November 13, 2012
HIGHER EDUCATION BUBBLE UPDATE: Child’s Education, but Parents’ Crushing Loans. “There are record numbers of student borrowers in financial distress, according to federal data. But millions of parents who have taken out loans to pay for their children’s college education make up a less visible generation in debt. For the most part, these parents did well enough through midlife to take on sizable loans, but some have since fallen on tough times because of the recession, health problems, job loss or lives that took a sudden hard turn.”
Unsurprising, but any other industry that caused this much misery would be getting much worse press. The solution, of course, is to make bad loans dischargeable in bankruptcy after five or ten years, and put colleges and universities on the hook.
And note where the daughter says, “I don’t really feel guilt.”