How do you feel about making your kid get student loans?

[Anonymous]

I showed my kids how taking out the subsidized loans helped their credit. They did so. I'll pay them off three months after graduation. When they'll have credit at 720plus.

They've also had Roths since they were babysitting at 13/14 years old.

I'm big about financial literacy

[Anonymous]

Anonymous wrote:I showed my kids how taking out the subsidized loans helped their credit. They did so. I'll pay them off three months after graduation. When they'll have credit at 720plus.

They've also had Roths since they were babysitting at 13/14 years old.

I'm big about financial literacy

That's a lot to pay for credit. I'd rather my kids just build their own with responsible use of credit cards - free way to build credit.

[Anonymous]

If the school they got in to and wanted to go to was demonstrably significantly better than a cheaper alternative, either in terms of general rankings, for their program of study, or their specific personality/needs then if necessary I would most likely find a way to fund it even if it meant I had to postpone my retirement, make other cutbacks and/or assume some debt myself.

If I didn’t feel their preferred school truly had legitimate advantages for any of the above reasons then I would strongly encourage them to choose the cheaper alternative or require they take out loans to cover the difference.

[Anonymous]

I think kids should avoid them- picks less expensive school, maybe a few years at a community college before transferring to save money, but I am also not against them. Not all families can afford to pay for all of college. I had student loans and could not have attended college otherwise.

Looking back I wish I had picked a less expensive school to minimize my loans, but at 18 I really had no clue; saw loans as no big deal and had no concept of how long they would take to a pay off. i didn't see having loans as having "skin in the game" as the loans never felt concrete to me until many year later.

[Anonymous]

Anonymous wrote:I think kids should avoid them- picks less expensive school, maybe a few years at a community college before transferring to save money, but I am also not against them. Not all families can afford to pay for all of college. I had student loans and could not have attended college otherwise.

Looking back I wish I had picked a less expensive school to minimize my loans, but at 18 I really had no clue; saw loans as no big deal and had no concept of how long they would take to a pay off. i didn't see having loans as having "skin in the game" as the loans never felt concrete to me until many year later.

So true about the loans not feeling real until they’re due. Similar experience.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I showed my kids how taking out the subsidized loans helped their credit. They did so. I'll pay them off three months after graduation. When they'll have credit at 720plus.

They've also had Roths since they were babysitting at 13/14 years old.

I'm big about financial literacy

That's a lot to pay for credit. I'd rather my kids just build their own with responsible use of credit cards - free way to build credit.

It’s an interest-free loan. It costs nothing. In fact I get to invest that cash instead of spending. Clock doesn’t start on govt loans til graduation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I showed my kids how taking out the subsidized loans helped their credit. They did so. I'll pay them off three months after graduation. When they'll have credit at 720plus.

They've also had Roths since they were babysitting at 13/14 years old.

I'm big about financial literacy

That's a lot to pay for credit. I'd rather my kids just build their own with responsible use of credit cards - free way to build credit.

It’s an interest-free loan. It costs nothing. In fact I get to invest that cash instead of spending. Clock doesn’t start on govt loans til graduation.

Most students don't qualify for subsidized loans and interest start accruing immediately.

[Anonymous]

Anonymous wrote:Completely against it. DH was from a MC but broke family and they told him to go to THE best school. He ended up with so much debt, which meant he didn't follow the career path he wanted. Not going to do this to our kids.

Are you me?! Don’t do this!!

[Anonymous]

Anonymous wrote:We can pay about 30k/year per kid...so basically instate. Kid got into a dream school with no merit (60k/year) we refused to take out loans and didn't want him to either.

I figure he will need to take out loans for grad school.

+1

[Anonymous]

This is a 5%-er or maybe 3%-er topic.
So much of the rest of us don't have the capability to full pay.
Those kids are glad to go to college and taking out loans is part of that for them. Beats working 40 hours a week and carrying a full load or taking extra years to finish. They also know that parents need to save for their retirement so as not to be a burden later and to preserve the nest egg by NOT co-signing.
Lucky those for whom this is a question.

[Anonymous]

I'm full pay. My parents paid for my college education, so I'm doing the same for my kids. I've always contributed up to the gift tax exclusion annually per kid into their 529 plans. DH paid his way through college and grad school, so getting him on board with early and aggressive 529 savings took some debating.

[Anonymous]

I was happy we could avoid it (but it was close).

It helped that she won several new scholarships in her junior year of college, I continued to contribute to her 529when she was in college, and she contributed part of her summer earnings to her school costs.

It is hard enough to launch in your early twenties. I am happy that I could save her the added stress of starting out with debt.

[Anonymous]

How much and at what interest rate?
I'm not against low interest loan at all. I do have max for college I'm willing to pay, but it depends on school, degree, my kid's grades, return on my investment, and who know what else.
If this question implies that my kid will be saddled with student loans for a long time, then I doubt it. They have investment account and I have one.
I borrow money to make money. Not scared of loans at all.

[Anonymous]

Anonymous wrote:This is a 5%-er or maybe 3%-er topic.
So much of the rest of us don't have the capability to full pay.
Those kids are glad to go to college and taking out loans is part of that for them. Beats working 40 hours a week and carrying a full load or taking extra years to finish. They also know that parents need to save for their retirement so as not to be a burden later and to preserve the nest egg by NOT co-signing.
Lucky those for whom this is a question.

+ 1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I showed my kids how taking out the subsidized loans helped their credit. They did so. I'll pay them off three months after graduation. When they'll have credit at 720plus.

They've also had Roths since they were babysitting at 13/14 years old.

I'm big about financial literacy

That's a lot to pay for credit. I'd rather my kids just build their own with responsible use of credit cards - free way to build credit.

It’s an interest-free loan. It costs nothing. In fact I get to invest that cash instead of spending. Clock doesn’t start on govt loans til graduation.

We are doing this also.