Pay for Their College and Lose Your House: Ameritech Financial Discusses Parents’ Dilemmas With Student Loans!
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SOURCE Ameritech Financial
ROHNERT PARK, Calif., Aug. 27, 2018 /PRNewswire/ — Years ago, sending children to college was a rite of passage for middle and upper-middle-class Americans. Today, it has become akin to a death knell because parents face an increased risk of foreclosure if they pay for their kids’ college. Ameritech Financial, a document preparation company that assists borrowers in applying for various federal student loan repayment programs, doesn’t want Americans to feel like they are out of options. In fact, student loan borrowers could greatly benefit from applying for income-driven repayment plans (IDRs) that may reduce their monthly student loan payments.
“Parents may be inclined to apply for parent PLUS loans because they think their kids aren’t ready to deal with the financial consequences of missing payments on loans, or worse,” noted Tom Knickerbocker, executive vice president of Ameritech Financial. “We advise parents to think carefully about their financial situation before they take out any loans for their student’s college education. It could benefit them to consult a financial expert beforehand.”
Part of the problem is that raising a child to the age of 18 costs, on average, $233,610. Add college to that amount and it is no wonder parents in the 21st century are especially feeling a financial strain, and may even lose their houses. For example, researchers discovered “a 1 percent increase in college attendance could be expected to lead to between 11,200 and 27,400 additional foreclosures.” Furthermore, the same study revealed middle-income and top-earning households were both affected by “elevated foreclosures” due to sending their kids off to college.
Another article with basically the same results:
https://thefederalistpapers.org/wp-content/uploads/2017/09/imageedit_4419_2977959953.jpg
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