As divorced parents, something you may be discussing as the end of 2019 approaches is how you’ll support your child when they enter college. There are lots of things that parents need to consider, such as who receives tax credits, who takes out loans and receives the best interest rates and which household should have custody in the best interests of lower-cost schooling.
Some parents have gone as far as to divorce to make things easier on their children. Sometimes, a couple makes too much money to qualify for the loans or government support needed to send their child to school, but independently, they’d be eligible and save thousands of dollars.
An investigation that was performed by the Wall Street Journal and ProPublica Illinois found that some parents have given up legal custody of their children to help them become eligible for financial aid that is generally reserved for needy families (in those cases, the offers were rescinded).
The truth is that it’s hard to navigate paying for your child or children’s schooling, especially if you’re separated already. Some divorced parents build up a savings for college by saving the monthly child support they receive. Others work together to pay for their children’s tuition out of pocket when possible.
Student loans and schooling are perhaps not as transparent as they should be, but you do need to consider them when you’re planning a custody schedule for your child. If they are going to benefit by being in one home over the other due to financial constraints, then that may be what you want to do.