Parents drowning in kids' college debt

(WXYZ) - The price tag of a college degree is going up. New numbers out today from the College Board show the cost of instate tuition at public universities went up 5% this fall.

And a newly released study shows a record number of households, one in five, now face college debt.

On top of that, more middle aged Americans than ever are struggling with college loans, though it may not stem from their own education.

The painful increase in college expenses is often felt the most by the parents supporting their students.

The amount borrowed for Parent Plus Loans, the loans offered through the federal government, has doubled in the last decade, with an average balance of $34,000.

And if students take out loans themselves, Mark Kantrowitz of www.finaid.org says more loans require cosigners. "Before the credit crisis about half of all student loans required cosigners.  In the aftermath of the credit crisis and today more than 90% of new private student loans require cosigners," says Kantrowitz.

Kantrowitz makes a point of telling parents and students to only borrow what they really need. There's a tendency to borrow to the loan limit and that is not always necessary.

Print this article Back to Top

Comments