Was talking to a friend last week. Their daughter had 3 days to decide whether to go to U of Illinois. The problem was the family was out of state and tuition was $55K a year.
Their kid had applied to several in state schools in Michigan, but didn't get into the one they wanted to and wanted to go to Illinois. I was wondering how the family got themselves into the position of having 3 days to make a major decision and not having some ground rules beforehand that said they weren't paying $55K a year.
So, I came up with a written document spelling out my wife and my expectation of our kids college experience. Our kids are 16, 14 and 10.
Both of our parents said they'd pay for college, and both of us did a lot of experimenting with alcohol and weren't good students. We really wanted to protect from paying for that. Hence, some of the language in the document.
I'm curious if other parents have written expectations and if so, whether they'd be willing to post them here.
ORIGINAL CONTRACT
1) We will use your money first.
2) You will need to get a job in the summers, starting the year you are 16, unless there is a reason this is a non optimized idea.
3) Mom and I will pay for your college if the amount is the same or less than the University of Michigan.
(Picture showing Michigan tuition, room and board at roughly $28K a year.)
4) To get 100% of your college costs, you will need to get an A average.
5) To get 85% of the costs, you will need to get a B average.
6) To get 50% of the cost, you will need to get a C average.
7) At the end of 4 years of college, you are paying 100%, no matter what your grades are.
If you are considering a college that costs more than University of Michigan, you will need to cover any amount of money over the above amount with scholarships, loans or grants. You will need a plan before a deposit will be paid to any college.
If you want to go to graduate school, you will need to pay for it. You kids are smart and can figure out if the cost of the graduate degree is worth the expense.
After college, you will need to find a place to live. You will not be living at home.
The last line is actually not in the document yet, as I think I will let them know right before they leave for college. They will still have 4 years to come up with a plan.
And I already ran this by the wife and she is fine with it.
CONTRACT AFTER EXCELLENT MMM FORUM FEEDBACK.
1) There needs to be a reasonable plan. What are you going to do with your major in _____? What kinds of jobs are available for _____ majors and what do they pay? What is the job outlook?
2) We will use the money gifted to you first. Money you earn and save will be matched dollar for dollar for your contribution and spending money.
3) You will need to get a job in the summers, starting the year you are 16.
4) Mom and I will pay for up to 85% of your college if the amount is the same or less than the University of Michigan.
Chart showing roughly $27K a year room and board.
5) To get 85% of the costs, you will need to get a 3.0 or above.
6) To get 50% of the cost, you will need to get a 2.0 or above.
7) The percentage paid will be averaged for GPA between 2.0 and 3.0.
8) If you go to a particularly challenging school, or take a particularly challenging course, GPA tuition % can be negotiated.
9) Anything under 2.0, and you pay for the next semester you attend.
10) The percentage you get will be determined at the end of the semester for the next semester. The first semester you will get 85%.
11) At the end of 4 years of college, you are paying 100%, no matter what your grades are. The only exception is if you are in a 4 ½ or 5 year program.
12) Mom and I will give you 25% of any scholarships you get at the beginning of each semester, up to 25% of the above amounts.
13) Any money saved by taking college courses while in high school will be deducted from the amount you are required to put in.
If you are considering a college that costs more than University of Michigan, you will need to cover any amount of money over the above amount with scholarships, loans or grants. You will need a plan before a deposit will be paid to any college.
If you want to go to graduate school, you will need to pay for it. You kids are smart and can figure out if the cost of the graduate degree is worth the expense.