Hi Money Minder,
I’m in a bit of a pickle. My son is in his final year, and I’ve realized that I’m about $4000 short for his education expenses. I don’t have that extra cash lying around, but I need to figure out a way to get it.
Should I look into getting a credit card with a 0% intro APR and see if I can transfer the balance to my checking account? Or maybe consider Parent PLUS loans, even though the interest rate is quite high at 9%?
Some additional info: my son will graduate with $22,000 in student loans, which I think is manageable. I haven’t taken on any other debt to fund his education, and I only have my mortgage and credit card bills to handle, which I pay off every month.
Thank you for your guidance on how to tackle this situation!
Best,
Budgeting Mom
Response from THE MONEY MINDER:
Hello There,
Sorry to hear about the financial shortfall you’re experiencing as your son enters his last year of studies. Given your situation and the need for an additional $4000, it’s crucial to approach the matter methodically and sensibly. Based on the details you’ve provided, borrowing the $4000 seems like a practical choice.
One option you could consider is finding a credit card with a 0% introductory APR on balance transfers. While this can provide temporary relief, it’s essential to be diligent in managing the repayment terms and avoid accruing interest after the introductory period ends. Some credit cards do allow balance transfers to your checking account, but it’s wise to check with the card issuer for specific details and conditions.
Another option could be Parent PLUS loans, though the interest rate at around 9% is relatively high. It’s worth comparing different loan options and understanding the repayment terms to make an informed decision.
Considering your son’s manageable student loans and your responsible financial behavior, borrowing $4000 to contribute to his education seems reasonable. Still, it’s crucial to evaluate your repayment capacity and be proactive in managing the borrowed funds. Ensure that you have a clear plan for repayment and prioritize settling the borrowed amount efficiently.
Remember to weigh the pros and cons of each option carefully, considering factors like interest rates, repayment terms, and your financial stability. Ultimately, choosing the option that aligns best with your financial goals and resources is key. If you have any uncertainties or require further assistance, reaching out to a financial advisor or counselor could provide valuable insights tailored to your specific situation.
Best of luck in navigating this financial challenge, and feel free to reach out if you need additional guidance on your financial journey!
Farewell from THE MONEY MINDER.
