Grandparents at 62 Want to Fund Grandkid's College: Here's How
A couple in their 60s with no college background seeks ways to finance their granddaughter's education after gaining custody.
You didn't go to college. Your spouse didn't either. But now you're raising your granddaughter — and you want her shot at a future you never had. That's not just admirable, it's a financial planning challenge you need to tackle right now, especially at 62 when retirement is closing in fast.
The stakes are real. You're potentially looking at funding four years of tuition while simultaneously protecting your own retirement income. Those two goals can collide hard if you don't set boundaries early. The good news? You have options that don't require a finance degree to execute.
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529 college savings plans are your first move. Contributions grow tax-free, and withdrawals for qualified education expenses won't cost you a dime in federal taxes. Even starting late, consistent contributions can compound meaningfully — especially if your granddaughter is still several years from enrollment. Some states also offer a tax deduction on contributions, which puts money back in your pocket today.
Financial aid is the other lever most grandparents overlook. Your granddaughter's situation — entering your custody after a challenging early life — may actually strengthen her eligibility for need-based aid. FAFSA takes household income into account, and depending on your income level, she could qualify for Pell Grants and subsidized loans that don't require you to write a single check. Have an honest conversation with a college financial aid office before you assume you have to cover everything yourself.
The bottom line: protect your retirement first, then layer in college funding. You can borrow for college; you cannot borrow for retirement. Set a dollar cap on what you're willing to contribute, explore scholarships aggressively, and let aid fill the gaps. Her future matters — so does yours. Continue reading at MarketWatch.com
