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Financial Planning / Paying For College


Subject:  Re: funding grandchild's college Date:  9/5/2013  3:07 PM
Author:  1poorguy Number:  8081 of 8480

In reading the discussion, though, I am left wondering if people are thinking that the financial aid received will be grants when in reality, the vast majority of financial aid is loans. And a good portion of those loans are not subsidized, so interest accrues from Day 1.

I had assumed folks were talking about getting grants and such. Under those circumstances you would want the student to be as impoverished as possible (to get the most grant money). However, you do make an excellent point that if people are talking about loans then one must factor in the interest of those loans and the fact that all that money has to be repaid. In that case I would prefer to tap our home equity credit line and pay for college from that. It's still a loan, and the interest is tax-deductible (unlike most loans).
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