College Is a Debtor's Prison for the American Family
NEW YORK (BankingMyWay) -- The U.S. higher education system is a pretty good business, as college costs are rising way ahead of the rate of inflation, and ahead of the ability of U.S. families to pay for a college education.
That leaves parents with a potentially brutal decision to make. Should they bite the bullet and take out loans to pay for the skyrocketing cost of college? Or should they send their kids to more an inexpensive alternative, at least in the short term, like a community college or trade school?
Here is how college education costs match up against the rate of inflation since 1986, according to the financial web site InflationData.com :
Amid this economic catch-22, more and more parents say they can't afford the cost of sending their kids' to college. However, they still plan to do exactly that.
In fact, 75% of U.S. parents want to aid their children with college, but are worried they can't come up with the money, according to a study from Discover Financial Services.
Some other key pieces of data from the study:
Additionally, the Discover survey says that over 55% of parents will help their kids pay off college loans, and that could mean dipping into home equity or retirement savings to get those loans put to bed.
That's a great deal for colleges and universities, but a lousy one for U.S. families.
Unfortunately, like most trends during the economic downturn that have worked against the U.S. middle class, there doesn't seem to be much parents can do about it other than to search out the lowest-cost college alternatives.
More on college costs:
Student loan debt bomb imperils U.S. economy
Student loan default: avoid at all costs
One good idea may pay off your student loans