I know this is a good problem to have…but… we are in a situation that I never would have imagined 5 years ago when I was worried that we hadn’t saved enough for my 3 children. My oldest got a full ride scholarship…my middle dropped out after 3 semesters…and my youngest just got accepted into a program at one of her top choices that is giving her a stackable scholarship. According to their literature, program participants typically receive additional merit for a total of 1/2 to full tuition. Assuming she doesn’t even get 1/2 tuition total, we’re still overfunded.
Again, I know this is a good problem to have. I am just trying to figure out options and what the appropriate next steps will be. We already stopped automatic contributions after DS dropped out. I would appreciate feedback on options and other ideas:
- Withdraw an amount equal to DD’s scholarship for her last semester this year. (I know there’s a penalty.)
- Do nothing and say the money will be there if DS decides to go back to school or it goes for grandchildren that we won’t have any time soon (if ever).
- Can we gift it to another relative?
- Withdraw what ever is left over after DD is done and take the penalty.
Thoughts? Am I missing anything?