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What about a Home Equity Loan or Line of Credit? Our CU is currently offering 6% loans, and 3.25% LOC (variable).
Our son is going to grad school (and getting married in a few months - his WTB is in health-care, should be making good $), these rates look better than what he can get beyond the limited ($8,500) Fed subsidized loan (no interest accumulates until after graduation). So I might take out one of these home loans/LOC and he can owe me. The 6% isn't too attractive to me, I might prefer to just dip into savings and loan to him direct. And the 3.25% is variable, so some risk of rising rates there (but I could just pay up and dip into savings if that happens).
Of course one side of me wants to just stay out of it, and let him be fully independent in this matter. Another side says just keep it simple and make him an interest-free loan, the interest being a gift.
-ERD50
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