If you borrow and borrow and borrow some more to put your kids through college, conventional wisdom says you’re doing the smart thing–ensuring them a solid financial future. But many parents are too quick to take on massive amounts of debt and overlook more affordable college options.
Tim Grant of the Pittsburgh Post-Gazette warns parents to be cautious about how much they borrow for their kids’ education:
Parents should beware of borrowing too much to pay for children’s college education
Faced with rising college costs and a shortage of savings, many parents are making difficult decisions about whether to borrow money to help fill their children’s college funding gap at a time when they themselves are approaching retirement age.
Taking out loans may be inevitable in some cases, even if parents have been putting money away and their children have received grants and scholarships. But the decision to go into debt could have ripple effects on parents’ financial security.
“Before parents borrow for college, they should look at their own financial big picture,” said Stephen Talbott, author of the e-book, “How Much Should I Borrow for College?” “They need to ask themselves how far along they are saving for their own retirement, and are they putting in enough to be comfortable when they are 75 or 80 years old?”
Read more at College Insurrection.