Potential sources include employers, clubs, professional associations in the intended field of study, local businesses, and church groups. Schools compute what you can afford to contribute mainly on the basis of your total household income. A high-income family can expect to pay the full cost, whether or not they have savings. The formula used to determine eligibility for federal financial aid counts no more than 5.65 percent of parents' assets as available to meet education expenses, though 35 percent of any money held in your child's name is fair game. Most public universities don't count home equity, and retirement accounts are off-limits.
Retirement comes first.
Remember that most colleges don't require you to tap these funds to pay their bills, and you're likely to live far longer in retirement than your kids will on campus. How much you actually pay will depend, of course, on the total tuition and fees of the school your child attends. That may pay for a year of commuting to a local public university, in which case this family would he expected to meet all of the costs. Negotiate what's in the package. Each school offers its own combination of grants, on-campus employment and loans.