Hermit
Thinks s/he gets paid by the post
DS is in his 6th year of college. About time for him to take over his college costs. We applied for a Sallie Mae loan. About 12% for a nine year loan. I just can't do that. He would pay almost $30,000 on a $15,000 loan. That is just for the first semester with at least two more to go.
He has called some banks and it didn't look much better.
I called PenFed and can set up a secured loan against a savings account that I fund. He would need to be a joint owner on that account to be able to get his own loan. The loan cost is 2% over a savings account interest rate or currently 2.5%.
I have an appointment with my accountant to make sure I don't have an issue with gift taxes, but his thoughts over the phone was there would be no problem.
Has anyone had experience with setting up such a loan and using it for education?
He has called some banks and it didn't look much better.
I called PenFed and can set up a secured loan against a savings account that I fund. He would need to be a joint owner on that account to be able to get his own loan. The loan cost is 2% over a savings account interest rate or currently 2.5%.
I have an appointment with my accountant to make sure I don't have an issue with gift taxes, but his thoughts over the phone was there would be no problem.
Has anyone had experience with setting up such a loan and using it for education?