How to Avoid Using Retirement Savings to Pay for College
Paying for college is one of the largest financial challenges many families will face—and for parents who feel like they’re behind on savings, dipping into a 401(k) or IRA may seem like the easiest solution. But it’s a move that can derail your financial security for decades to come.
Here’s Why Using Retirement to Pay for College Is Risky:
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Withdrawals from retirement accounts are counted as income on future FAFSA filings, reducing your student’s aid eligibility.
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You’ll lose years of compound interest that you may not have time to rebuild before retirement.
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Penalties and taxes can take a significant chunk of the withdrawal.
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There are no loans for retirement—but there are many options for college funding.
Smarter Strategies to Consider Instead:
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Explore colleges that offer generous merit aid based on your student’s profile.
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Use a mix of cash flow, tax-advantaged savings (like 529s), and financial aid.
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Look into work-study or campus employment opportunities.
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Appeal financial aid packages based on changing financial circumstances.
Remember: Your child can borrow for college—but you can’t borrow for retirement.
Contact Us Today:
Want help building a plan that protects your retirement and funds your student’s education?
📞 Call us at 770-662-8510
📅 Schedule a free consultation: Book with Jarad
Or visit our Contact Page: https://diversifiedcollegeplanning.com/contact-us/
