re: Student Loans

I'm a higher ed administrator and work with these loans all the time. Im also a finance nerd.

Do NOT take from your 401k and payoff her student loans. What you should do depends on the following:

1. Are these loans Title IV (normal student loans)?
2. If not, are they private student loans (from a bank, you may have been a cosigner).
3. If not, are they Parent PLUS loans, the worst student loan product?


If the answer is 1, you need to have her consolidate them into a Direct Consolidation Loan at student aid.gov. This will give her several repayment options, tied to her income. She should be able to manage the payments on her own and knock them out. And if the government "forgives student loans," this will be the type of loan forgiven.

If the answer is 2, it's a normal loan. You aren't able to make income contingent payments and if student loans are forgiven, you will not be eligible. You can shop around for a better rate and consolidate them.

If the answer is 3, this is your loan, not your daughter's. She has zero obligation to pay them back. They are also not eligible for. any forgiveness programs.