Whether you’re a student about to start college, or a parent looking to finance your child’s education, You may have to dig deep for tuition money from now on.
Not only is the housing market melt down sending us into a possible recession, our kids are paying the price as well. A recent article on CNN Money blamed the sub prime mortgage crisis on higher student loan rates.
From now on, it will be harder for students to get loans and the interest rates will be higher. Already, young adults in their 20’s who should be having the time of their lives are being socked with heavy debt from loans they naively signed up for.
The other night, I watched Suze Orman’s show which featured a young woman who makes seven dollars an hour as a pastry chef. And she can’t make her $700 a month student loan payment. I’m sure culinary school looked very exciting to her at the time. But what she wasn’t told when she signed the dotted line, was that the fancy school diploma wouldn’t lead to a fancy job when she graduated... And that the interest on the loan would be more than she could afford.
Are these lenders taking advantage of young consumers who don’t know any better? Or should parents bear the burden of setting their kids straight when it comes to handling debt? Or are colleges and trade schools just too off-the-chart expensive for today’s students? Any way you look at it, higher education may soon become an unattainable luxury for many.
