Raybyrnes, I don’t understand your planning tactics. You think that people should micro-manage their lives to arbitrage the spread between a Stafford loan and personal savings. You’re willing to consider convoluted tax implications, but you don’t think that people should rent at 1/2 the cost of carrying a house.
Most people can’t even manage their own finances, much less arbitrage interest and tax rates. Shifting some financial management responsibilities to teenage children is a bad idea.
Rent vs. buy is simple math — carrying cost is $3000/mo vs. rent of $1500/mo. I’m not talking about timing the absolute bottom of the housing market but waiting until it makes financial sense.
Rent/lease vs. buy is the first financial planning analysis any household or business should do. Ask any financial planner/CPA worth his money. Any person who doesn’t at least perform that analyis prior to buying is dumb for sure!
Sure, if you bought already, then you have to find ways to make the best of what you already own.
If you could have $1 today wouldn’t rather bank it rather than spend it on mortgage interest then stress about how to recover it tomorrow, at the expense of own sanity, personal integrity and by involving your children? I don’t have kids, but I did, I wouldn’t want to put them through financial-aid screening appointments every quarter to get something that is intended for students in need. Those are the wrong values to teach your kids. Think about how they’ll feel about their dad’s tactics.
