The Parent PLUS Loan Shell Game

bluebayou
Fri, 28 Jan 2011 11:30:04 +0000

When is borrowing considered irresponsible? Is it wiser to borrow a larger amount of money in order to be able to have the career you feel called to, or to not attend college and stay out of debt? Is it foolish to go to the more expensive school when that school gives you the best chance of success?



You have framed the questions incorrectly, IMO.

Taking out massive loans to pursue a career for which you are ‘called’ when the career has little chance of a job makes is irresponsible, IMO. For example, borrowing hundreds of thousands to attend a fine arts college…

There is absolutely no supporting data that attending an expensive college gives you “the best chance of success.” None.

(IMO, you are not paying for ‘success’ but for a guaranteed admission to a 5th year. While perhaps worth something, is the guarantee really worth $100k? What if your D went the public route? Even if not accepted into Year 5, she could get a job and reapply, and still be a whole LOT financially better off.)