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This image: James and his wife, Noula, both 62 years old, have achieved good life, and he got a joint income that gives them a lifestyle of the upper layer. But when their daughter Tia went to the college, they told her that they could not bear her way.
Most of their money is linked to investments and pension plans sponsored by the employer, as well as real estate. Regardless of the lack of very liquid assets, they also felt that it is important that TIA recognize financial responsibility.
But they left the door open to resentment. Now that TIA graduated, you condemn 90,000 dollars of students’ debts – and she is not happy with that.
James and Noula are now wondering if anything they must do to help their daughter without endangering their pension savings.
This is a complex problem, and there is no “correct” answer. For some families, they can put them in paying the price of education of their university children in debt, and may endanger their retirement or other financial goals.
While the college loans are present, “there is nothing like a pension loan,” said Christian Mitchell, the chief customer employee in the northwest of Mutual, said in the study and progress of the year 2024.
“If parents cannot bear the costs of life in retirement, this unexpected financial burden may occur on the shoulders of their children. That is why it is extremely important to think about moving every money as part of a greater financial plan.”
Most of the consultants do not recommend indulging in your retirement savings, withdrawing from 401 K (K) or using home stocks to help your child avoid kidney debt.
Among the American and retired workers, saving both the expenses of the future and retirement, 58 % said they are late to retire to reach both goals, according to a survey conducted by the Association of Aktarians. 41 % said they withdrew the money from their pension funds to pay the tuition fees for family members.
“The average credit of federal students’ loan debt is $ 38,375, while the average average balance (including private loan debts) may reach $ 41,618, “according to the Education Data Initiative. Moreover, data also indicates that 4.86 % of federal students ’loans were in a default state as of Q4 2024.
In total, Americans condemn approximately $ 1.8 trillion of student loan debts, according to Federal Reserve 2025.
If they were able to return in time, James and Nula could discuss the situation with Tia and explain why they were unable to pay all the costs of her university expenditures – and may have worked with her to reach some options.
For example, they could pay a percentage of its costs if TIA paid the rest. They could match her savings from a summer job, or they could help in research alternatives such as scholarships and grants based on merit.
Students will not qualify from families who earn a specific income threshold for federal assistance, but they may still want to submit a free request for federal students’ assistance (FAFSA).
Many colleges require students to provide FAFSA to be qualified to obtain scholarships, scholarships, and support funds and federal loans supported and unnecessary, which could have been provided to TIA. The presence of the FAFSA application in the file can facilitate the follow -up of these opportunities during its testimony. Better, her parents could start early by developing a 529 plan while she was still young.
Federal students’ loans also do not cover the cost of the entire college – including housing, food, facilities and other costs. However, students loan can bridge the gap between federal students ’loans, scholarships and any scholarships your child may receive. Avi College It can help you secure a student loan for the lowest available rate.
It is easy to apply, and parents can also log in as a guarantor of their children’s loan. It could be Approved by immediate credit decisionAnd the entire process can be completed in less than three minutes.
From the start, you should be clear from what you want to contribute and what you expect your child to contribute. This is the case even if you are planning to pay your child’s entire fees. Although James and Noula cannot return in time, they can make open and honest conversations with Tia about her debts and how they can be able to help, including offering her money or providing a loan.
A plan can help relieve stress and start TIA on the right foot when you start a new chapter in life.
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This article only provides information and should not be explained as advice. It is provided without guarantee of any kind.
