Here is today’s Question of the Day:
Would you borrow from your 401(k) to pay for your kid’s college education?
I would ONLY do this if I had a lot of money in my 401(k). But, it would have to be A LOT OF MONEY! Seriously, I think this is a bad idea. Parents who do this are jeopardizing their future because they have a limited number of years to replace those borrowed funds. The kid, on the other hand, has a career in front of them . At the very least, parents could help pay for the loan after the student graduates from college.
So, my answer is: no way. I would not borrow from my 401(k) to pay for my kids’ college.
What about you?