Ask Terry Questions student loan payments for granddaughter

student loan payments for granddaughter

By Terry Savage on December 11, 2018 | College Savings / Student Loans

I would like to help pay for my granddaughter’s college loan now due. Which is the best way for me to do this? What are the limits on amts, etc? We would like to avoid interest and pay it off quickly.

Terry Says

How lucky she is to have grandparents like you!

if you trust her financial judgment, send her a check for $15,000 before year-end. Or ask for her student loan payment info and send them a check directly.

Then in January, do it again.   If you are married, EACH of you can give a $15,000 gift each year

If that  doesn’t make  a big enough dent, you can always pay off the rest — but the excess will be counted against your lifetime exemption from estate taxes at death  — currently at slightly over $11 million.

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