Study Shows Student Loans Impacting Parents

Many people are aware of the hardship that student loan debt can place on college students and graduates, but a new study is shining a spotlight on another burdened group — their parents.
 
Parents who are taking on their children’s college debt are repaying about $21,000 on average, according to a study by the University of Southern California and the University of South Carolina.
 
The report also cited data showing increases in parents’ borrowing and a growing national concern regarding debt held by middle-aged adults and seniors:
 
• In the past 10 years, the number of borrowers for Parent Loans for Undergraduate Students has increased 56 percent, and the amount borrowed more than tripled from $3.6 billion to $12 billion.
 
• Middle-aged adults and seniors hold about $400 billion in college debt. About $100 billion of that is from loans paying for their children’s tuition.
 
• More people age 50 and older are defaulting on student loan payments. Of the federal government’s $4.5 billion in defaulted student loan collections last year, around 10 percent were from seniors’ Social Security checks.
 
The researchers say the trend could cause trouble for families down the road. They said student debt could drain parents’ nest eggs and could also delay retirement.
 
Read the full report here.
 
At The Virtues Campus, we understand the impact that student loans can make on students and their families. That is why we work to provide a path to a debt-free degree through affordable tuition, part-time work, and guidance to stay on track.
 
Interested in learning more? Contact us today for more information about how The Virtues Campus can help you or your student graduate without the burden of student loans.