<p>My son has been fortunate enough to receive full-tuition scholarships to a few different schools. Oh my gosh. What a relief!</p>
<p>So, now I know that all he and I have to come up with is room and board and books and fees, which will run us, it seems, about $12,000 a year.</p>
<p>I have saved up very little in a 529 plan for him. It wasn't a whole lot to begin with, and like so many people's funds, it lost almost 30% in the past year.</p>
<p>I was thinking, wouldn't it be smarter to have son take out Stafford loans each year, for the maximum allowed, and I pay the remainder of the bill with the 529 plan? He would be accumulating debt, yes, and there would be interest to pay. BUT, I would also be able to spread the 529 over a long period of time and give it a chance to possibly grow in value a little, AND I wouldn't have to look for other sources of funds, at possibly higher interest rates, so soon. I also think it's kind of a good thing that he would have some financial responsibility for his own education, by taking out the loans each year.</p>
<p>Or are there whole other options that people traditionally pursue, other than 529s and Staffords?</p>
<p>What is the current wisdom on how to balance loans with 529's?</p>