Showing posts with label student loans. Show all posts
Showing posts with label student loans. Show all posts

Sunday, September 9, 2012

Mommy Money: Should Kids or Parents Pay for College?

Check out all of the posts in the Mommy Money series.

By Maddie

The cost of college has been all over the news lately. Perhaps it has to do with it being election season…but maybe not. I really don’t think anyone can deny the skyrocketing costs of higher education.
He's only four -- but saving for college is on my mind

My husband and I both have bachelor’s degrees. I went to a community college, spent one year at a private college, and then finished up at a state university -- all over the course of about five and a half years.

My husband attended a private college for the entire six and a half years it took him to get his undergrad degree. My parents had a 529 plan for me that they paid for starting when I was just a baby. They paid cash out of pocket to cover what the plan would not for my year at the private school.

My last semester of state school was no longer covered by the 529, so they generously paid cash for that as well. I graduated from college with 0 student loan debt.

My husband’s parents did not have college savings for him.They chose to let him finance his education through scholarships, grants, and loans. He escaped the first few years of school with very minimal loan debt,using mostly grant and scholarship money. But when he changed his degree several times and suffered the loss of his dad, his momentum slowed and his grades dropped. This caused him to lose scholarship money and have to take on more student loans.

He graduated with about $70,000 in student loan debt. About 1/3 is in subsidized Stafford loans. The rest is in unsubsidized Staffords and private loans. We pay about $450 per month in loan payments.

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