Raising kids costs a lot of money, and so does going to college. Many times the return on the college investment is not realized for quite a while, as most entry level jobs are at the lower end of the salary scale. Adding insult to injury is the fact that a large percentage of college students have to resort to student loans in order to pay for their education. In some cases, it is even necessary for the parents to take on student loan debt to help put their kids through college. This type of borrowing activity is causing a surge in the amount of student loan debt most people leave college with, and a good portion of that debt sits on the shoulders of the parents of the graduates.
More and more parents are taking on student loan debt for their kids, and here are a few reasons to explain why:
- The fees can be lower, and this makes parent loans a more attractive choice for some families.
- Some parents do not want their kids to come out of college behind the financial eight ball, so are willing to take on the debt needed to provide a college education.
- Lenders are pushing these types of loans as a way to ensure kids can still go to college.
- A parent loan may not figure into the calculation of total debt, and for purposes of how the federal government awards student loans this can be a big benefit to a student who is seeking to obtain a degree beyond the cost of what is available to them.
Regardless of who takes on the student loan debt, the problem with overwhelming loans is in the spotlight. This issue receives a lot of political attention, and in an election year is sure to spend more time in the headlines than in non-election years. Getting an education is part of the “American Dream”, and selling that idea to the nation is a big part of politics. But keep in mind that if you take on too much student loan debt and have difficulty repaying it, in most cases you are not able to eliminate that debt in bankruptcy. You do have other repayment options available to you, and we can help you with those choices.
For more information about how to manage debt, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.