[USER]

Age 53 federal worker. Would like to work for another 9 more years. Mortgage for 5 more years ~150k (house currently valued at 900k) No other debts.

TSP about 1.7 million. About $60k bank account.

Daughter recently graduated professional school and has about $132k in loan( interest rate 6 percent). She currently makes only $60k for about next 1.5 years. After that potentially $130 k or more.

I wanted to help her with her loan. Not sure what to do.

TIA for good recommendations.

[Gina]

Curious why you didn’t pay the tuition when she was in school or save for it prior. I would help her for sure.

Starting out with that much debt makes it hard to get ahead.

[Rick]

Do you have concern about your job stability given recent/current federal job shake up?

That is not a political comment just noting it’s a rare time thwt the public sector is experiencing something that happens every few years in some sectors of the private sector.

If any type of concern from above question, I would pause any help to the kid as you can always help later and with more money but it’s kinda hard to clawback gifts to kids especially when used to pay down loans.

[De]

You never mentioned your salary and I assume since you are a federal employee that you also have a federal pension. How do we advise you without knowing the full picture?

And your daughter could pay off her loans in 2 years by living w you (rent free) and picking up a side hustle.

[Matt]

If you live close to each other, the most helpful thing you can do is allow her to live in your home for the next 3-4 years rent-free while she aggressively pays off her loans.

[Vanessa]

How do you feel about how you are set for retirement? Do you have disposable income beyond that to help? Your daughter is looking at a financially tight 18 months before being in a much better place.

That’s not very long. Does she have any options to reduce the payment based on income?

[Author]

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