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Financial Planning / Paying For College
|Subject: mortgage/college||Date: 4/12/2012 1:06 PM|
|Author: KKKF1||Number: 7958 of 8209|
I have a question for paying for college:
My stock/mutual fund/cash balance is ~300k (not including retirement account).
Mortgage balance: ~250k. (3.75% 10yr fixed, 9 more yrs left).
Family annual income: ~$180k
Child will be in college in 2014.
Option 1: pay off my mortgage to lower my EFC. Apply for loans later (subsidized, non-subsidized, equity loan, etc.)
Option 2: do nothing.
For option 1, I need to sell my stocks, which will force me to pay more tax for tax year 2012. Does it increase my gross income so that actually increase my EFC since in late 2013 or Jan 2014 it is the 2012's tax return will be used, not 2012. Compared to the new loan I would have, is the current 10yr fix loan offering me more savings regards to interest paid, tax benefit etc.?
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