The worst financial mistake a grandparent can make
After college acceptance letters arrive, many parents are in sticker shock when they see the price of tuition. Asking Grandma and Grandpa to co-sign for college loans is tempting, but a dangerous risk for the co-signer. Michelle Singletary at the Washington Post explains why grandparents should avoid this kind of commitment. It would be much better for loved ones to start college savings accounts like a state 529 as soon as a child or grandchild is born. The account is marked for education, offers tax benefits for the contributors, and has minimal impact on student eligibility for borrowing.