Saving for college, and saving for retirement. Parents know both are important, and many of us worry that we’re not saving as much as we should for one or both. But if you’ve ever considered doubling down on the retirement stash and then just relying on loans to pay for college, consider this tip for parents from financial aid expert Mark Kantrowitz, as shared in this piece.
“They should not forgo college savings in favor of retirement savings. ‘So long as the interest rate on the [college] loan is higher than the rate paid on [retirement] savings, you’re better off saving for college AND retirement,’ says Kantrowitz. ‘You’ll end up with more money for retirement than if you had just borrowed for college and repaid those loans.’”