Should parents borrow for college or should the student?

When borrowing is unavoidable, having the student take federal loans first is usually wiser than parents shouldering the debt. Student loans build the borrower's stake in their own education, carry strong protections like income-driven repayment, and don't jeopardize the parents' retirement. Parent borrowing (Parent PLUS) makes sense only for a modest gap you can comfortably repay without cutting retirement contributions – because no one will lend you money to retire on. A balanced approach: the student borrows up to the federal limit, the family covers what it reasonably can from savings and cash flow, and parents borrow last and least. Be honest about totals; co-signing a private loan puts your credit on the line too. The guiding principle is that the person who benefits and has decades to repay should generally carry the loan. Stress-test it at wealthserene.com/tools/retirement-planner.