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Some parents working past retirement to help pay off children's student loans

Student loans falling on parents
Posted: 7:02 AM, Aug 03, 2018
Updated: 2018-08-03 15:42:59Z

With America’s student loan crisis reaching $1.5 trillion, it’s not just college graduates who are paying off the loans. Parents are now getting sucked in to pay.

One man says he has a warning for other parents, before they try to help their children.

Victor Turner, who is a veteran, took out Parent PLUS loans in order to send his daughter to college.  

"Out of all the loans, I think the highest one is about $130 a month, but there are 7 of them."  

Now, back in school himself and caring for his new son, Turner is not the only parent risking their financial future for their child’s future.  

In 2016, an average parent owed about $32,000 on loans to help pay for their child's education.  

 

According to savingforcollege.com, that's nearly $3,000 more than what the average student owed.  

Although students take out more loans to pay for education, Mark Kantowitz, with savingforcollege.com, says parents take out more money. 

"Parent loans are effectively unlimited,” says Kantowitz. “They can borrow up to the full cost of education, minus other air."

While students have a cap on how much money they can borrow, parents don't.  

"If you need to borrow a private loan or a parent loan, think twice, because it's a sign you could be borrowing too much money,” says Kantowitz.  

Turner says the biggest learning wasn't taking out a loan, it was taking out the wrong loan. 

His mistake has not only cost him financially, but he'll also have to work into his retirement.  

"I'm thinking another 10 to 15 years of work."