Is this a reasonable plan for paying?

thumper1
Mon, 01 Aug 2011 14:37:53 +0000

Since they have around 160k saved in mutual funds and such (Franklin Templeton is the specific name), would they be able to draw from these funds and contribute some to paying?



Is this a pretax tax sheltered annuity with funds invested in Templeton? If so, any withdrawal would be added in as INCOME AND your parents would have to pay taxes on it.

They need to contact their financial planner (whomever helps them with their Templeton investments…if anyone) or check the Templeton website. Sometimes folks can borrow against these accounts for college expenses. BUT there usually are stringent provisions for repayment to these accounts. They need to check THEIR accounts to see what is permitted and what is required.



Also, is it a good idea to get a Stafford unsubsidized loan to cover the gap between what they can pay and what the EFC is at?



you (the student) will be eligible for up to $5500 in Stafford loans in your name. Many students take these loans to help fund their college costs.