Taking Out Parent Plus Loans
Helping your child through college is a no-brainer for most parents, even though some people simply don’t have the means to help.
That’s why they take out Parent Plus loans. They sound like a great investment, right? After all, your child can focus on their education! But what a lot of people don’t realize is that they’ll be responsible to pay them back, not the kids!
If you’re in your 50s or 60s, think about what such a huge financial burden would do to your finances- your daily expenses and your savings.
Helping your kid out is a noble gesture, but look for other avenues first and don’t put your retirement in jeopardy. Otherwise, while your aim might be to help your child succeed in life now, you might financially cripple them in the future if they have to spend a significant portion of their earnings to care for you during retirement.
See? A double edged sword!
