I agree this thread is confusing. It seems the cows have left the barn and you’re hoping they’ll find their way back.
You asked how to show him the implications. Thats not about maxing your own loans. Maybe I’m wrong, but that sends the message big loan debt is ok, a reality (after all, your parents paid for your educations.)
We told our kids college costs were like buying a new Mercedes every year. They understood we were not in that market, were driving old cars, balancing other family priorities.
You asked how it works. After the PP loan amount is disbursed, the billing starts a few months later. After that, it’s on a similar cycle: more money is released, your payment increases.
We opted to start paying, not delay. First payments are easy and the ten year clock starts on that part of the overall loan. Problem is, with each new disbursement, the monthly payment goes up. By the end of senior year, you could be in one heck of a crunch. So by then, it’s, eg, $468 (10k loan/year) on the first kid’s four years, but now you’ve got a second kid in the cycle, his PP loan costs.
Yes, as you hit the ten year mark on each loan segment, in theory, your overall amount due monthly goes down (ie, after ten years, you’ve paid off xxx dollars, now it’s a lower balance.) But you’re still locked into years of payments.
No one should take the loans just because they’re available, but only when you know how you will afford to pay them back. I am not in favor of a HELOC, you’re counting on a stable housing market. And, what about your own need to save for retirement?
I’m surprised you don’t have a better idea of what merit he may get. Some NPCs tell, upfront, what he qualifies for. If this is more random, I’d be explaining to mine that his acceptance of an admit depends entirely on what aid comes through.
In fact, my expression to mine was: No school is a dream college, unless we can afford it.
Good luck.