Is it better for parents or students to take out college loans?
Question:
Answer:
The student should take out the long, so they understand the responsibility of repaying the loan.
my mom took out the loan for my sister. its good in that when she dies, the debt goes away since she doesnt have enough assets to pay for it. on the other hand, my sister decided she doesnt have to make the payments, and went ahead and makes my mom make the payments on her loans, because she is angry at her about something. ild say, if you didnt want to pay for your kids college, you shouldnt have had kids, but on the other hand, if the little tirds didnt want to pay off their loans, they shouldnt go to college.
Don't worry! I am a college student and all my loans are in my name. I am leaving school with debt, but I have gotten some great scholarships (make sure to try to apply to as many as possible, even if there are essays involved!). As for who's name the loans should be in THE STUDENT's, if it is in your name, you pay it back while they are in school and with 3 kids that's gonna be A LOT. But if the loans are in your kid's names, they don't have to pay them back until 6 mo's after graduation (if they are through the gov't). To get loans through the gov't check out the FAFSA website and the earlier you get started on it, the less stressful it will be, trust me!
Since tax laws are complicated I would definately recommend talking to your bank's financial advisor. (I believe putting it under the students name is cheaper however you would probably have to be cosigners) Also be sure to file for FAFSA since you are sending 3 sons at once to college you may get some federal aid. Also if your sons are interested in going the same school they may offer tuition discounts. For example if 2 siblings are going to the same school at Seton Hall University the 2nd sibling will get tuition @ 50%. I don't know about additional siblings but probably under similar rules. I hope this helps.
It is best if NO ONE takes out loans.
(1) You do not need to be going into debt for something for which you should've saved.
(2) Your kids (given that their parents are unprepared) need to get jobs & work their way through school if they really want to go that badly.
(3) Student loans suck! I & DH were FOOLISH & our parents were also UNPREPARED, so we borrowed our way through 2 degrees apiece. We are still paying on the last of our student loans. I wouldn't trade my degrees, but I would do it differently if I had it to do over. In fact, we ended up paying cash for my last year since he was working & the debt was already tremendous. I strongly advise AGAINST student loans. The "tax benefits" do not even come close to covering the interest & the stress! We haven't borrowed for ANYTHING since 2002 & we never will again! A hard lesson well-learned.
If the parent can make the loan, then that is what I would recomment. It is so hard for our young graduating from college to start life owing so much money. I would not even allow mine to get a credit card until the last year of college.
It depends on your financial situation. The first step you need to do is fill out FAFSA forms. This will determine if the boys are eligible for grants instead of taking out loans. You might have to do both--student and parent loans to cover all the costs.
Please contact a financial counselor at the school or schools and also your bank or credit union. Since your situation is unique, you may be pleasantly surprised--be sure to have them apply for scholarships.
There are good debts and bad debts. Education is a good debt. The interest rate is lower and if you run into a financial bind, you can ask for a deferment.
Note to Yvette: Wow! I am impressed. Thanks for all the links.
Have the kids go to www.fafsa.ed.gov and fill out the application for the free federal aid and they wont have to pay it back until 6 months after they graduate
More Questions & Answers...