As tuition prices rise, so does the desire for parents to take on student loans for their children. It is understandable why a parent would want to put themselves into debt to help out their beloved children. However, student debt is at record high levels and recent reports of bad student loan practices against the loan provider Navient have left many people wondering if they should have ever taken out a loan at all. According to a recent survey by Student Loan Hero, 55% of parents have over $40,000 in student debt, often taken out of their retirement funds. This can have a lasting impact on some of these parents for the rest of their lives.
Should Your Child Pay for Their Own Education?
Although letting your child take on debt for college can seem intimidating, letting them pave their own way for schooling could be a great learning experience for them. It can be a great incentive for them to work harder and finish school, since they are having to pay for it and choose what to study on their own dollar. Keep in mind that your child will have their whole lives and careers to pay off tuition debt, but you most likely will not want to work to pay off debt in your retired years. There is no reason to force it if you do not have the money.
If Your Children Are Taking Out Loans, Educate Them on These Debt Practices:
- Hidden fees: Navient has been charged with hiding fees into their loans that were not specified in the contract. Loan providers are legally required to communicate any additional fees and changes in prices ahead of time. Let your child know they need to check their bills for changes.
- Misinformation: Bad information about payment due dates, changes in prices, and coaxing borrowers to take co-signers out of loans has been cited as well. They were charging borrowers thousands of dollars for bad information that they themselves provided.
If you are a parent with a large amount of student debt to pay off, there are still multiple options for you. Alternatives to bankruptcy like debt negotiation, debt settlement, and debt consolidation can help you pay off your loans. Contact a New Jersey debt settlement attorney for in-depth assistance with your student debt concerns.