<p>“it is $$ we have designated for retirement. We know we will need it, but not for 20 years or so.”</p>
<p>That puts a whole other spin on things. If you are going to NEED this money, you should not be lending to anyone, unless it is more important to you what the borrower’s NEED is for it. There is no guarantee that your child or ANYONE will be able to reimburse you. Things happen in life where it is possible that any given person cannot return borrowed money regardless of intention to do so, and priority as well. Now if your son NEEDED a bone marrow transplant or other medical procedure where his life is hanging on a thread, that’s a whole other things. But for school, when there are other ways to meet the cost, nope. </p>
<p>What if your son gets hit by a car after getting the degrees, before he earns penny one? Or get some debilitating condition that is going to COST money, forget paying ANYONE or anything back money owed? It happens all of the time. Or if he just doesn’t find a job that gives him any leeway and he finds himself with that loan monkey on his back that he owes YOU? You’re just giving him an ulcer in situations like that. </p>
<p>Lending money you NEED is a very bad idea. When you lend money, unless it’s for life saving things, you should do so with the understanding that there is a significant risk that you won’t get it back when you need it. </p>