Daughter in grad school. Inherited some $ and cashed some while market was good and put in “high” yield savings to protect from market losses. Has some left in investment fund. I own 529 with daughter as beneficiary. Nobody else will use 529, except her potential children.
None of the savings vehicles alone will pay for the rest of the grad degree, which has 5 more semesters. All together were just about what was needed for the degree until the March market drop. This program does not have grad assistants and very few scholarships, especially for out of state student; degree is so demanding that students cannot work. Because the program is a cohort, can’t transfer to less expensive in-state school now; would have to start all over in a new program and waste the already paid $40,000.
Question: Which source of funds to use first/now for summer and fall tuition? I can see pro and con to using the cash and letting the other funds recover. Likewise I can see pro and con to using 529 and save the safe cash for later. But will there be recovery and the investments fall further in this unknown covid world? If only there was a crystal ball! We are also thinking about her taking student loan now when rates are low because of Covid, pay interest now on loan, then pay off loan principal at end of degree when investments have hopefully recovered. If not recovered, she would just pay off loans with income.
Opinions?