I'm 49 with minimal retirement savings and want to fund my son's college: am I making a huge mistake?

A 49-year-old considering borrowing for a four-year school faces long-term retirement risk. Parent PLUS loans or co-signed private student debt can require monthly payments through the early 60s, overlapping the period needed to triple or quadruple a nest egg. If retirement savings are nearly empty, the child may end up supporting the parent later through caregiving and cash transfers. Compounding from age 49 to 65 can turn $1,000 per month at 7% into about $345,000, and extending to age 70 can raise it to about $525,000. With current borrowing rates near 9%, a $120,000 Parent PLUS balance can cost about $1,520 per month, which could otherwise compound into roughly $525,000. A lower-cost path is community college for the first two years, then transferring to an in-state public school.

"“you have to look out for yourself first because nobody's going to be there to pick you up in retirement if you don't have the money.”"

"A parent who takes out Parent PLUS loans or co-signs private student debt at 49 is locking in monthly payments through their early 60s, the exact window they need to triple or quadruple their nest egg. Miss that window, and the child ends up funding the parent's retirement anyway, just through caregiving and cash transfers later."

"Invest $1,000 a month at a 7% annual return from age 49 to 65, and you finish with roughly $345,000. Stretch the same contribution to age 70, and the balance grows to about $525,000. Every dollar diverted to a child's tuition is a dollar that does not compound through those final, highest-growth years."

"“the average community college is $5,000, $6,000, $7,000, $8,000, $9,000 a year” and argued the first two years there, followed by a transfer to an in-state public school, is the sensible play for a family already behind."

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