Sep 30, 2008 8:21 pm US/Eastern
What's Worrying You: 'College Tuition Drying Up'
CBS 2 HD Spoke To One Woman From Orange County Who Is Fearful All The Money She's Saved Won't Be Enough
NEW YORK (CBS) ―
For the past week, CBS 2 HD has been bringing you stories of people concerned about the economic crisis. We asked you to e-mail us what's worrying you, and hundreds of viewers wrote us.
Rosa-Maria Cappuccilli of New Windsor, in Orange County, wrote: "What worries me is that my husband's salary is not cutting it anymore. More of our income goes for bills due to high cost of fuel and food, and with our first daughter in college we are literally choking at times."
At the Cappuccilli home in New Windsor "frugality" is the family motto.
"Unless we have cash to pay it at the end of the month, I don't buy it," Cappuccilli said.
They have a small mortgage and virtually no credit card debt. They've taken one vacation in 10 years. Their used cars are paid for. They buy in bulk and clip coupons.
But still …
"I never thought that we would get to this position," Cappuccilli said.
The family saved $25,000 to send daughter Kristina to college. She chose Manhattanville -- at $44,000 a year.
Even with scholarships, grants and aid the Cappuccillis' college fund will be empty after Kristina's sophomore year.
Over the summer Kristina worked hard to land a $3,500 scholarship from her dad's union. But that led to a $1,000 reduction in her federal student aid.
The family has $75,000 left on its primary mortgage.
Financial planner Scott Kaplan consulted with Cappuccilli on Tuesday and immediately recommended she stop paying an extra $100 each month to reduce her mortgage principal.
"And accumulating that in a savings account to go ahead and start paying that towards college next year," said Kaplan, of Opus Advisory Group.
Kaplan wants the family to consider a manageable increase in their very low debt level by tapping their home equity.
"They should also consider deferring some retirement savings and putting the money towards college," Kaplan said. "And set realistic expectations when choosing college for their younger daughters."
A less expensive state school for 7-year-old Nicolette will mean less of a struggle for mom and dad.
Cappuccilli is also looking for a part-time job -- and once she gets one, she plans to bank every penny to help pay that college tuition.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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