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 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 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 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 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 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.

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.

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 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.

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 wrote:Be aware that all schools do not offer RA’s full coverage of room and board. My DS was at a SLAC and received a discount on room only.

Anything helps

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.

Yes, that is too much in loans.

We had to weigh our child’s needs and the resources of the schools, opportunities available and the areas they were in.

The price difference was about $15k/year after a talent scholarship helped bring cost down a bit. My parents offered a little help (part of our college fund is from my grandpa when he passed) and the kid can do the loans +figure out extra scholarship money+a job that could help.

To be honest, our child likely needs to have some skin in the game anyway. We’ll try to make it less painful and we will help to figure out refinancing if it makes sense after graduation. But we also have a child that isn’t the best student and needs to understand this is an investment in herself.

My kids won't, but everyone I know had loans. You do what you need to do.

Anonymous wrote:Yes, they took loans and they don't know this but when they pay them-they will pay us, we will pay the loan, we will put their money away and when they want to buy a house they will have that money.

This is nice. If my child has to take a few of the federal student loans , I plan on contributing/paying the monthly payments.

Anonymous wrote:I don't understand how a parent can "make" their child take out loans...?

They refuse to pay, like my parents. Not only did they refuse to pay; they refused to fill out the FAFSA for me.