Why are you borrowing student loans to get your child a college degree?


Did you know…

CNNMoney reported that “about four in ten people who’ve gone to college have taken out loans to pay for school.”  [http://money.cnn.com/2018/06/05/pf/college/student-loan-stats/index.html] The Federal Reserve latest report said that over 1.52 million dollars of student loans were borrowed in 2018, compared to 1.49 million dollars in 2017.  It’s July 2018; so we’re only halfway into 2018!

Burdened by Student Loan Debt

In a Chicago Sun Times article, people spoke out on how their student loan debt.  Watch the video!  [https://chicago.suntimes.com/feature/a-generation-of-college-students-buried-in-debt/]  One person called his situation, “the stink of debt.”  You could be one of them.  Really!

Too many of us desperately want a college degree because it might improve our situation.  We know about student loan debt, but we close our ears and eyes to the statistics and the experiences of others.  We borrow as much as we can thinking we’ll pay it off when we get a job.  But…what if we can’t find a job after graduation?  Maybe the job pays only enough to pay living expenses and there’s nothing left to pay student loan debt.

Parents Burdened by Student Loan Debt

“Student loan debt…crushing the financial futures of the parents who cosigned for their kids.” [https://moneyish.com/heart/parents-tell-moneyish-how-their-kids-student-loan-debt-is-destroying-their-finances-too/]  One mother said, “it’s emotionally draining.”  Parents who co-sign on a private student loan with their child are a co-borrower.  The parent is also responsible for repaying the loan should the child become unable to repay it.

Optimized-USNewsCrushingRealtyofParentPLUSLoansimageFor some parents, the Parent PLUS loan is in addition to their own student loan debt.  Parents borrow the PLUS one year at a time and haven’t planned for borrowing for the four or more years that their child will be in college.  If a parent borrowed $20,000 for the first year multiplied by the four years the child takes to get a degree totals $80,000. [https://money.usnews.com/money/personal-finance/family-finance/articles/2018-02-12/the-problem-with-plus-how-parents-buckle-under-the-weight-of-college-debt]

A Debt-Free Life = A Better Life

In the Chicago Sun Times article, Judith Ruiz said, “If I didn’t have student loans, I could be doing so much more with my life.” In the Moneyish article, mother, Susan Zambo said, “I feel like there is a rock around my neck.”

You can have a college degree without student loan debt.  You deserve it!  Why can’t you have a degree, a great job and be able to buy a house, a new car, start a family, or go on a luxury cruise.  There is a way to avoid student loan debt and get a college degree.

Share my blog with your friends and family.

Gail Sasao

eMail:  gail@MyMoneyPlan4College.com

Web:  MyMoneyPlan4College.com

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