A college education is something that many people in Marietta want but very few can afford to pay for tuition and other costs out of their own pockets. Therefore, many families end up taking out student loans in order to afford to send their children to college. When parents, and even grandparents, co-sign for such loans, they often do not realize that they are taking on a financial burden that will follow them as they get older.
Borrowers over the age of 60 are the segment that is growing most rapidly, reports the National Association of Student Financial Aid Administrators. A recent report discovered that over a ten-year period, the number of loans for people in that age bracket grew roughly fourfold. In addition, the amount of debt held by those borrowers is also on the rise.
There are many different types of student loans available to families. Some of them, such as the federal Parents PLUS loan, are signed for by the parents only and therefore, it is they who bear the financial burden of paying them back. In fact, according to Forbes, as many as one of every six graduates has a Parents PLUS loan. Unfortunately, this can sometimes create tension and strife between parents and their children.
When parents are unable to make the payments, their children may feel guilty and try to find a way to make the payments themselves. Parents PLUS loans can also be refinanced with private lenders and transferred into the student’s name. As recent graduates just entering the workforce, however, these young adults may not be any better off than their parents who are nearing or at retirement age.