Keeping College Costs In Check

Geoff has three children almost ready for college. Should he use his pension or let them take out student loans to pay for it? Dave rephrases the question to help Geoff see the scenario clearly.

QUESTION: Geoff in Boston has three children almost ready for college. He’s drawing a pension but does have another job to pay for their college tuition. Should he use the pension or let them take out student loans to pay for it? Dave rephrases the question to help Geoff see the scenario clearly.

ANSWER: With the pension and your new job, along with your wife’s job, you make $114,000 a year. If part of that money wasn’t pension, then the question becomes if you should cash flow college out of your $114,000 income or go in debt instead. The answer is to pay cash. I’m not sending you into debt, especially with your income, since you can pay for college.

Also, you only need to pay for them going to a college that doesn’t put you or them into debt. You don’t have the money for them to go to a $30,000-a-year college.

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