<p>I know it’s a morbid subject, but yes, something can happen to your child and you might lose your money when you lend it out. So it should be money you can afford to lose. Even with insurance on the kid, things like just mentally/emotionally not being able to handle a course of study, or deciding it repugnant can happen, I know a lot of kids who did not meet their potentials at least yet, and would not be able to make a dent in what the parents put into education for them. If the parents were really looking at that money as investments and counting on it, they are likely to sadly be out of luck. </p>
<p>The joy of knowing your kids have gotten those college years, and hopefully education, preparation for becoming a working, earning member of society is even a lot. If my kids get to that level, I am happy. Not expecting to get a dime back from them. </p>