re: Student Loans

So it sounds like what you have is a PLUS loan, it's one of the shadiest financial products on the market.

Colleges push these on unsuspecting parents who make too much to qualify for grants or traditional student loans. "It's just another type of student loan."

That's fine but if this is the case, understand the following are true statements :

1. Your daughter is debt free. She has $0 student loan debt.
2. You took out $50k in your name to pay for her college. It is your responsibility to pay the debt. She has no legal responsibility.

quote:

---

The loans are in my name and are Federal loans (NELNET). My 401k is well funded. I’m just trying to be a good parent and pay off her student loan. She is graduating with a 4.0 for all four years of school. I’m 56 years old about to be 57 so I’m trying to reduce my debt so I can retire and me and my wife can enjoy life. If that’s being a bad parent then I don’t need your silly arse comments.

---

OK this clears up a lot.

These are your loans, not your daugher's loans. You are on the hook for them. Not her. They are your debt, not hers.

Having said that... now we need to figure out the best way to service the debt.

What is the current interest rate on these? I believe (anc, step in here, please) these loans are at a variable rate?

At that point, it becomes a somewhat "simple" question.

How much money do you have, each month, to service the debt, once she graduates, without having to take any money out of a retirement account?

I would try to aggressively pay down the loan, but not take money out of retirement accounts (and pay tax and 10% penalty) to do so.

By the way, you being the "good parent" was taking out the loans. Now that's over, and the only thing that matters is how you will pay them off.

quote:

---

The loans are in my name and are Federal loans (NELNET). My 401k is well funded. I’m just trying to be a good parent and pay off her student loan. She is graduating with a 4.0 for all four years of school. I’m 56 years old about to be 57 so I’m trying to reduce my debt so I can retire and me and my wife can enjoy life. If that’s being a bad parent then I don’t need your silly arse comments.

---

Generally speaking, people only move into PLUS loans once they've exhausted eligibility for the objectively better direct student loans. Does she also have separate loans on top of this, or did you guys take out PLUS loans as a loan of first resort and this is all there is?