Student loan,Debt

More Parents Taking On Their Kids' College Debt

December 29, 2016
in Kids

A growing number of parents of children ages 17 and older say they’re repaying their children’s college debt, according to a new analysis by USC researchers. About 13% of parents around age 50 reported paying off their children’s student loans. They're also borrowing more. From the 1995-96 academic year to the 2015-16 academic year, borrowers for Parent Loans for Undergraduate Students went up 56%, according to the College Board, and the amount borrowed has leaped from $3.6 billion to $12 billion. “We worry about the potential consequences of taking on student loan debt at a time when these parents should be saving for retirement and paying down their own debt,” says study co-author Jennifer Ailshire, Ph.D., an assistant professor of gerontology at USC. “Some parents may choose to delay retirement as a result of needing to save more or pay down more debt.” The parents taking on the most student loan repayments tend to be parents who are black, who have two children 17 or older with college-related debt, are college graduates themselves and are either upper-middle or high income earners. (Photo credit: Nazareth College) On average, parents are paying back about $21,000 in college-related debt, although high-income parents are taking on about $30,000 for their children. “While it is admirable...

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