My oldest will be heading to college in 5 years. I don't have a lot of money saved up for him. He knows that and I told him he will be responsible for most of his costs of college education. I know many other kids graduating college this year will be paying for student loans for a few years.
Which student loan option should my daughter take: a fixed-rate loan at 6.25% over 10 years for $20,000, or an adjustable-rate loan for the same amount, initially priced at 2.75%, over 10 years and tied to the one-month Libor?
Obviously, much can be saved with the adjustable-rate loan as it stands now, but there's the chance that this could change down the road. What would you recommend?
Pay off student loans or fund Roth IRA?