My mom wants to help my son with college. She was initially saying she wanted him to borrow the max fed loans and then the rest in alt loans and then she would help him repay after college. I had tried to explain the negatives of alt loans and she wouldn't hear it. She has done some of her own reading though and now has been considering the possibility of giving him $14k/yr instead for school (max gift without gift tax).
She wants to give the money directly to him and then have him pay the school. We would time it after the FAFSA has been submitted so it wouldn't be an asset. Is there anything wrong with this plan? I thought I had read something about how it's better to give the money to the parents and have them pay the school, but I really can't think of a reason why that would be the case.
Thanks for your help!