The thought of shelling out $100k to $250k for a college education keeps many parents awake at night. I was one of those parents. A few years ago, I had too much coffee and wrote about one way to cover the costs of a college degree. Disclaimer: The interest rate for PLUS loans has gone up a bit since then, but 2-bedroom condos in that building are now for sale at $146,000 and $165,000.
One way to pay for college: Say your daughter wants to go to University of Oregon. In-state off-campus cost of attendance for 13-14 is $24,352. Borrow the full $24,352 in a PLUS loan (Federal education loan for parents) with a current interest rate of less than 6%, and you can defer the payment of the principal until 6 month after your daughter graduates. From the PLUS loan, $9,763 goes to the University to pay for tuition/fees, leaving a $14,589 credit balance to pay for room, board, books, etc. This goes into your pocket, half at the beginning of the fall semester, and half at the beginning of the spring semester.
I'm a proud mom to my own college aged daughter.
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