Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
There best is when parents destroy their retirements sending kids to expensive schools …..
There are loads of ways kids can finance education …there is no loan for retirement the parents can get
Years ago in the USAA monthly newsletter l/magazine there was an article telling parents to stop paying for their kids college, taking out loans, draining retirement unless they sufficiently had the assets to not worry at all about retirement and the rest of their lives. It noted there are student loans but not retirement loans, let your kids get the loans and if you want to help, make some payments for them.
It’s amazing to me how much leeway/trust parents give a teenager for a 6 figure or multiple 6 figure decision that could have lifetime damaging impacts to all parties involved
Family member with a kazillion dollars in student loan debt. Keeps kicking the can down the road with each of these moratoriums.
He is pretty sure that they will ultimately wipe out his debt.
Pisses me off no end that i am paying for his, and others, lifestyle when in school and their refusing to pay the loans even though they have the ability.
What kind of a system thinks this is a good idea? Either financially, or just as importantly, morally. What does a borrower learn when they get yet another nefarious action with no consequences? We "owe" them this? Horsehockey !
Don't get me started.....
FWIW, there are two types of student loan forgiveness. There is the PSLF, where people had actually been paying for years and weren’t getting months credited due to administrative tricks played by the loan servicers. It’s only been in the last couple of months that people have actually started to get approved for forgiveness. I’ve seen a lot of people report that when all was said and done, they had months, if not years, of overpayments they got refunded. I really have no issue with people under this program not paying now as they agreed to join a program in exchange for 10 years working in public service.
Years ago in the USAA monthly newsletter l/magazine there was an article telling parents to stop paying for their kids college, taking out loans, draining retirement unless they sufficiently had the assets to not worry at all about retirement and the rest of their lives. It noted there are student loans but not retirement loans, let your kids get the loans and if you want to help, make some payments for them.
It’s amazing to me how much leeway/trust parents give a teenager for a 6 figure or multiple 6 figure decision that could have lifetime damaging impacts to all parties involved
I think it's acceptable for middle-class parents ($125-150k household income) to pay for their children's college education. But it should be factored into a budget. If parents are cashing out their retirements, it's as equally irresponsible as a student taking out $200k of student loan debt to get 6 years of college degree without having ever worked a day in their lives.
For most middle-class families, I recommend a 529 or a college pre-paid. Personally, I prefer the 529... but to each their own, not my hill to die on.
I began saving in a College Education 529 from the moment my daughter was born. When she turns 18, it'll be hers to use. I've made sure she understands the importance of getting a scholarship to help. Right now, I've saved enough that it would pay for 4 years at a decent state school. I gradually increased the amount that I'd deposit every month to account for pay increases. I still have 5 years left to save, so we'll see where that goes.
My retirement and savings are untouched because it's something I planned for.
Years ago in the USAA monthly newsletter l/magazine there was an article telling parents to stop paying for their kids college, taking out loans, draining retirement unless they sufficiently had the assets to not worry at all about retirement and the rest of their lives. It noted there are student loans but not retirement loans, let your kids get the loans and if you want to help, make some payments for them.
It’s amazing to me how much leeway/trust parents give a teenager for a 6 figure or multiple 6 figure decision that could have lifetime damaging impacts to all parties involved
I paid for my children to go to college, but the difference was we are talking somewhat reasonably priced state schools and not expensive private colleges.
I think it's acceptable for middle-class parents ($125-150k household income) to pay for their children's college education.
I don’t think it’s unacceptable it’s just often a bad financial decision and allowing and child to be the decision maker
Quote:
But it should be factored into a budget. If parents are cashing out their retirements, it's as equally irresponsible as a student taking out $200k of student loan debt to get 6 years of college degree without having ever worked a day in their lives.
I’m with you if it is budgeted and planned for and your retirement savings are well on track by all means, the issue is far too many parents aren’t checking those boxes
Quote:
For most middle-class families, I recommend a 529 or a college pre-paid. Personally, I prefer the 529... but to each their own, not my hill to die on.
Most middle class families aren’t budgeting, nor have a solid retirement plan in place. Most middle class families shouldn’t be compromising their retirement for college expenses but they are. For most Id recommend maxing their retirement savings first and then consider 529s
Quote:
I began saving in a College Education 529 from the moment my daughter was born. When she turns 18, it'll be hers to use. I've made sure she understands the importance of getting a scholarship to help. Right now, I've saved enough that it would pay for 4 years at a decent state school. I gradually increased the amount that I'd deposit every month to account for pay increases. I still have 5 years left to save, so we'll see where that goes.
My retirement and savings are untouched because it's something I planned for.
I think it's acceptable for middle-class parents ($125-150k household income) to pay for their children's college education. But it should be factored into a budget. If parents are cashing out their retirements, it's as equally irresponsible as a student taking out $200k of student loan debt to get 6 years of college degree without having ever worked a day in their lives.
For most middle-class families, I recommend a 529 or a college pre-paid. Personally, I prefer the 529... but to each their own, not my hill to die on.
I began saving in a College Education 529 from the moment my daughter was born. When she turns 18, it'll be hers to use. I've made sure she understands the importance of getting a scholarship to help. Right now, I've saved enough that it would pay for 4 years at a decent state school. I gradually increased the amount that I'd deposit every month to account for pay increases. I still have 5 years left to save, so we'll see where that goes.
My retirement and savings are untouched because it's something I planned for.
Good for her and you! You were and are in he financial situation to do so.
I think it's acceptable for middle-class parents ($125-150k household income) to pay for their children's college education. But it should be factored into a budget. If parents are cashing out their retirements, it's as equally irresponsible as a student taking out $200k of student loan debt to get 6 years of college degree without having ever worked a day in their lives.
For most middle-class families, I recommend a 529 or a college pre-paid. Personally, I prefer the 529... but to each their own, not my hill to die on.
I began saving in a College Education 529 from the moment my daughter was born. When she turns 18, it'll be hers to use. I've made sure she understands the importance of getting a scholarship to help. Right now, I've saved enough that it would pay for 4 years at a decent state school. I gradually increased the amount that I'd deposit every month to account for pay increases. I still have 5 years left to save, so we'll see where that goes.
My retirement and savings are untouched because it's something I planned for.
That makes no sense , 125k as a family income here in nyc is very different then 125k in cheapsville .
A family of 4 here qualifies for a nyc low income housing project at 90k
The age old demographic tendency. Young families go into debt, borrowing from the accumulated savings of retired people. As the societies of the advanced economies go grey, debt creation is decreasing while savings increase. This is why I believe that the current inflation is temporary due to dislocations. The structural tendency is deflation unless we have more young families.
She's not the kind of person we should be worried about.
The kind of person we should be worried about is someone who had to take out 80k of debt to go to a STATE college to get a job that pays 50k a year - for which that degree is a minimum qualification. That should not happen. Either take away the degree requirement from the job or fix the college costs. The state should not even have public universities if they cannot deliver the education affordably.
If it were me and I were in charge, I would literally close the doors of every single state college until they figured out how to deliver education at the G-7 average cost. In Canada the cost to a student is about 6500 CAD per year - about $5200 in U.S. dollars. In the U.S. that is about what community college costs. If they can do it we can do it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
