Should I pay off my student loans or should my dad?
I'm 25, working as an entry level engineer, and grossing $60,000 a year. I have $10,000 in savings and $17,000 in student loans. I'm paying down my loans until it's time to drain my savings to pay off my loans in May (my version of dave ramsey). My dad owes about $50,000 in direct parent plus loans. He is selling his house and I'm guessing he will have about $300,000 in equity (don't actually know how much). His promise was to take of college for me and my sister in the beginning (and I'm guessing she has significantly more debt and makes far less).
I have become fiercely independent. My dad want to pay for my loans, but since he is already behind on retirement at 57, I don't think thats a good idea. This is a difficult situation as he wants to pay for my sisters loans as well (she is really irresponsible with money). What do you think?
- 1 month ago
Since your father is getting close to retirement maybe just focus on paying the loans yourself. Give up your savings oh well stay out of debt.
- WillieLv 71 month ago
Use $8,000 of your savings to bring down your student down to $9,000, so you'll have not that much to pay.
- HockeyLv 62 months ago
Your dad should not have to sell his house to pay off your loans. You should pay them off.
- nancyLv 72 months ago
Since you're the one who benefited from the education, you should be the one to pay off the loans if you are able. Many parents feel that they should be responsible for paying for education, but if your dad is 57, his primary focus should be on retirement. After all, you have a lifetime to deal with this, but he only has a few years. If he doesn't feel right about it, perhaps you could put it to him this way: paying off your loans lessens the chance that he will be able to support himself adequately in retirement. If he can't do that, then you (and possibly your sister) will end up having to support him at a time when that might be more difficult than paying off the student loans now.
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- MSLv 72 months ago
If you are able to pay off your own loans, then do it. It's a good thing to do anyway, and it will help your father out in the long run. If he wants to help your sister, then that's between them. But I think it would be great if you can ease his burden some.
- oil field trashLv 72 months ago
When I graduated from high school I had a choice. I could have asked my parents to help pay for my college education or try to pay for it my self. My parents were just getting to the point in life where they did not have a lot of debts. I didn't want to burden them so I opted to work my way through college. I have never regretted that choice.
If you have money over and above your daily needs I think you should pay as much of the cost of your education as you can. You are the one benefiting from the education so why not pay up? It is the right thing to do.
- LaurieLv 72 months ago
Daveramsey.com will change your life.
- junebabyLv 62 months ago
If your as independent as you say then you should take care of your loans especially if your dad is gonna need the money, and during retirement it’s hard to come by money unless your rich or from a rich family.
- BryanLv 72 months ago
I think you are a good son. Good parents put their children first and that sounds like what your dad has done. It appears financially that you are correct. You have a long time to pay off what you owe (hopefully while also investing for retirement-look into dollar cost averaging) while your dad is behind on saving for retirement.
But, logic may not be the whole story here. Maybe dad really wants to take care of those parent plus loans and it will give him peace of mind to know that he helped his baby boy get a good start in life. That was pretty much how I felt about it with my two kids. I am around the same age as your dad. In my case, I inherited some money around the time they graduated so that made it a little financially easier to plan for my own retirement, but I would have taken care of the kids first anyway.
My advice is to try to sit down and talk to him about the issue, but I suspect he wants to take care of those parent plus loans himself.
- Anonymous2 months ago
All student loans are your loans. As long as you can pay them each month do so.