<p>So I was about to decline my sons $4,500 Sub loan, but then thought..why not just except.
Put aside the loan money, invest it, whatever. Pay it off before interest kicks in and worst case, a loan in kids name helps to build his credit. No brainer..right?</p>
<p>Yes, loan origination fee of 1%. $45 a year...no biggie.</p>
<p>However, next year you need report that $4455 in your asset</p>
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<p>It’s his son’s money. Why would OP need to report it as an asset, as long as it’s not sitting in his personal checking account? The “Paying for College Without Going Broke” book actually recommends the plan laid out by geeps20.</p>
<p>$4,500 would only increase EFC by $252 if my asset.</p>
<p>Snowdog…I’m just thinking of not taking out full amount to pay this year’s tuition from my 529 plan. I pay it off before interest starts, my kid gets a credit bump for loan. Credit bureaus like to see different types of loans…Auto, student, CC., ect…</p>
<p>I could keep it in the %29, might gain in value, but could also lose…that would be a slight gamble…or I could just put it somewhere safe. I would probably like to keep it in a separate account so I know what it’s for…sometimes if I combine, I forget I owe a portion from the account…lol</p>