<p>Think of the poor student whose parents say he/she has to attend a mediocre state school instead of a top 30 private school. What a shame. An $80k parent loan at 3% interest amortized over 30 years would only be a $340 monthly payment.</p>
<p>It bothers me when families sell their kids short. It seems that many families are “penny wise but pound foolish”. Isn’t your child’s future the most important priority?</p>
<p>It is especially disturbing when the parents buy a beautiful house, car, boat, vacations, etc. but scrimp on their child’s future.</p>
<p>It seems that the values are upside down and parents are short-sighted.</p>
<p>So, why are parents so reluctant to take out loans? </p>
<p>I know that some families can’t afford even a $300 or $400 monthly payment because of unemployment, divorce, and so on. Sometimes it simply isn’t possible despite doing everything right. I’m talking about families that could take loans but don’t.</p>
<p>first off, many families have more than ONE child, so they’d have to do this for EACH child.</p>
<p>Secondly, who the heck would want to take out a 30 YEAR loan for a student loan? The parents would be paying those back after they retired! </p>
<p>And, anyone who can get into a top 30 school, can likely get into a good (not mediocre) state school or private with merit at a much lower cost.</p>
<p>FEW professions require a degree from a top school…VERY few. Like maybe 2.</p>
<p>For a child to expect their parents to take out these loans…shame on THEM.</p>
<p>Given my age and income, there is no way I’d take out a college loan to pay back over thirty years. I would be paying it in my eighties and could not afford it.</p>
<p>College should be paid by past income (savings), current income and future income (loans). I’d prefer my kids not have any loans, but if they are not terribly high, that’s ok. In fact, a small college loan will help them establish their credit. Moreover, the student should make his or her own spending money.</p>
<p>Aw…poor student. Has to attend a public university. Sorry, but families have financial limitations in some cases, and this is well within their right. Some parents do not want to assume unnecessary debt…and it is a CHOICE to attend a college that will entail unnecessary debt to many. Also, assuming the parents want to take out this loan is really presumptuous. </p>
<p>If you REALLY think those loans make the school worth it, I would urge you to get a job, and support yourself until age 24. Save as much money as you can. Then apply for those loans in YOUR name…if you have the ability to do so. Then YOU would hold the repayment obligation.</p>
<p>The parents who “need” to take a loan that big to afford college for the kid(s) probably cannot afford 30 years of $340 monthly payments. After all, they need to provide for their own retirement, unless they expect their kid(s) to support them, which is a risky assumption for both the parents and the kid(s), since the kid(s) themselves might not end up earning enough money to support the parents even if they were fully willing to do so.</p>
<p>Granted, there may be exceptions, such as where the parents can theoretically afford college, but use a loan to bridge temporary illiquidity (e.g. much of their assets are in a business or real estate that they do not want to sell now but are planning to later), but these are not the normal cases.</p>
<p>And, that “only” $340 is a car loan payment, probably more than many car loan payments. $80,000 is way too much for one student to borrow. While a small loan can help build a student’s credit, $80,000 is way bigger than a small loan.</p>
<p>I’m reluctant to take out loans for anything because I don’t have, nor want, any debt, ever. I have never had credit card / consumer debt, pay cash for cars, and the only debt I ever had was my mortgage which I paid off. You’re rather arrogant to suggest “only $340/month for 30 years.” </p>
<p>You’re also plenty mistaken - every state flagship in the US is perfectly fine and graduates plenty of successful people.</p>
<p>OP will argue that attending an honors college is like buying the best house in a bad neighborhood ( isnt that how gentrification starts?- or more likely buying the worst house in a moderate neighborhood & making it more liveable)
But someone who thinks US News ranking is all you need to know when considering schools, isn’t likely someone I am going to take seriously.
But with age comes wisdom.
;)</p>
<p>In addition to increasing the cost of that college education from $80K to $120K that I am going to be paying off into my late 70s? There are so many words in your question that are red flags and point to a very entitled attitude…“poor student” (hear my tiny violins playing right now), “mediocre state school” (so? if you can do better, get out there and earn it, and as was pointed out, most state schools provide plenty of opportunity), “top 30 private school”, “only $340 a month” (only! depending on your tax situation, this can represent $500 or more in take home pay), “especially disturbing” (whose money is it, anyway?). I could go on, but I have to imagine this question is some sort of attempt to get lots of responses from outraged parents.</p>
<p>Why would anyone NOT be reluctant to take out loans?</p>
<p>If you were disposed to shell out $340 a month for 30 years, why not instead invest $340 a month when your kid is born, at a fairly conservative 5%, and wind up with nearly $120K by the time s/he’s 18? </p>
<p>Many families just don’t have the extra disposable income. If they haven’t been able to save during their child-rearing years, late middle age is a bad time to start taking out $80K, 30 year loans per kid.</p>
<p>Hard to believe this isn’t a ■■■■■! Figure out the interest that you would pay on an $80,000 loan over 30 years- how could you possibly justify that? Most of us are not only helping our kids thru college but simultaneously saving for retirement. It would be ridiculous to put ourselves in the position of having to rely on our children for financial support in our later years because we foolishly borrowed to put them through college. No college degree is worth borrowing so much money for, and you would be hard pressed to find any financial advisor who would recommend such a loan. I’m hoping you are a clueless kid and not a parent!</p>
<p>Even if my parents could afford it, I would NEVER want them to take out debt on my behalf. They have sacrificed plenty for me over the last 18 years (as a starting freshman)… they don’t need to continue to do it for the next 10+. Nope! I’d rather they enjoy their money. </p>
<p>Now that is MUCH different than not helping pay for education if they can afford it. I absolutely think parents should pay for at least a state education if they can afford it (over buying boats, cars, etc). That is MUCH different from going into debt though. </p>
<p>But then again, I am very proud of my “state school” education so what do I know.</p>