One solution for grandparents who want to pay grandchildrens tuition is to delay paying for college until the students senior year. The student uses whatever financial aid they are eligible for and makes up the difference with college loans. Then in the senior year, the Grandparents pay off the loan. Or continue through graduate school and do it then. Interest is deferred until after graduation, and the payments could be spread over a few years to minimize any tax hit for the student.
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One solution for grandparents who want to pay grandchildrens tuition is to delay paying for college until the students senior year. The student uses whatever financial aid they are eligible for and makes up the difference with college loans. Then in the senior year, the Grandparents pay off the loan. Or continue through graduate school and do it then. Interest is deferred until after graduation, and the payments could be spread over a few years to minimize any tax hit for the student.
Post: How much financial help should parents give their children?
Link to comment from February 6, 2022