Wicked Local Dedham: “Graduation season is as proud a time for grandparents as it is for parents.
Grandparents, especially this year, can take special pride by helping their grandchildren pay for college. And by “gifting” grandchildren money for college, they can get a gift in return. In addition to the satisfaction of helping their children and grandchildren, they can also qualify for a significant tax break.
Helping your grandchildren pay for their college education may be the best gift you can give them. As the price of college continues to increase, more students and parents are borrowing to pay the cost. They’ll do what it takes to pay for college, as a college education is required for practically any well-paying job today.
But the higher salary college grads earn is often offset by the need to pay off student loans. With U.S. student loans totaling more than $1 trillion today, many college graduates begin their careers heavily in debt and find it difficult to pay it off. Those who graduate from college debt-free begin their careers with a huge financial advantage.
So what better gift can grandparents provide to their grandchildren than to help fund their college education?”