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Ask Dave

Daughter Pay for College?

Joe's borrowed a lot of money for his daughter's college education, but Dave says he should be planning ahead, not taking out loans.

QUESTION: Joe was completely debt free but has borrowed for his daughter’s education with loans.  By the time she’s done, he will have borrowed about $60,000.  He makes $100,000 a year.  Is it reasonable to have her pay him back?  How much should she pay him back? 

This is a family-to-family decision based on what she makes at her first job out of college. 

You should be budgeting money for college out of your income and paying cash for your children’s education – not taking out loans and having your daughter pay you back if she makes enough money.

Don’t go into any more debt to pay for education.  Budget some money out of your income, make the other children get part-time jobs and pay cash for college as they go.