Sharing College Costs with Children

twoinanddone
Tue, 04 Jun 2019 02:31:43 +0000

@mdpmdp there are direct loans from the government at lower interest rate (~4% now, it goes up and down). For freshman the max is $5500, and of that $2000 is never subsidized. If the student qualifies for some or all of the remaining $3500 to be subsidized, the government will pay the interest on that amount until the student is no longer in school plus 6 months.

One of my kids did take the whole loan, so $2000 x 3 years (didn’t take freshman) = $6k. She just got the bill to convert it to repayment status. and the interest accrued over those 3.5 years (she took one extra semester) is just over $400.