College Loan Options Every Menopausal Mom Should Know
Part THREE
Did money decisions suddenly feel harder the moment perimenopause kicked in? Women in perimenopause and menopause report more financial anxiety than women in other life stages.
INSIDE THIS ISSUE:
Master the three essential student loan options that protect your retirement while still helping your children
Master the strategic timing of financial decisions that outsmart hormone fluctuations
Learn the crucial differences between loans in your name versus your child's name
THE BORROWING REALITY
Why Menopausal Moms Need a Loan Strategy
This is the final part of our 3-part college money guide series for menopausal moms. In our first article, we explained college costs and tax breaks you should know about. Our second article showed you different ways to save money, like 529 plans. Our last article will help you understand student loans.
Many women dealing with both menopause and college planning need loans. They're still paying for homes and other family needs when their kids start college. But making borrowing choices during hormone swings needs extra care to make sure they're making good loan choices that help their kids without hurting their own future.
Before we dive in—I was conflicted about talking about this topic, especially as someone who was almost half a million in debt after medical school. But I also know that loans were my only option, as they may be for others. I view this topic—with both caution and understanding that sometimes, education debt is the bridge to opportunity.
STAFFORD LOANS: YOUR FIRST FINANCIAL DEFENSE
Federal loans should always be your starting point. Why? They stay in your child's name and come with protections that can be lifesavers.
Stafford loans come in two flavors—one interest-free during school and one that's not. Know both.
Subsidized Stafford Loans: Your Priority Option
The government covers all interest during school years
No payments due until 6 months post-graduation
Fixed 6.53% rate gives predictable costs
Annual limits of $3,500-$5,500 based on year in school
Must show that you need financial help
This interest-free period gives you breathing room when your own productivity might be taking a hit.
Unsubsidized Stafford Loans: Your Solid Second Choice
These loans charge interest from day one, but still offer critical advantages:
Almost all students qualify regardless of financial situation
Stable 6.53% fixed rate provides certainty
No payments required during school years
Borrowing limits of $5,500-$7,500 yearly
When your body feels like it's on a roller coaster, these fixed-rate loans provide the steady financial ground you need.
PARENT PLUS LOANS: YOUR STRATEGIC RESERVE
When federal student loans reach their limits, many parents consider PLUS loans.
Cover remaining costs after other financial aid
More accessible approval process than private loans
Fixed 9.08% rate stays consistent throughout repayment
Flexible payment options during your child's enrollment
These loans attach to your name, not your child's. During menopause, it's extra important to think about how close you are to retirement before taking on big debt.
PRIVATE STUDENT LOANS: CONSIDER WITH CARE
Private loans have their place in a comprehensive strategy, especially for families with strong credit profiles. When evaluating these options:
Compare multiple lenders to find competitive rates
Look for fixed-rate options to provide stability
Consider co-signer release features to protect your credit
Evaluate hardship provisions before committing
Understand exactly how variable rates might change
The variable rates combined with reduced protections can amp up your anxiety during an already challenging hormonal period.
Remember that hormone changes won't last forever, but your money choices will affect you for years. With careful planning, you can handle both menopause and college funding with confidence and clarity.
Note: * Interest rates reflect the 2024-25 academic year and adjust annually. Always verify current rates before finalizing borrowing decisions.