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When I graduated from school, I believe I had about $17k in school loans. I went to Northwestern University, which is a very costly private institution. I believe that they raised the tuition rates twice while I was there. I would not have been able to attend but for the fact that the university gave me a bit over ten grand each year in free money. This was not money that came from scholarships or what-have-you, but money they just gave to me because I wouldn't have been able to afford an education there otherwise. In fact, scholarships are detrimental to this aid process; any scholarships count directly against the grant money they give you just for showing up.

Even with the pretty penny that the grant money brought in, my education was still financed with loans. Forunately, when I graduated, my parents gave me one of the best gifts I think that any middle-class parent could give their college graduate; they paid off my school loans. I did not even have to think about them. They did the same thing for my older brother when he graduated college, and I'm real glad they kept up the theme!

With the job that I got after graduating, I could have probably paid off my school loans by now if I wanted to, but not having that axe hanging over my head has been a godsend. One dollar today is about two and a half dollars in ten years. So that seventeen thousand means that my net worth in ten years will be approximately $42,500 greater, assuming I had the money to pay off the loan immediately. More likely I would have paid it off over a period of two years (at least) meaning that in ten years I will be over $50k richer than if I had to pay off those loans.

Even a small amount against college debt as soon as the person's grace period is over. A $100 right away is going to be worth more than twice that in ten years.

That is an amazing gift, assuming I manage my finances assiduously in the coming years. Financial security is way better than a car or a vacation, as far as I'm concerned.