Federal student loan payments resumed at the beginning of October, and many cash-strapped borrowers may be wondering how they’ll manage to pay their loan payments after a three-year hiatus.
“The children are still young and have time to create a better financial picture for themselves,” he adds. “Parents most likely don’t have this luxury.” “Parents can also use this as a chance to encourage them to work toward specific milestones they’d like to see the child accomplish,” Galiotto says. “For instance, if the child graduates with a high GPA, the parents will pay a higher percentage of the loans. Or, if they commit to saving a certain percentage of their income, the parents will pay more toward the loans. Parents can get very creative here.
“If you can’t afford to pay off a student loan it could be nice to have the student or graduate live at home for a few years. If cheap rent is close to $2,000 a month, a few years at home can do wonders,” says Marc Lescarret of Marc Alan Wealth Management in Rockaway, New Jersey.