dailyloe.com – A 75-year-old retired couple with $3.2 million faces pressure from their son to help pay for their granddaughter’s college education. The granddaughter chose a school costing $90,000 per year, and the son wants her to avoid student loans. The grandparents question the reasonableness of this request despite their substantial savings. This situation highlights a common family financial dilemma.
Obtaining a college degree is an expensive prospect today. The average annual cost per student is $38,270, according to the Education Data Initiative. This figure includes books, supplies, and daily living expenses. The average federal student loan borrower currently owes $39,547.
The full annual cost for a top school can shockingly exceed $90,000. It is understandable that a student would want to avoid graduating with burdensome debt. Well-off retirees are often asked to help cover education costs for grandchildren. However, a request tied to a $90,000-a-year school may not be reasonable, even with a $3.2 million nest egg.
This scenario requires careful handling to avoid hurting loved ones or risking one’s own retirement. As grandparents, the natural instinct is to want to help a grandchild. Yet, even with a generous nest egg, one may not feel ready to write large checks. Mike McCracken, president and founder of Wealth Guide Financial, provides insight into navigating such requests.[]
Source: Kiplinger
