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Parents are taking out bigger loans to pay for their children's college education

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Replies to: Parents are taking out bigger loans to pay for their children's college education

  • mom2collegekidsmom2collegekids Forum Champion Financial Aid, Forum Champion Alabama Posts: 84,233 Forum Champion
    edited December 5
    Without exception, every case I know of is because they didn't want to tell their kids no.


    this this this ^^^

    We are a generation of parents filled with folks who rarely tell their kids “no.” I think it was @ucbalumnus who once wrote here on College Confidential that facing unaffordable college costs is often first time many parents are faced with having to tell their kids “no” to one of their desires. And too many find that to be too impossible, so they borrow.


    Hey UCB...what was your exact quote?
  • tsicklestsickles Registered User Posts: 12 New Member
    omg. That makes me ill just reading it. I can't even begin to imagine being in that much debt. How in the world do they think they can pay that off?
  • NEPatsGirlNEPatsGirl Registered User Posts: 2,704 Senior Member
    Ignorance is bliss.
  • ucbalumnusucbalumnus Registered User Posts: 72,246 Senior Member
    Re : #9 @HeartofDixie

    Most forum posters are high SES, so their observations skew toward people who could send their kids to less expensive college but choose to take parent loans to send their kids to more expensive college.

    However, the real world has many of the second group you describe, where family income is low enough that even commuting to a community college or regional state university may be a financial stretch (or not even possible in sparsely populated areas where the colleges are too far to commute). But it may also be the case that the parents' income is not high enough to qualify for "huge" parent loans, so the student in such a case may have few or no college choices at all, even with parent loans.
  • NJWrestlingmomNJWrestlingmom Registered User Posts: 758 Member
    @mom2collegekids funny, because U of Al is the top pick for my example! When we have TCNJ in state that is one of the top education schools in the country!
  • ucbalumnusucbalumnus Registered User Posts: 72,246 Senior Member
    Re: #16 @mom2collegekids

    There may have been more than one instance, but you got the general idea right. But it was mainly in the context of kids (in high SES families) with big dreams who have difficulty coming to terms for the first time in their lives that there are money limits, leading to conflict with their parents about college choice.

    In the case of parents who take out big loans, they are not really saying "no", but continuing to help their kids pretend that there are no money limits, postponing the kid's financial reckoning until college graduation.
  • mom2collegekidsmom2collegekids Forum Champion Financial Aid, Forum Champion Alabama Posts: 84,233 Forum Champion
    edited December 5
    ^^

    right. What I meant is that when faced with this issue, the “never have said no before parents” either have to take out loans so that they STILL don’t have to say no, or they have to say no for the first time because loans aren’t possible and the child is furious.

    From what Ive seen it’s not just high SES families. Many “just middle class” parents and even some “modest income parents” have a history of “never saying no.” There was a Dr. Phil episode, years ago, where very modest single income moms wouldn’t say no to their kids’ outrageous Xmas lists. It was crazy.
  • mom2collegekidsmom2collegekids Forum Champion Financial Aid, Forum Champion Alabama Posts: 84,233 Forum Champion
    because U of Al is the top pick for my example! When we have TCNJ in state that is one of the top education schools in the country!


    Are you saying that the coworker’s daughter wants to go OOS to Bama to be a preschool teacher? Oh my. She wants her parents to borrow or let her borrow for this? Does she realize how low preschool teachers are paid???
  • NJWrestlingmomNJWrestlingmom Registered User Posts: 758 Member
    @mom2collegekids yes, that's what I'm saying! And she wants to stay in the south to teach pre-school. I tried to gently suggest staying 4 more years to get her degree, then moving, but she's not interested. She would also qualify for 2 free years of community college up here.
  • HeartofDixieHeartofDixie Registered User Posts: 110 Junior Member
    edited December 5
    I am very familiar with that second group because that is where we are, except that I won't be taking out parent loans. I started researching and talking to him about college last year early in his junior year and let it be known that me taking out loans was not an option. I still owe students loans of my own, which are on an income based repayment plan, and our household income last year was under $20,000, how in the world would I make payments on those parent loans. Ds19 is one of the top students in his class, has lots of extracurriculars, but hasn't been able to top 1200 on the SAT or 24 on ACT(his ACT scores are among the highest in his class). We are trying different avenues but honestly his scores make his chances of admission to most of the meet full need schools unlikely and they aren't high enough to get huge merit money. I am really hoping that he gets into Berea, it has his desired major and should be affordable. He has been admitted to UNA, which is our closest university, and right now with what we know he would get could cover tuition and fees. He would have to commute an hour each way, but it is doable and we are hoping some of the other scholarships he is applying for come through.

    I have had to do all of the research on my own though and I imagine many in his situation who don't have someone to help them through it fare much worse.
  • mom2collegekidsmom2collegekids Forum Champion Financial Aid, Forum Champion Alabama Posts: 84,233 Forum Champion
    that's what I'm saying! And she wants to stay in the south to teach pre-school. I tried to gently suggest staying 4 more years to get her degree, then moving, but she's not interested. She would also qualify for 2 free years of community college up here.


    Well, if parents won’t pay or take out loans, then it won’t happen.

    I also suspect that she’ll want to rush/pledge, which can easily add another $5k+ per year

    If the parents plan on co-signing $150k+ of loans for her to go OOS, the parents better be prepared to pay back those loans because I can almost promise you that she won’t be able to pay.

    Do her parents realize that the loan payments would be about $1500 per month??

    I remember meeting an early childhood grad with $50k TOTAL of loans and she couldn’t pay any of it back. Between rent, utilities, car, insurance, gas, food, etc, she was living paycheck to paycheck. She had been contacted to set up IBR which would have given her a payment of about $125 per month, which she also could not afford.


  • twoinanddonetwoinanddone Registered User Posts: 19,584 Senior Member
    The people taking Plus loans are not always poor or uneducated. Martin O'Malley, governor of Maryland and who ran for president in 2016, had $450k in loans for just 2 of his 4 kids, and he was paying tuition for 2 kids still in grade school. His kids had lots of other choices, including U of Maryland. Mike Pence had over $300k in Plus loans for his kids when he became Vice President.

    It's worked out for them. They used lower interest government loans so they could use their salaries for something else, something other than saving for college.

    I think there need to be stronger standards, and limits, for Plus loans or they should just get rid of them. Some people will be able to qualify for private loans, and even more will just have to make other choices (CC, state schools, working before going to college).
  • mom2collegekidsmom2collegekids Forum Champion Financial Aid, Forum Champion Alabama Posts: 84,233 Forum Champion
    edited December 5
    Ds19 is one of the top students in his class, has lots of extracurriculars, but hasn't been able to top 1200 on the SAT or 24 on ACT(his ACT scores are among the highest in his class). We are trying different avenues but honestly his scores make his chances of admission to most of the meet full need schools unlikely and they aren't high enough to get huge merit money. I am really hoping that he gets into Berea, it has his desired major and should be affordable. He has been admitted to UNA, which is our closest university,


    Students like him may want to apply to some “test optional” schools that meet need....like Wake Forest and many others. Maybe someone can post which schools are TO and meet need.

    What is his major and career goal?

    That said, UNA is a very good and well-established school.
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