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March 30, 2012 10:00 AM Student Loans, on Steroids

By Daniel Luzer

The seriousness of student loans is a longstanding problem in higher education. Average student loan debt is now $25,250 and one in six families now have taken out loans to send their children to college. But now, apparently, student loans are not confined to college.

According to a piece by Annamaria Andriotis at Smart Money:

It used to be that families first signed up for education loans when their child enrolled in college, but a growing number of parents are seeking tuition assistance as soon as kindergarten. Though data is scarce, private school experts and the small number of lenders who provide loans for kindergarten through 12th grade say pre-college loans are becoming more popular. Your Tuition Solution, one of the largest lenders in this space, says demand for the upcoming year is already up: This month, the total dollar amount of loans families requested rose 10% compared to a year ago; at that pace, the company expects its total funding to rise to $20 million for 2012-13. Separately, First Marblehead, which exited the market in 2008, reentered last year as demand for loans began to rise.

No, no, no, no. This is not a good idea. Do not take out loans to send your child to kindergarten.

According to the article, the average cost of an American private school is now nearly $22,000 a year.

Ok, if you can’t afford to send your child to private school, send him to public school. That’s why we have them. They’re free. Totally free.

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer

Comments

  • Mikhail on March 30, 2012 4:45 PM:

    The problem is that at least in the cities, most public schools are also notoriously awful. I can't speak for the reality of it, but I know of quite a lot of parents who'd take out loans or send their children to a religious school just to avoid the public school administration.

  • Crissa on April 01, 2012 1:24 AM:

    There aren't any cases in which loans to pay for a child's education are going to pan out. The odds are just too long.

    There aren't any schools in which a kid can't get an education. Sure it may suck, but private school isn't going to change the community they live in, or what connections they have.