ensure you research your state’s residency rules to make sure you get in-state tuition.

Then work on convincing your kid to study in-state, maybe even living at home if you guys can still stand each other!

Also, what you study matters. I had friends from high school that took on student debt to get a degree, then went back to work waiting tables.

Because I studied engineering, I was able to pay for my tuition with scholarships and room/board with summer internships, allowing me to graduate from an in-state public school with no debt.

I love English, History, Anthropology, and other subjects. But I read them in my spare time.

Trying to make money with a History degree is VERY difficult. Taking on student debt to get a degree with few job prospects is a recipe for long-term financial struggle.

If you can help your kids get a good start in life by getting a degree with job prospects and little to no student debt, you will be doing them a tremendous favor.

They can start building wealth as soon as they get out, spending less than they earn and investing the rest in assets that will help them financially.

Best of luck and let me know how I can help!

Building Arks

After struggling to build wealth early in my career while following traditional financial advice, I set out on a path to learn about investing. Over a decade later, I’m financially secure and working towards full financial independence through real estate and the stock market. I have succeeded in building my financial ark to help me weather whatever storms may come.

I founded Building Arks to help busy professionals like you ignore mainstream advice and build real wealth.

I have no affiliation with any sites listed, nor do I make money from any partners or recommendations in my articles (other than Medium). I am not a lawyer, accountant, or certified financial planner. All material is presented in good faith for informational purposes only based on my knowledge and experience. It is not intended to replace professional advice. You should always consult an expert before making any legal, tax, or financial decisions.