“Refinance or Student Loans?”

The parents told me their commitment to their two children was to pay for their college education. One was done and the other had two years left. There was $112,000 in existing student loan debt and they have already been paying nearly $600 per month and in two plus years would be paying twice that much.

First, these are not the typical parents, but this is not totally uncommon in many cultures. They anticipated they would need another $50,000 and they still had a remaining mortgage of $21,000 with a payment of $513. Second, there was going to be no talking these folks out of their commitment of paying for the education of their kids.

I would never normally make this kind of recommendation, but we did a $185,000 mortgage for 15 years with a payment of $1323. They were delighted with this solution and that they were able to follow through with giving their children a head start in life. 

image courtesy of ddpavumba/freedigitalphotos.net