Grandparents at 62 Seek Ways to Fund Granddaughter's College

A 62-year-old couple who never attended college themselves is now facing one of the most pressing financial questions of their retirement years: how to pay for their granddaughter's higher education after taking custody of a child whose early life, in their words, "was very challenging."

The situation highlights a growing demographic reality in the United States, where millions of grandparents have stepped in as primary caregivers for grandchildren, often absorbing unexpected child-rearing costs well into what were supposed to be their savings-preservation years. For couples already managing fixed or limited incomes near retirement age, the added burden of college funding can feel insurmountable without a clear roadmap.

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Financial planners generally point grandparent-caregivers toward several strategies: 529 college savings plans, which offer tax-advantaged growth and can be opened by anyone, not just parents; direct tuition payments to institutions, which are exempt from federal gift tax rules; and FAFSA considerations, since a grandchild's dependency status and custody arrangements can significantly affect financial aid eligibility. The couple's lack of college experience themselves may actually make professional financial guidance even more critical, as they navigate an unfamiliar system with high stakes.

The emotional dimension here is equally significant. Grandparents who take legal custody of a grandchild often do so under difficult family circumstances, and the commitment they make extends far beyond housing and daily care — it reaches into long-term planning for that child's future. Starting college savings conversations early, even in a child's teenage years, can still yield meaningful results when combined with scholarships, work-study programs, and institutional aid.

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