According to the WSJ article April 24, 2017; “The U.S. Makes It Easy for Parents to Get College Loans—Repaying Them Is another Story”
Millions of parents have taken out loans from the government to help their kids pay for college. The problem is now they aren’t paying them. Hundreds of thousands have tumbled into delinquency and default. In the process, many have delayed retirement, put off health expenses, and lost portions of Social Security checks and tax refunds to their lender, the federal government.
As of September 2015, more than 330,000 people, or 11% of parents, had gone at least a year without making a payment on a Parent Plus loan. That exceeds the default rate on U.S. mortgages at the peak of the housing crisis.
These are tragic stories that I hear over and over again. College is expensive and you must plan early for this expense. A public school, four year college, cost $100,000 today and is inflating at 5% each year.
College is expensive and the earlier parents plan for this expense, the more successful they will be. I teach alternative strategies to families on how to save and pay for college so parents don’t sacrifice their retirement. Don’t fall into this horrible trap and sacrifice your future for your kids. Plan today and I can help!