Kids live at home while paying loans?

[Anonymous]

I have heard that this is a new trend. We are several years out, but I can see this working for my family. Apparently, kids are moving back home for a year after college while working, and using their entire income to pay off student loans.

We are trying to save for college, but we aren't getting very far. This seems to be a smart option. I realize there are a lot of variables - does the kid want to move back home, can the kid find a job near home, etc. I like the thought of at least offering this to my kids. I would not mind supporting them for one more year if it meant they could start their adult lives debt-free. I actually have a friend who did this. He didn't have student loans to pay off, but he put his first year's salary in savings. Over 20 years later, he and his family still benefit from that savings.

[Anonymous]

I think it is a great idea, but for free room and board I would want the check deposited into my checking account with a small stipend to DC. I would want to make sure the funds were going where they were intended to go, be it loans or savings. No post-graduate free ride here.

Course my DD is 2 and maybe she will grow up to be more financially responsible than I was at 22 and wouldn't need this level of micromanagement.

[Anonymous]

Anonymous wrote:I have heard that this is a new trend. We are several years out, but I can see this working for my family. Apparently, kids are moving back home for a year after college while working, and using their entire income to pay off student loans.

We are trying to save for college, but we aren't getting very far. This seems to be a smart option. I realize there are a lot of variables - does the kid want to move back home, can the kid find a job near home, etc. I like the thought of at least offering this to my kids. I would not mind supporting them for one more year if it meant they could start their adult lives debt-free. I actually have a friend who did this. He didn't have student loans to pay off, but he put his first year's salary in savings. Over 20 years later, he and his family still benefit from that savings.

Do your best to help them but don't go crazy. I think offering a free place to live so they can pay off loans is great but they may choose to do otherwise. Put it on the table and let them weigh the options.

[Anonymous]

Not quite the same, but I lived at home when I worked full-time and paid my way through night law school. It was a big help. I bought my first condo the same week I learned I passed the bar.

[Anonymous]

I would love it if my sons came home after college. My oldest is only 5 and starting kindergarten this year. I already feel sad at the thought of him going away to college.

[Anonymous]

New? I think this has been around as long as student loans has been around.

I moved home, paid some rent $200, 20 years ago and paid off the bulk of my student loans. It was limiting because I had to find a job near my parents house (though that was DC so not that limiting) but no unpaid internships, etc.

I also had a group of friends that moved home to save for a down payment on a house.

[Anonymous]

I'd definitely be on board with my kids doing that. I lived at home for about a year after college to save money to replace my car.

[Anonymous]

Anonymous wrote:I would love it if my sons came home after college. My oldest is only 5 and starting kindergarten this year. I already feel sad at the thought of him going away to college.

That's why they turn into teenagers…so you will actually be happy to see them go

[Anonymous]

Anonymous wrote:New? I think this has been around as long as student loans has been around.

I moved home, paid some rent $200, 20 years ago and paid off the bulk of my student loans. It was limiting because I had to find a job near my parents house (though that was DC so not that limiting) but no unpaid internships, etc.

I also had a group of friends that moved home to save for a down payment on a house.

OP here. I grew up in a small town, so I guess that's why I've never heard of the concept. Not a lot of post-college jobs available.

I am glad to see that others think this is a good idea. just the thought of giving them this option eases my guilt a bit.

[Anonymous]

I see the good points.

I also see young adult getting too comfortable w/the cushy suburban life - a life they have not yet earned: the neighborhood pool membership, mom and dad there to help in a pinch. Less fire in the belly. At this age you want them to want. Motivation to seek the good life (which is usually some variation of their childhood environment if it was happy) does a lot to carry them through the hard, formative times.

Either way. Good points for both approaches. I could certainly imagine mine coming home too.

[Anonymous]

When the stars align re job prospects, career interests, location, and the adult child-parent relationship, it's a great option. I lived at home with my parents while working 60-80 hrs/wk through different temp shifts over a couple of summers. The savings gave me a lot of opportunities I otherwise wouldn't have had. If I had done it for a full year, rather than just summers, I would have started my adult life with tens of thousands in savings.

I don't know if it's realistic to expect that the child will save their entire salary though. Sure, they save on rent, but they should still cover their own food, socialization, car insurance, phone expenses & such. And they should be an adult at home - do their own laundry & dishes, clean up after themselves, etc.

[Anonymous]

If I were to do this with my kids, I would set it up so that they are required to put what they would be paying in rent and food directly to loans. And I would check and make sure that was happening.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would love it if my sons came home after college. My oldest is only 5 and starting kindergarten this year. I already feel sad at the thought of him going away to college.

That's why they turn into teenagers…so you will actually be happy to see them go

Exactly. It is kind of like the end of pregnancy. Get this kid OUT already.

[Anonymous]

Anonymous wrote:When the stars align re job prospects, career interests, location, and the adult child-parent relationship, it's a great option. I lived at home with my parents while working 60-80 hrs/wk through different temp shifts over a couple of summers. The savings gave me a lot of opportunities I otherwise wouldn't have had. If I had done it for a full year, rather than just summers, I would have started my adult life with tens of thousands in savings.

I don't know if it's realistic to expect that the child will save their entire salary though. Sure, they save on rent, but they should still cover their own food, socialization, car insurance, phone expenses & such. And they should be an adult at home - do their own laundry & dishes, clean up after themselves, etc.

OP here. This is how DH feels as well. I would be up for paying everything we could afford at that time, except socialization. I always had the intention of paying all of their college and it does not look like I will be able to do that, so this would give me another shot at it. Even if it meant paying their phone and car ins.

I guess you'd have to consider your kid's personality. If I felt that it would be hard to get them to leave after the year, I might not even offer it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:When the stars align re job prospects, career interests, location, and the adult child-parent relationship, it's a great option. I lived at home with my parents while working 60-80 hrs/wk through different temp shifts over a couple of summers. The savings gave me a lot of opportunities I otherwise wouldn't have had. If I had done it for a full year, rather than just summers, I would have started my adult life with tens of thousands in savings.

I don't know if it's realistic to expect that the child will save their entire salary though. Sure, they save on rent, but they should still cover their own food, socialization, car insurance, phone expenses & such. And they should be an adult at home - do their own laundry & dishes, clean up after themselves, etc.

OP here. This is how DH feels as well. I would be up for paying everything we could afford at that time, except socialization. I always had the intention of paying all of their college and it does not look like I will be able to do that, so this would give me another shot at it. Even if it meant paying their phone and car ins.

I guess you'd have to consider your kid's personality. If I felt that it would be hard to get them to leave after the year, I might not even offer it.

Fair enough. If you've got a group family plan for car insurance and phones and it's not a burden for you to keep the kid on, why not? But just be clear about when you expect the kid to get his or her own plan. I plan to keep my kid on my health insurance as along as possible because I have a plan that doesn't cost more per person - once I've opted into the "family" option, it covers the entire family, whether we've got 1 kid or 5.