Student Loan Kindergarten
March 30, 2012 by staff
Student Loan Kindergarten, There is an increase in the number of parents taking on loans to finance their children’s education long, long before college – the K-12 years!
According to a piece on SmartMoney.com, the average cost of private school is around $22,000 a year, up from 4 percent a year ago and up 26 percent from 2006-2007. Parents are going in deep. Worse still, these loans can be expensive, with interest rates of 4-20 percent, though lower rates are given to parents with higher credit scores.
With college student loan debt having passed the $1 trillion mark recently, and already starting to cripple the country, what in the world are these parents thinking?
I’m all for giving your child a great start, setting them up for the future. The thinking goes, if my kid is in the private school arena, they’ll have an edge when it comes to applying for college. Maybe, maybe not. There are few guarantees in this life, and that’s not one of them. College admission is based on a lot of factors.
Why am I so ticked? It’s more frustration than anything. Parents have the best intentions but things can get twisted in a way that backfires and hurts the family finances and more. The stress of deep debt can wreck a family in a hot minute, and combine that with the tremendous pressure kids feel to perform given all the money that’s being shelled out, and it can get ugly.
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