Anonymous
02/27/2024 23:34
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Home equity or HELOC credit union
Anonymous
02/27/2024 20:54
Subject: Re:Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Anonymous wrote:check college work study programs.
Uh, did you hold a college work study job? I did. It was helpful for me to have spending money - though very modest - as I did not receive any from my parents. But if I banked all my money from my work study hours, I would've still been 300 short of a grand at the end of the term for ten weeks of work.
Anonymous
02/27/2024 20:21
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Anonymous wrote:Anonymous wrote:Taking loans might be viable as a way of manipulating income for financial aid, as loans are not income. So, let’s say you’re on the border of great need-based grant money, but you’d have to match that with $15k of your own money. Let’s say you could get that money from your retirement funds, but the withdrawal would count as additional income. In that case, it might be worth it to take the loans for a few years, pay the school bills, and not trigger more income for next year’s financial aid calculation, and repay the loans after the last financial aid package with a retirement fund withdrawal.
Could also do this with a HELOC.
This is what we did.
Anonymous
02/27/2024 19:05
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Anonymous wrote:Taking loans might be viable as a way of manipulating income for financial aid, as loans are not income. So, let’s say you’re on the border of great need-based grant money, but you’d have to match that with $15k of your own money. Let’s say you could get that money from your retirement funds, but the withdrawal would count as additional income. In that case, it might be worth it to take the loans for a few years, pay the school bills, and not trigger more income for next year’s financial aid calculation, and repay the loans after the last financial aid package with a retirement fund withdrawal.
If this was the play, you could keep the payoff funds in your retirement in Treasuries (keep the money liquid and safe from market fluctuations) making 5%. Also, you might be able to get a college credit on your taxes. Whatever the case, if the loans allowed you to get grant money and the loan interest was minimal because of a short loan term and payoff funds are also safe and earning interest, loans may not be bad.
Anonymous
02/27/2024 18:58
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Anonymous wrote:Taking loans might be viable as a way of manipulating income for financial aid, as loans are not income. So, let’s say you’re on the border of great need-based grant money, but you’d have to match that with $15k of your own money. Let’s say you could get that money from your retirement funds, but the withdrawal would count as additional income. In that case, it might be worth it to take the loans for a few years, pay the school bills, and not trigger more income for next year’s financial aid calculation, and repay the loans after the last financial aid package with a retirement fund withdrawal.
Could also do this with a HELOC.
Anonymous
02/27/2024 18:03
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Anonymous wrote:Taking loans might be viable as a way of manipulating income for financial aid, as loans are not income. So, let’s say you’re on the border of great need-based grant money, but you’d have to match that with $15k of your own money. Let’s say you could get that money from your retirement funds, but the withdrawal would count as additional income. In that case, it might be worth it to take the loans for a few years, pay the school bills, and not trigger more income for next year’s financial aid calculation, and repay the loans after the last financial aid package with a retirement fund withdrawal.
Interesting. But income would have to be pretty low, no?
Assume you could do the same with low income even if expecting a large windfall/inheritance
Anonymous
02/27/2024 17:56
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
College is an investment. If a parent wants to take a loan out to support their kid AND it's not a Trump University, but a reputable college, go for it.
Anonymous
02/27/2024 17:55
Subject: Re:Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Anonymous wrote:You will not see anyone on here taking out such loans. Most kids doing so are first-gen and the parent or uncle has no idea what they’re really signing up for, older nontraditional students with no family support & has to leave their job to go to school or kids whose families are culturally opposed to college & kid finds somebody to co-sign their student loans because parents refuse to pay anything.
💯 this
Anonymous
02/27/2024 17:41
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
I would add. Never put them on forbearance. That will kill you
Anonymous
02/27/2024 17:16
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Anonymous wrote:Taking loans might be viable as a way of manipulating income for financial aid, as loans are not income. So, let’s say you’re on the border of great need-based grant money, but you’d have to match that with $15k of your own money. Let’s say you could get that money from your retirement funds, but the withdrawal would count as additional income. In that case, it might be worth it to take the loans for a few years, pay the school bills, and not trigger more income for next year’s financial aid calculation, and repay the loans after the last financial aid package with a retirement fund withdrawal.
+1
THIS!!
Anonymous
02/27/2024 17:09
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Taking loans might be viable as a way of manipulating income for financial aid, as loans are not income. So, let’s say you’re on the border of great need-based grant money, but you’d have to match that with $15k of your own money. Let’s say you could get that money from your retirement funds, but the withdrawal would count as additional income. In that case, it might be worth it to take the loans for a few years, pay the school bills, and not trigger more income for next year’s financial aid calculation, and repay the loans after the last financial aid package with a retirement fund withdrawal.
Anonymous
02/27/2024 17:02
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Anonymous wrote:People on here are jerks. Not you have gotten some leads on lower interest loans and advice about the advantages of Parent Plus vs. private loans. There are situations where borrowing by makes sense. Like if you will have access to funds in a few years to pay it off. But agree that you should proceed with caution. We may do something people will find even more upsetting—withdraw some funds for retirement. Folks on here will say NEVER DRAW FROM RETIREMENT. And that is generally true. But not all situations are the same. We are older and over saved for retirement instead of putting it in 529. Probably should have. But we will withdraw IF the school is deemed to be worth the money.
We just plan to jump off a bridge. Not interested in bed sores or dementia, sounds like a hassle.
Anonymous
02/27/2024 17:02
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
OP seems to think that other parents HAVE taken loans, and they want to know how much and how it turned out. OP, I know you don’t want to be critiqued, but the critiques are telling you something: overwhelmingly, parents don’t do this. Sounds like that answers your question, though you probably hoped for more positivity.
Maybe, OP has some tax or federal government forgiveness strategy that she thought someone might also mention.
Maybe, OP has some tax or federal government forgiveness strategy that she thought someone might also mention.
Anonymous
02/27/2024 16:59
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Hey OP, sorry you're receiving so much backlash. I'm assuming the "worth it" aspect is related to prestige or something noteworthy that the other options don't have.
Does your kid work hard? Are they the kind of person that is driven? Then yes, take them out.
Do you have a sliver of doubt that they will complete their degree or do what's necessary while there to take advantage of what you're after? Then no.
Parent Plus Loans are dangerous. Look at credit unions for educational loans before doing that.
My parents took one out for me and it was predatory, came due before I could even hang my cap and gown. Luckily I was able to pay it off for them.
Does your kid work hard? Are they the kind of person that is driven? Then yes, take them out.
Do you have a sliver of doubt that they will complete their degree or do what's necessary while there to take advantage of what you're after? Then no.
Parent Plus Loans are dangerous. Look at credit unions for educational loans before doing that.
My parents took one out for me and it was predatory, came due before I could even hang my cap and gown. Luckily I was able to pay it off for them.
Anonymous
02/27/2024 16:57
Subject: Anyone else preparing to take our parent loans for 2023-2024? If so, how much
Hypothetically, if one retired to Europe... What would be on the hook? Social security?