Ask Terry Questions Son’s College Fund and Tuition Payment

Son’s College Fund and Tuition Payment

By Terry Savage on July 07, 2022 | College Savings / Student Loans

We have a small amount invested in College America, Capital Group’s American Funds for our children’s college tuition. We just received our June statement and the value has dropped by 25%. I had not transferred the balance to a safer fund as we had been enjoying nice gains over the years.
Our oldest child will be attending the University of Wisconsin in the fall and our first tuition payment is due mid September. Our plan was to use this money to pay for his first semesters tuition. Now I’m thinking maybe we should take out a federal loan and leave his college fund alone in hopes that we will gain back that loss. Please advise.

Terry Says

I think that’s a wise choice. Did you file the FAFSA form for Federal Student Aid? Beware of expensive Parent Plus and private loans. A home equity loan might be your least expensive choice.

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