"…a new survey from COUNTRY Financial® shows that most Americans, while not breaking any laws, are willing to go to financial extremes when it comes to their child’s college education.
The survey found that 56 percent of Americans would voluntarily go into debt to pay for their child’s college education, with the average person willing to take on $31K in debt. Interestingly, the survey also found that men are willing to take on a higher debt amount than women to pay for their child’s education ($35K vs. $27K).
The majority of Americans (75 percent) believe it’s important to have a college degree when looking for a job, and 65 percent believe a college degree is worth the investment." …
https://finance.yahoo.com/news/paying-price-parenting-more-half-140100520.html
Now that the economy is better, they expect to be able to pay off the loans. That was’t the case 3 years ago.
Kind of hyperbolically written: “while not breaking any laws”, “financial extremes”.
Many people go into at least that much debt for a new car.
I could have told them that without needing any sort of study. In my area, few can save for college while also trying to save for retirement. College (or trade schools) are opportunities for their kids. They’ll do what’s needed if they can. Don’t know that they’d do 100K in debt, but 31K, definitely.
I’d take on some debt, but only if we really had to. If we could avoid debt we would.
I don’t think too many people voluntarily take on college debt. Those who are doing so probably have few other viable resources.
We were “willing” to go into debt. But by planning and saving since the kids were born, by the time the kids reached age 16 we’d put together almost enough to cover college costs at private colleges; the remainder came out of our earnings over the 7 years that one or the other was in college as well as contributions by the kids’ grandparents (my parents). We followed the model set by my parents; when I was about to set off for college my dad told me “We can’t promise you an inheritance. But we CAN provide you with a good college education.”
I know some around us choose debt over home equity or dipping into retirement. Technically they could pay and skip debt, but it’s by taking from the other accounts and often isn’t as wise of an option when all math is calculated.
Then there are others, I’m sure. I forgot the exact number, but many folks can’t even afford a $2000 emergency, much less X in college costs.
$30k in debt (or even somewhat more) makes a lot of sense if you look at the potential lifetime increased earnings a college degree can bring. Not so though if you drop out or come out of college with no more marketable skills than when you entered as a freshman.
$31k sounds very reasonable to me.
I’d say if you can get through college debt free, that’s great. If you have to take out loans to even go to college at all, then that’s ok. But, I’d say it’s good to avoid debt if you can.