Who’s Going to Pay for College?
The exorbitant cost of higher education is causing many families to make difficult choices about their children’s future. When a couple is divorcing it is essential to carefully consider how to manage the responsibilities associated with the future cost of college or university tuition.
While you are working on your divorce agreement, consider some of the following issues:
- Division of obligation – if one parent has a significantly larger income or more assets than the other, each might shoulder a different financial obligation for tuition payment
- Application for loans and financial aid packages – Most colleges and universities require that both parents disclose their financial information when applying for aid. Parents should investigate financial aid policies and loan programs to determine what makes sense for the family
- Choosing a college – Many families are now choosing state universities and community colleges as a less expensive alternative to private institutions. Some schools offer work-study programs or direct scholarships
- Determination of child’s share – parents should consider how much of the burden should be shouldered by the child in the form of student loans
Parents should be aware that paying student loans and tuition payments can carry tax benefits for the parent who claims the child as a dependent. Discuss this with your accountant.
An experienced divorce attorney can help you reach an agreement that anticipates future educational costs. For more information call the Buffalo Law Offices of Randy S. Margulis and Associates at 716.886.9600 or contact us online.