More recent graduates are in an entirely different situation, and even bankruptcy promises no relief. Some consider the IBR program, but for most people, IBR payments are less than the interest, and thus it can be a very risky long-term solution.
I don’t want my children to be saddled with student loans into their 30s, 40s, and even 50s that will prevent their financial success. But I also don’t want them to think I’m Daddy Warbucks and never really learn to work and be self-reliant.
I’m certainly willing to use my assets and income to help launch them into life on a path of personal, financial, and professional success. There is little that is more important to me than that. As Warren Buffett famously remarked, “I want them to get enough that they feel they can do anything.
I hope to teach my children that they should be even more frugal when spending someone else’s money than they are spending their own. The most important step one can take to “pay for” college is to choose an inexpensive college.
Notice how I didn’t title this post “How I Will Pay….” I want my children to take ownership of their own education and the cost of that education. There will be assistance from me, no doubt, but there won’t be any blank checks.