College Costs - Debt staying steady, Parents picking up the rest of tab

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Grt2bOutdoors
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College Costs - Debt staying steady, Parents picking up the rest of tab

Post by Grt2bOutdoors » Thu Jul 12, 2018 7:49 am

https://www.nytimes.com/2018/07/11/your ... ctionfront

The latest out on the cost of college - costs have still not reached a steady state. Debt seems to be staying steady, whilst parent's are picking up the rest of the tab.
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MnD
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Re: College Costs - Debt staying steady, Parents picking up the rest of tab

Post by MnD » Thu Jul 12, 2018 8:02 am

Yes I've always noted the 5-6K annual limit and 30K or thereabouts cap doesn't constitute a crisis of debt for undergrads even if they max out on federal loans. In contrast ParentPlus loans are a high interest retirement-wrecking time bomb for parents, and a family-relation destroyer if parents take them out with the expectation that the kids are going to pay them back. Back to kids debt, the federal student loan limits go out the window for grad school and I've noted some people take them out for very dubious-worth majors for full expenses including living expenses. That's usually not going to end well.

smitcat
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Re: College Costs - Debt staying steady, Parents picking up the rest of tab

Post by smitcat » Thu Jul 12, 2018 8:26 am

MnD wrote:
Thu Jul 12, 2018 8:02 am
Yes I've always noted the 5-6K annual limit and 30K or thereabouts cap doesn't constitute a crisis of debt for undergrads even if they max out on federal loans. In contrast ParentPlus loans are a high interest retirement-wrecking time bomb for parents, and a family-relation destroyer if parents take them out with the expectation that the kids are going to pay them back. Back to kids debt, the federal student loan limits go out the window for grad school and I've noted some people take them out for very dubious-worth majors for full expenses including living expenses. That's usually not going to end well.
Your post almost exactly describes the situation with my daughters friends. Many large loans, many grad loans, many very high % interest loans, some affecting parents and grandparents now, many with 'good' jobs are still stifled by these loans, etc.

PVW
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Re: College Costs - Debt staying steady, Parents picking up the rest of tab

Post by PVW » Thu Jul 12, 2018 8:30 am

I wonder if the change in the trend of student debt is due to the crackdown on for-profit colleges.

The data on average student and parental debt load doesn't really tell us much about the changing financial burden of educational loans. More meaningful data would be the median debt of students that take out educational loans.

Here is the source of the NY Times data
https://www.savingforcollege.com/articl ... oan-limits

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willthrill81
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Re: College Costs - Debt staying steady, Parents picking up the rest of tab

Post by willthrill81 » Thu Jul 12, 2018 7:21 pm

In-state tuition for the regional university I work for in Washington state has decreased by more than 10% from its record high in 2014.
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