Do we owe our teens a "fun summer"?

farm

Fri, Jun 29 2018, 2:29 pm

Some thoughts:
-if sleepover camp is not a financial possibility and DD cannot accept that, how in the world are you planning on handling seminary pressure?
*tangent* -what's with the scrimping to pay for college? Let the kids have loans. They come with tax benefits, lower interest rates than any other loan, and are just part of that person's monthly expenses once they enter the workplace for the next 20-30 years (rent or mortgage, health insurance, gas, electric, phone, student loans...). It seems super silly for parents who are tight to prioritize saving for college versus other things where low interest tax beneficial options are available. Just make sure the person taking out the loan has a reasonable major (ex accounting/OT/lawyer and not underwater basket weaving)
-it's always helpful to empathetic-ly ask the sullen person for ideas on improving the situation and what role you can possibly play to help them

amother

Olive

Sat, Jun 30 2018, 10:59 pm

farm wrote:

what if your dd/ ds does not find a job right away. Or they need to start by interning? or begin with a low wage entry position? Also, who co-signs the loan?

why is it beneficial to start your grown childs life with debt?

especially if they go into fields that don't pay well. ( it could happen)

amother

Sienna

Sun, Jul 01 2018, 1:50 am

Some info about student loans:

They have crazy high interest rates

They do not carry on if you die

They can be payed back as slow as can be

There is loan forgiveness

They cannot seize assets if you don't pay

People who have to pay for their own degree are more serious about finishing it and choosing a field that will cover it's costs. I am all for children paying there way through college. I did it and I'm glad my parents didn't scrimp any more than they did to try and pay for me. Also in the yeshivish world I come from most of my class are not professionals who went to college. It is definitely not a given that that is the way you need to make a parnassah.

amother

Orchid

Sun, Jul 01 2018, 8:26 am

amother wrote:

Co-signers are forced to pay if the principal dies.

Assets can be seized from the estate.

They can be paid back under qualified repayment plans - not as slow as can be.

There is loan forgiveness under limited circumstances for limited amounts.

Unless you know for sure your children can make it without schooling, it is smarter to be financially prepared for them to attend college.

Those that have the money to go to school have an easier time and less stress making it more likely they will finish not the other way around.

anon for this

Sun, Jul 01 2018, 9:16 am

amother wrote:

Co-signers are forced to pay if the principal dies.

Assets can be seized from the estate.

This is only true for student loans from private lenders. Federal student loans are discharged (no longer need to be paid) when the borrower dies. In the case of a federal Parent PLUS loan, the parent is actually the borrower, but the loan is discharged if either the parent or the student die. If the student dies, the loan forgiveness may be considered taxable income for the parents. In any case, estates cannot be seized.

In the case of private student loans, some lenders offer a death discharge, but not all do. Any co-signers are generally obligated to pay.