Parents Snared in $100 Billion College Debt Trap Risk Retirement
By Janet LorinTerry Williams borrowed about $7,000 to earn a degree from Spelman College 38 years ago. For her youngest child, a sophomoreat Belmont University in Nashville, she will take on almost $40,000 in parental loans.
Williams, a 59-year-old widow who runs a nonprofit that helps black families navigate private-school admissions, is watching her retirement savings dwindle as she pays college bills for her three children, Bloomberg Businessweek reports in its Feb. 6 issue.
“I’ll probably work until I fall dead at my keyboard,”the Decatur, Georgia, resident said in an interview.
It’s not just graduates who are staggering under the weight of educational loans. Parents, too, are borrowing record amounts to put their kids through college, jeopardizing their retirements. With the housing crisis, many families can no longer avail themselves of one popular option for financing university studies: taking out a second mortgage.
Comment: Each bubble is also rip-off. Price doesn't equal value. This also holds for education.