College Funding Plan — Two Kids in College
Updated 2026-03-29 | Kid 1: CU Boulder Fall 2027 | Kid 2: Unknown school Fall 2028
The Total Cost
Kid 2's school is TBD — using $64,452 as a planning assumption. Update when known.
| Year | Kid 1 | Kid 2 | Annual Total | Cumulative |
|---|---|---|---|---|
| 2027–28 | $64,452 | — | $64,452 | $64,452 |
| 2028–29 | $64,452 | $64,452 | $128,904 | $193,356 |
| 2029–30 | $64,452 | $64,452 | $128,904 | $322,260 |
| 2030–31 | $64,452 | $64,452 | $128,904 | $451,164 |
| 2031–32 | — | $64,452 | $64,452 | $515,616 |
5-year total: $515,616
The overlap years (2028–2031) are the hard part: $128,904/yr for three years = $386,712.
Assumption on SLUH: Budget shows $3,300/mo for SLUH — assumed to cover both boys at a combined/sibling rate. When Kid 1 leaves (May 2027), SLUH drops to ~$1,650/mo for Kid 2. When Kid 2 leaves (May 2028), SLUH goes to $0. Confirm this is correct.
What You Have
529 Accounts
| Kid 1 | Kid 2 | |
|---|---|---|
| Balance today | $25,000 | $25,000 |
| Growth to first use (7%/yr) | ~$27,600 (18 mo) | ~$28,600 (24 mo) |
| New contributions (see Phase A) | ~$18,000 | ~$18,000 |
| Total at start of use | ~$46,000 | ~$47,000 |
529 Contribution Strategy (Phase A, Aug 2026–Jul 2028)
Front-load Kid 1, then pivot to Kid 2:
| Period | Monthly | To |
|---|---|---|
| Aug 2026–Jul 2027 | $1,500 | Kid 1 529 |
| Aug 2027–Jul 2028 | $1,500 | Kid 2 529 |
Missouri state tax deduction: up to $8,000/yr per beneficiary — worth ~$768/yr in state tax savings at current rates.
Year-by-Year Cash Flow
Baseline (post-debt, post-SLUH)
| Monthly | Annual | |
|---|---|---|
| Household income | $19,383 | $232,596 |
| Fixed costs (no CC, no SLUH) | $5,449 | $65,388 |
| Essential variable | $3,800 | $45,600 |
| Discretionary | $2,425 | $29,100 |
| Available before priorities | $7,709 | $92,508 |
Year 1 — 2027–28: Kid 1 only, Kid 2 still at SLUH
| Item | Annual |
|---|---|
| Available baseline | $92,508 |
| Kid 2 SLUH (10 months × $1,650) | -$16,500 |
| Emergency fund ($1,500/mo × 12) | -$18,000 |
| Extra loan paydown ($1,500/mo × 12) | -$18,000 |
| Available for college | $40,008 |
| Kid 1 cost | $64,452 |
| Gap → from Kid 1 529 | $24,444 |
Kid 1 529 at end of Year 1: $46,000 − $24,444 = ~$21,556
Year 2 — 2028–29: BOTH in college ← hardest year
| Item | Annual |
|---|---|
| Available baseline | $92,508 |
| Emergency fund (done ~Feb 2029, ~7 months left) | -$10,500 |
| Extra loan paydown ($1,500/mo × 12) | -$18,000 |
| Available for college | $64,008 |
| Both kids cost | $128,904 |
| Gap | $64,896 |
529 coverage:
- Kid 1 529 remaining: $21,556 → fully deployed
- Still need from Kid 2 529: $64,896 − $21,556 = $43,340
- Kid 2 529 remaining: $47,000 − $43,340 = $3,660
Year 3 — 2029–30: BOTH in college, emergency fund complete
| Item | Annual |
|---|---|
| Available baseline | $92,508 |
| Extra loan paydown ($1,500/mo × 12) | -$18,000 |
| Available for college | $74,508 |
| Both kids cost | $128,904 |
| Gap | $54,396 |
529 remaining: ~$3,660 → nearly depleted Parent PLUS needed: ~$50,736
Year 4 — 2030–31: BOTH in college
Same as Year 3: $54,396 gap, ~$0 529 remaining Parent PLUS needed: ~$54,396
Year 5 — 2031–32: Kid 2 only, Kid 1 done
| Item | Annual |
|---|---|
| Available baseline | $92,508 |
| Extra loan paydown ($1,500/mo × 12) | -$18,000 |
| Available for college | $74,508 |
| Kid 2 cost | $64,452 |
| Surplus | +$10,056 |
No loans needed.
Funding Summary
| Year | Cost | Cash Flow | 529 Used | Loans | Notes |
|---|---|---|---|---|---|
| 2027–28 | $64,452 | $40,008 | $24,444 | $0 | Kid 1 only |
| 2028–29 | $128,904 | $64,008 | $64,896 | $0 | SLUH ends; 529s absorb |
| 2029–30 | $128,904 | $74,508 | $3,660 | $50,736 | 529s nearly gone |
| 2030–31 | $128,904 | $74,508 | $0 | $54,396 | Full loan year |
| 2031–32 | $64,452 | $74,508 | $0 | $0 | Surplus year |
| Total | $515,616 | $327,540 | $93,000 | $105,132 |
Estimated Parent PLUS loans: ~$105,000 over 2 years (2029–31)
Parent PLUS at 8.05% over 10 years → ~$1,270/mo in repayment starting ~2031.
The Biggest Lever: Kid 2's School Choice
The $105K loan problem is almost entirely driven by the overlap years. Kid 2's school choice has the biggest impact:
| Scenario | Kid 2 Cost | 3-Year Overlap | Loans Needed |
|---|---|---|---|
| Out-of-state ($64,452) | $257,808 | $386,712 | ~$105,000 |
| In-state MO (Mizzou, etc.) | ~$28,000 | ~$240,000 | ~$0 |
| CU Boulder in-state (gap year) | ~$34,000 | ~$294,000 | ~$15,000 |
| Kid 1 only goes out-of-state | — | — | — |
If Kid 2 attends an in-state Missouri school, the loans disappear entirely. Worth having that conversation early — the difference is $105,000.
Actions
Now (March–July 2026)
- Shift both 529s to conservative/target-date allocations — Kid 1 is 18 months out
- Confirm SLUH billing: is $3,300/mo the combined rate for both boys?
- Start talking to Kid 2 about school preferences early — his choice has a $100K+ financial impact
August 2026
- Auto-transfer $1,500/mo → Kid 1 529
- Keep emergency fund ($1,500) and MOHELA ($1,500) auto-transfers
Fall 2026
- File FAFSA for Kid 1 (opens Oct 1, 2026 — for 2027–28 aid year)
- Apply for CU Boulder merit scholarships (Chancellor's Achievement: $8,000/yr OOS)
- Begin researching Kid 2 school options — in-state vs. out-of-state cost comparison
August 2027
- Pivot 529 contributions: $1,500/mo → Kid 2 529
- File FAFSA for Kid 2 (opens Oct 1, 2027)
Spring 2027
- When SLUH last payment clears (May 2027): redirect $1,650/mo to Kid 1 college cash account
Spring 2028
- When Kid 2's SLUH last payment clears (May 2028): redirect remaining $1,650/mo to college
Parent PLUS Loan Repayment
Total borrowed: ~$105,132 (2029–30 and 2030–31) Balance at repayment start: ~$115,000 (interest accrues while kids are in school at 8.05%) Repayment begins: ~November 2032 (6 months after Kid 2 graduates May 2032)
| Strategy | Monthly Payment | Paid Off | Total Interest |
|---|---|---|---|
| Standard 10-year | ~$1,400/mo | Nov 2042 | ~$53,000 |
| Aggressive | $3,000/mo | ~mid-2036 | ~$22,000 |
| Very aggressive | $4,000/mo | ~late 2035 | ~$17,000 |
Cash flow after both kids are done (June 2032+):
| Monthly | |
|---|---|
| Household income | $19,383 |
| All expenses (no college, no SLUH) | -$11,674 |
| Extra loan paydown (MOHELA/Nelnet) | -$1,500 |
| Available | $6,209/mo |
$6,209/mo is plenty to run $3,000–4,000/mo at the Parent PLUS balance while funding other goals. Aggressive payoff by 2035–2036 is realistic.
Note on rate: At 8.05%, paying these off aggressively is almost always better than investing the difference. The guaranteed 8% return from eliminating interest beats most conservative investment assumptions.
Bottom Line
The plan is fundable with ~$105K in Parent PLUS loans during the overlap years (2029–2031), repaid after 2031 when both kids are done.
Two ways to reduce or eliminate the loans:
- Kid 2 attends an in-state school — saves ~$105K
- Significant income growth between now and 2029 — every $1,500/mo of new income = ~$18K less borrowed
The 529s, SLUH redirect, and Phase 2 cash flow handle everything through 2028–29. Years 3 and 4 of the overlap are where loans become unavoidable at current income, unless Kid 2's school costs significantly less.