College Loans Lead to Debt for Parent and Child
Much has been said about the burden students take on when they take out loans for their education. How about Mom and Dad? Many times the burden is share by the family.
Our three children were always told that Mom and Dad would pay for their college tuition and that anything more than that, graduate school, they would have to cover. One of our children decided to get her BS degree from a state college. Since it was in the southern part of the state, room and board added to the total cost.
We dutifully filled out the FAFSE form knowing we made too much money for a state grant, but figured we could qualify for loans. We did and took on the debt of student loans. We are still paying on these, but since the interest rate is low, we paid higher interest debt off first. The principal has been reduced considerably and will be paid off before we both retire.
Our daughter decided to go to grad school in Australia. She took on the full burden of her education, taking out student loans to cover the full costs. Today, she has $30,000+ to pay back which seems insurmountable to her. I wonder if she still feels the cost of a foreign graduate degree was worth it. She probably does as she is one who loves to do something different.
After several deferments because of unemployment, she was finally able to set up a payment schedule and begin her payments. Luckily she makes good money at her job and can afford the payments. Many graduates can’t, and I wonder how many parents end up helping the students pay off their debt. At times we’ve made payments to keep our daughter’s credit score from dropping because of late or missed payments.
I read an article that questions the heavy debt students take on just to attend a prestigious university just to graduate with a degree from that school. Is it worth it? Will the graduate impress the recruiter with a degree from a prestigious school? The author seemed to think that the debt load is not worth the cost of attending a prestigious school. That conclusion should dispell the notion that a degree from an expensive, prestigious school is something students have to have to be successful.
I would much rather have a child attend a less expensive school, get a degree and be free to investigate alternate employment opportunities without worrying about how to pay off a huge student debt. The same should be said to parents who think their children have to go to the best school to be successful and take on part or all of the burden of paying for that education.
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