Trust fund and FA

kayf
Wed, 22 Jul 2009 11:49:53 +0000

DRB, I would strongly suggest the 529 move and NOT using the money to pay off of mom’s credit cards. Also, would like to point out, mom’s credit card debt can be forgiven in bankruptcy – if either child or mom has to take out student loans, those can not be. I would be very hesitant to in effect switch student loans for cc debt – especially for a family where mom appears teetering financially.

35K – or 8.75 per year (assuming kid graduates in 4 years) is barely enough to cover in-state tuition where I live. Even adding in Pell grants, and loans, this kid will not be living the life of Riley.

I agree with the group that says full ride not likely, except at ivy league or third tier schools. That being said, I am a beleiver that a motivated kid can get an education at 3rd tier school.

I am a single mother too. It is time for mom to realize that she may have to wait tables, etc. In the current economey, tough, but I am certain grandparents meant this money for college. Also, has mom checked with lawyer – is she in a state where dad can be ordered to contribute. In short, i think mom is taking easy way out. If you were a true friend – IMHO – unless she is mentally or physically challenged – you would tell her to wake up and smell the coffee and take care of her CC debt.