<p>“Now just have to pay for Housing.” </p>
<p>I thought that was for the boys since it came right after a sentence directly pertaining to them. If that is YOUR housing that you have to pay for, and you are taking out loans at nearly 8% to pay for college for your kids, ummm, I am not being an alarmist or even conservative with the remarks I made. But concerned. Very concerned. I’ve been in this “kids to college” mode for a very long time as I have older kids, and the families who have gone through all of this and gone down some of these paths 15 years ago are having a very difficult time. I’d like others to be well aware of the pitfalls which more folks fell into, than not, as they are faced with the same choices today when the college costs are higher and things are not a whole lot better in the job world. Absolutely no snark intended, just true concern for any of you (and my post was not just directed to any one poster here on the thread, though, yes, you were included) getting set to run through this financial gauntlet. </p>
<p>I’m sympathetic to the OP too. Taking out loans when one’s financial situation is already not stable with bankruptcy in the picture not so long ago, is not a good financial move. Especially at these non bargain rates.</p>
<p>Most high school graduates in this country do have access to a college education at local public schools. Those most needy can get grant money through PELL. Those who have need, can get subsidized student loans through Staffords. Those without demonstrated need can get unsubsidized Staffords. The categories can all overlap. Those are the only guarantees from the Feds. A parent can APPLY for PLUS, but, can be denied if there are outstanding debts on his/her credit record. If a parent is declined by PLUS, the student can get up to $4K (a bit more as an upper classman) more in Stafford loans. </p>
<p>The loans can be a big problem for student and parent alike as they are NOT dischargeable upon bankruptcy and the interest on them really is pretty danged high, especially considering the current prime rate. Try getting that kind of rate anywhere in interest. A lot of kids and parents are drowning in student loans, and those who already know first hand what happens in these situations from what has happened in the housing market do not need to get burned again. The rates for student loans are double most of these mortgages and there is no house as some asset in the mix. You pay every frigging cent as there is no bankruptcy failsafe valve, short sale options, nothing. They’ll go after your social security check. </p>
<p>Also, be very aware that kids are not jumping into high paying jobs after college even many who are in fields that are supposed to be lucrative and have a lot of jobs open. Believe me when I say that as I know many unemployed, and even more underemployed young people some with degrees from ivy league and other selective schools Getting paid a good living wage is not an easy status for these kids to attain. And the those loans come due, and they got that Sally Mae monkey on their back. It doesn’t help when their credit reports show a huge loan to income ratio either. It actually hurts them in getting government and financial services jobs as credit checks are now routinely done for higher paying job opportunities and employers balk at hiring anyone with risk factors, and large financial need is a risk factor. </p>
<p>So no malice intended with my remarks. If you are on the brink of making these decisions on borrowing, I can tell you that if your family finances are amok, it’s not a good idea to take out loans for large amounts. I see the living proof years later. College is not the be all to end all for students when families are in crisis. There are many ways to get a college education and racking up a lot of debt is not the optimal way, unless there is a danged sure way to repay it. Very sadly, those PLUS parent loans really great cash flow management tools for the well to do, in my honest opinion.</p>