I am non custodustial parent. son going to college in NYC (freshman) in a couple of months. Total cost approx $55,000.00/annum. he has 45% of tuition covered with grants. the other 55% the college is offering loans (Perkins - $2,400.00, Stafford - $3,500.00) to my son and (PLUS LOAN - $21,000.00) to his mom.
I have just about enough in the 529 to pay for what is not covered by grants but would like to try and stretch this out because I have a feeling the kid is going to want to go to Grad School and I would like the money to remain in the 529 account as long as possible earning interest so that something might be left for that if/when it happens.
How do I work it out to accomplish the following:
1) I assume I would have my Ex wife refuse the PLUS loan of $21,000.00 as that seems to be one of these loans you have to start paying back right away. I might as well just pay that money to the school from the 529. That seems logical. Correct?
2) I would want my son to take both the Perkins and the Stafford loans. I understand the clock does not start ticking until the stuent graduates after four years. I am assuming approx $25,000.00 for the 4 years. How do I arrange it so that I just pay off the $25,000.00 in one shot when my son graduates.
3) My son will need to buy a Mac that will cost in the $3,000.00 range. It is not stipulated in any manual or brochure from the University that he must buy this. But if he does not he will be the only student in the entire school that does not have one. Therefore it is a necessity. How do I cover this expense thru the 529? Is this a problem? They sell them at the School's bookstore. Does a receipt from the School bookstore help me?
4) My son will need approx $4,000.00/annum in extra expense money to survive in NYC. How do I get this money into my son's hands from the 529?
If anyone can help me pls reply. Thanks.
Best Rgds,
Bobby-B