I'm with you on that. So it seems most of us think the kids should have some skin in the game.Or shall we say responsibility?( at the minimum graduate)RetireJapan wrote: ↑Fri Apr 07, 2023 11:36 am I'm a fan of people getting loans to pay for uni. This gives them skin in the game and brings it home how much money THEY are paying for the privilege. It also gives more options to the parents/guardians: they can always help to pay the loans later or pay them off entirely if they choose to, but also have the option of not doing so.
I think there can be a guilt factor here. as we often want to push and encourage our kids to go to uni, but we also know this lands them in debt. Of course if your kids want to be an engineer, we can see that as a good investment, but we might have a different view if our kids take a humanities or soft subject,eg philosophy.
Anyway here are my calculations if we take out the loan,( no interest charged until post-graduation) and do NOT withdraw the money from our funds, the 7 million yen sitting there, could help with the fees at the end of graduation.(if we think its a good idea)
I just don't like seeing the idea of nearly 4M or 5M yen just flying out the door, when the money sitting there can do some of the heavy lifting, especially with compounding at a rate higher than the loan interest rate. Damn, I wish I paid more attention to my arithmetic classes. LOL