<p>I am a single mom and have saved $43000 for my son's college. He will go to a state school this fall ($18-20000/year). He has been awarded both Stafford loans full amount $5500. Should he take both loans or only the subsidized loan or none at all and spend down the savings? I want to help him leave college with minimal debt. Taking the subsidized for $3500 seems like a no brainer...maybe I am wrong. Thanks.</p>
<p>personally, I’d take the subsidized (and I did with my kid). You never know what your job situation will be in four years. If still your situation is still strong, you could just pay off the loans at graduation.</p>
<p>I agree with the above! Take the 3500 at least. You never know if some financial set-back/job loss will cause a need to use some of that savings for a family need.</p>
<p>BTW…there are always unforeseen expenses associated with college. Even just going to Parents Weekend can cost $1000+ if transportation, hotel, rental car, and other expenses are required. We were able to drive to our kids’ Parents Weekend, but 2 nights of hotel, tickets to the football game, restaurants, etc, cost us nearly $1000. </p>
<p>Also…hopefully the savings are in your name. If not, move it to your name for future FAFSAs.</p>
<p>And…as mentioned above…at graduation, you can pay back the loans with savings.</p>
<p>Personally, I would take both subsidized and unsubsidized loans. Things do happen, I know. If your son gets to be a junior and you know you don’t need any additional cash ever, then decline to take further loans. </p>
<p>Just another thought…would you feel comfortable conservatively investing some of that college savings to get a better return than you are getting in a savings account?</p>