Paying off my child’s student loan
My youngest has 30,000 in student loans in his name. We want to pay those loans off for him as we have the money now and were able to get his older brother through college debt free (thanks to the GI bill for dependents). If we give him the money, does it count against the 18,000 we can gift to someone each year and/or could I go directly into the loan and pay from my account with no problem (ie over gifting on the 18K amount etc…)?
Terry Says
It really doesn’t matter since each of you can separately gift $18,000 each year.
So go ahead and pay off the loan. Or if you trust your child, gift him the money to do it.
Either way, it’s a great gift!
