Louis Divorce Mediation ~ Online and In-Person Mediation in Chicago
  • Home
  • About David
    • Approach & Background
    • David Louis' Personal Story
    • Professional Experience
    • Training Log
  • Benefits of Mediation
  • How Mediation Works
    • Divorce Mediation Process and Outcomes
    • Financial Analysis
    • Parenting Plan
  • Resources
  • Blog
  • Contact
Picture

David’​s Blog

Plan Now for Your Children’s College Education

4/8/2021

0 Comments

 
Picture
For many families, the future cost of a college education for their children will overshadow all other childhood expenses. So this is an important conversation for parents whether they are married or divorcing. In the circumstance of divorce mediation, my role is to place the topic front and center for discussion.

In the circumstance of divorce mediation, my role is to place the topic of financing your children’s college education front and center for discussion.

In my view, financial decision-making involving college education costs centers around three topics.

Saving for Future College Expenses

According to U.S. News & World Report, the average cost for tuition and fees alone for the 2020-21 academic year was $41,411 at private colleges and $11,171 for in-state residents at public colleges. This does not include room and board and other expenses, such as travel and books. For a four-year education, the price tag is substantial.

Where resources allow, many families will commit to a savings strategy for college. Many take advantage of 529 college savings plans, which allow for the earnings on savings to be tax-free as long as these funds are used for qualified educational expenses. For families who expect to qualify for financial aid, maintaining a 529 account may result in a small reduction in a future financial aid package.

Divorce mediation involves planning for the future of two separate households, so a college savings plan—when feasible in light of other expenses—will form an important component of the overall parental financial plan.

Parental vs. Student Financial Responsibility

Each family is faced with a decision that revolves around how much of college should be paid for by parents and how much by the child who is attending college. In my experience, there are many factors that may influence these decisions:
  1. If the parents attended college, how was it paid for?
  2. How much “buy-in” do parents expect from their children for college?
  3. Are there savings or other resources (for example, from grandparents) available?
  4. Will the child qualify for grants or scholarships, either based on financial need or on merit?
  5. Viewpoints on student loan debt. (Note: according to U.S. News & World Report,  the average student loan debt for an undergraduate education is now over $30,000.)

Allocating the Parental Contribution to College Costs

Once parents have determined how much they are willing/able to spend for college education, they must also decide how to split the cost. This may create discomfort, as there can be uncertainty about future resources that makes parents reluctant to commit to future expenses at the time of their divorce. When parents are able to make the commitment, other issues that need to be addressed will include how existing parental savings will factor into this split and how income and resources will affect the split.

Watch for the next post, where I will share alternative methods within mediation for approaching these important decisions about financing a college education.
0 Comments



Leave a Reply.

    Contact David

    Archives

    November 2023
    September 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020

    Categories

    All

    RSS Feed

David Louis, MPA, CDFA®   •   Louis Mediation Services   •   Chicago
Picture
[email protected]
3838 N Ravenswood Ave., Suite 257, Chicago, IL  60613
Picture
(773) 633-0256
Copyright © 2025
  • Home
  • About David
    • Approach & Background
    • David Louis' Personal Story
    • Professional Experience
    • Training Log
  • Benefits of Mediation
  • How Mediation Works
    • Divorce Mediation Process and Outcomes
    • Financial Analysis
    • Parenting Plan
  • Resources
  • Blog
  • Contact