Thread: How to best take money out for college

See if your daughter is eligible for chapter 35 http://www.gibill.va.gov/pamphlets/C...et_General.htm

or if there are any other potential monies available first. No need to spend all your savings if there is another way to get the funds.

Just thinking out loud... Have you considered taking out a loan outside of TSP and using a TSP annuity to make the payments?

I don't know for sure if you can get a TSP loan if you are retired (anyone?) because I know you have to be in pay status. Is retirement considered paystatus? That's why I mention the non-TSP loan.

Originally Posted by ocean0927

I am retired from VTANG, am 55 and want to use a big chunk of my TSP for my daughter's college. What is the best way to do this without loosing a lot of money? I am retired because I am disabled from getting hurt in IRAQ. My daughter is in 12th grade so I have a little time to figure this out.

The TSP is a leg to your retirement! Hold on to it. Find another resource to get your daughter in college!

There are other esources to set up college educational funds, etc.

IMHO: You should have been a law&^% chasing ambulances! Big money!... No.. you decided to serve your country!...----It's just not fair!....But then again....who controls whats fair??....

Also, she should get some fairly cheap Stafford loans, and maybe a Perkins. If you do take out other loans, be consider the Federal PLUS loans.

They can be consolidated with the other Federal Education loans for an overall lower interest rate, and the rate will likely go down after a couple of years of consistent payments.

Private loans will be much more expensive and cannot be consolidated with the Federal loans.

I made a boo boo and took out one of the private loans, and now will be over borrowing on FED Plus loans to pay it off and get everything back into the FED loans for consolidation in a couple of years when the kids start to graduate. Then they can get great jobs and help with the payments.

I would avoid tapping your TSP unless there is no other way, as it is a strong source to grow capital.

It is worth more as investment than as bank.

However, you gotta do what you gotta do. When I get to retirement, I might decide to pay off these loans from TSP just for the psychological relief of being done with them, but it probably would not be my most prudent move financially.

Home equity lines of credit can also be a reasonable option if all else fails. Tax deductible interest, decent rates, etc. After tax cost of HELOC may even be less than student loan rates, just have to run the numbers. We used this option to pay off my son's student loans so he wouldn't be saddled with the debt when starting his new life/career after school.

Originally Posted by Scout333

Home equity lines of credit can also be a reasonable option if all else fails. Tax deductible interest, decent rates, etc. After tax cost of HELOC may even be less than student loan rates, just have to run the numbers. We used this option to pay off my son's student loans so he wouldn't be saddled with the debt when starting his new life/career after school.

Great point! And we may employ this option if need be as well.

Ocean-

There are a number of organizations that can help, depending on the type of injury, whether it was combat related, purple heart, or just an injury while in theater. Many groups out there want to help, they just have to connect to you.

One such group is here: http://www.unitedpatriots.org/what/college-funding.asp

Others are out there.

If you are in Vermont, try this link:

http://services.vsac.org/ilwwcm/conn...'+Children

There are others out there as well.

If you would like some help identifying other sources of college money for your daughter, just PM me and I'll see what I can do to hook you up.

Thanks