Helping Your Child Decide: Student Loans and Alternatives

A parent posted on Reddit asking whether their child should take student loans for a dream school, and the article notes average student loan debt of about $42,673.

A parent posted on Reddit's StudentLoans forum asking whether their child should borrow to attend a dream school. The question reflects broader concerns about the financial and emotional effects of student debt. The article reports average student loan debt near $42,673 and cites surveys showing many borrowers experience anxiety. It outlines common options families discuss when weighing higher education choices. Key points: - A family member asked on Reddit whether their child should take student loans to attend a preferred college. - Average student loan debt is reported at about $42,673, and surveys link loans to elevated anxiety among many borrowers. - Financial planners quoted a simple guideline that total student debt ideally should not exceed a graduate's first-year salary. - The article notes federal loans offer fixed rates and income-driven repayment options, while private loans often require cosigners and can pose higher risk for parents. - Starting at a community college and then transferring is mentioned as a cost-saving path that can lead to the same degree at lower overall expense. - Taking a gap year is presented as an option; programs like AmeriCorps were cited as providing a living stipend and education awards for future study. Summary: Families face a tradeoff between pursuing a preferred college and the prospect of long-term loan payments and stress. Reported options include federal loans with repayment programs, appeals to financial aid offices, starting at community college, or taking a gap year with programs such as AmeriCorps. Undetermined at this time.