Core Points - The financial struggles of two daughters with student debt are highlighted, with one daughter working as a teacher and the other as a federal employee, both facing challenges in managing their loans totaling $60,000 each [1][2][3] - The impact of the recent changes in student loan payment plans is significant, with an expected increase in monthly payments by $400, making it difficult for the daughters to afford the new terms [3] - The parents are considering financial assistance options, including purchasing apartments for their daughters to alleviate their financial burdens [7][12] Financial Situation - The parents have a total of $1.8 million in retirement savings and have relocated to a state with lower taxes and expenses [6] - They own a home valued at $620,000, with an $80,000 mortgage and a $40,000 home-equity loan, and a car loan of $675 per month [5] - Monthly withdrawals from their 401(k) amount to $5,000, which are used for living expenses, including groceries and veterinary care [5] Potential Solutions - The parents are contemplating using their high credit rating to purchase studio or one-bedroom apartments for their daughters, each priced around $225,000, which would require withdrawing $80,000 from their 401(k) [7][11] - Financial experts advise considering the tax implications of such withdrawals and the responsibilities of becoming landlords if they proceed with purchasing properties [11][12] - Thoughtful lifetime gifting strategies are suggested as a way to assist their daughters without jeopardizing the parents' financial stability [17][19]