Show Suze the Money!
Together, the couple's monthly take-home income is about $6,500, and they have $6,300 in monthly expenses. So far, they've saved a total of $7,500 in college funds and have another $9,000 in an emergency fund.
Jamie says he intends to borrow the money through student loans and pay it back monthly over time. To borrow $160,000 for Alex, Suze says Jamie would likely get a PLUS loan through the government. At 8.25 percent over a 30-year term, Suze calculates a repayment of $1,275 each month. The interest they would pay over 30 years on that money is a whopping $300,000!
And that's only for one child. "So not only will Daddy and Mommy having to be paying every month on one child till they are 80, very shortly, they are going to be paying $2,500 to $2,600 a month for 30 years," Suze says. "They're bringing in as much as they have going out right now."