Bailout May Have to Come from Parents…
While the government won’t bail students out of their loans, parents are the next option. With the job market in decline and salaries not keeping pace with loan debt, more and more students fall behind in payments. As a result, rates for deferments and forbearance have increased according to financial aid administrators.
The following story is one that we are hearing more and more,
“A Florida mother says that after her 23-year-old daughter took on $23,000 in loans to help finance a $160,000 undergraduate degree, the best job she could get last year paid less than $40,000, failing to cover rent, expenses and loan payments. In hopes of helping her gain entry to a higher-paying career, her parents picked up her loan payments, paid off $2,500 in credit-card debt and persuaded her to move back home, where she’s preparing to apply for law school.
Now that’s a bailout. Of course many parents, are happy to help out (if they can), but other kids aren’t so lucky. Of course, what your financial situation calls for changes your college plans. But stay clear of credit card debt as much as you can as 100 dollars on a card can lead thousands of dollars of debt down the road if not paid off. Remember, you don’t need the latest fad right away.
Comments
Leave a Reply
You must be logged in to post a comment.