"We managed to get her through college without her (or us) taking out loans, so when she graduates she'll be in the best position to launch that we could give her. That's good in itself, of course, but I also learned recently that it's good for another reason. A few months ago we paid off The Boy's student loans. The loans had been in his name, as traditional student loans are. When we paid them off, his credit score took a hit!"
"As a young man starting out his adult career-weighing options for places to live, thinking about medical school(s), grappling seriously with adult choices around locations and relationships-taking a swift kick in the credit score has real impact. He doesn't have enough spare capital lying around to, say, buy a house for cash. At 24, most people don't. I certainly didn't. A new place and/or a new tuition bill will require debt, which is more expensive when your credit score is lower."
The family paid for their daughter's final college semester and completed the last FAFSA. The daughter will graduate without student loans, positioning her for a stronger financial start. The family also paid off their son's student loans, which had been in his name. Paying off those loans unexpectedly lowered his credit score, reducing access to affordable credit during early-career decisions. Lower credit scores raise borrowing costs for housing or additional tuition and can hinder location and career choices. Minimizing student loan debt, for example by starting at community college for common introductory courses, can significantly reduce overall education costs.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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