Affluent families borrow money for private schooling too…

More sign’s that Obamanomics just don’t work: affluent parents are resorting to borrowing money to keep their children out of government run schools too!  The underlying message here is about the dire state of education in this country.  Parent’s are willing to borrow money to get their kids out of failing public schools, protecting them from indoctrination and poor academic achievement.  Private schools provide better educational outcomes for children, and in many instances for less than the cost per pupil of public institutions…


via Zero Hedge:

 Smart Money reports on the growing use of student loans for the private K-12 education needs of affluent families. This is not affordable loans for impoverished savants to get their PhD at 14 years old, roughly 20% of families that applied for aid to pay for their children’s kindergarten through 12th grade private school education had incomes of $150,000 or more, up from just 6% in 2002-3. ‘Pre-college’ loans are becoming more popular as the story notes “It used to be that families first signed up for education loans when their child enrolled in college, but a growing number of parents are seeking tuition assistance as soon as kindergarten.” These loans, which do not have to be repaid until the child graduates college are expensive (varying between 4 and 20% and average $14,000) which would be on top of the nearly $34,000 average that 1 in 6 parents already carry for college graduates – leaves parents at risk of owing considerably larger sums of debt.  Still, perhaps the e*Trade baby will put that cash to good use but one parent sums up the alternate reality that exists within so many US households with regard to debt: “We’ll figure out how to pay for it then, or with any luck they’ll get scholarships,” he says. “Right or wrong, we’re hoping our experiment works.” Keep buying those Mega Millions tickets too…

Hoping for scholarships, while putting a child through public school is one thing, but borrowing money at high interest rates is quite another.  Parents seeking choice in education should never have to borrow the money to do so.  Once enough taxpayers realize this, a sea change is inevitable.



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