runmanTX wrote: ↑Thu Apr 06, 2023 2:02 pm
May not relate directly to Bubblegun's situation but for what its worth, the JASSO loan we got was a fixed sum (120k) which is paid directly into my daughter's bank account for 3 years.
As a side note, we weren't eligible for the 500k entrance fee payment as they said I made too much money. Go figure.
Thanks for that runman.Very useful.
I will ask about the entrance fee. The wife usually deals with all this and if i start to interfere.....well, eyse start to roll, and the tutting starts.
I certainly don't mind the 500K, although it would be better if they were responsible for the whole lot.
There are certain reasons we think our kids should be responsible for their student loans.
1) any money we have in the NISA or funds could hopefully grow at 6% a year.
2) that's way above the interest rate JASSO charge
3) if I am right, the interest starts when they graduate. So it seems better to let our money grow while they are at uni
4) if they drop out, then they are responsible for the loans.
5) if they graduate, I hope to have enough money to help pay it off.
( although I wonder if its better just to let them pay it off, and let the 5 million or so yen that would have been given to the uni grow)
This is why I need a financial advisor to work out the math.
I am assuming if the interest rate is about 1.5% on the loan, and the return on 5 million is 6%, I am better to pay off the loan after they graduate.
The difference is 4.5% between the Rate of return and the interest rate.
Is there something wrong with my thinking?
Baldrick. Trying to save the world.