Student loans suck. Collectively, we’ve got the equivalent of a Malibu mansion in student loan debt, so as a whole new generation is starting college this topic hits close to home. Even if you’ve been really good about saving money for college for your little ones since they were born, the soaring cost of tuition might leave you coming up short by the time they are ready to leave the nest. MarketWatch reports, “In the past decade, in-state tuition for public four-year schools rose 4.2% per year, much higher than inflation, and experts say the trend will likely continue.”
Knowing that you might not be able to afford it, the question begs: should you take out a loan for your kid? While we all want the best for our kids in terms of their education, the answer is, probably not. Taking out a loan on behalf of your child could backfire big time and turn into a student loan problem for you. So here are 10 reasons why parents should reconsider.
1. Taking out a student loan in your own name is a bad idea.
A key student loan problem is that the interest rates are high if you take out your own loan and you, as the parent, are 100% responsible for paying it back. So, while it might avoid putting debt onto your kid, you’re not setting yourself up for anything good.
Read Related: How to Limit Your Children’s College Debt