Education is the best legacy any parent can leave his or her child or children. It is, therefore, vital that parents save enough funds for their children’s education, notably for college. And not only should they just bother themselves about saving money, but to advice them regularly on the great value education can give them.
Many parents, though, face financial problems when it concerns their children’s education. It’s inevitable but then, we also know how hard parents work just to be able to give the best education to their kids. There are various options parents could take to finance their children’s schooling.
Experts say taking a loan from your 401k contributions can be done. Although your 401k plan is not required to make loans, about 85 percent of these plans offer loans. You can borrow up to $50,000 or half of your account balance and you are given five years to repay the loan, normally through salary deductions.
Another option is to apply for hardship withdrawal. You must, however, prove “an immediate and heavy” financial need to avail of this loan. Paying tuition and other related educational fees are included.
