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Montana | Trying to figure out the best way for my son to pay for college.
He has a CD that he could borrow against at 2% above cd rate. If his CD rate is 5% that now makes it a 7% loan correct. vs a college loan of 6% from a bank.
Now if this is right the way I'm thinking he would receive 5% back from his CD interest as income and pay tax on that and then pay 7% on the loan corret, or am I not thinking right. verus paying 6% on a loan from the bank. So which is a better deal?
Yes he could pay for it with the cd but once that money is spent its gone forever, versus making payments.
What ideas or loan ideas do you have? TIA. | |
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Looking for financial advice on college loan.
