Kindergarten Cop? No, Kindergarten Banker!
Parents taking out a crippling loan to ensure that their child has a good education is nothing new. However, they usually wait until the child is in a grade that doesn’t have a finger painting class before they start slowly going into debt.
It seems that some parents aren’t waiting until their kids pack up and moves off to college to take out a loan. More and more have started using students loans to pay for their child’s secondary and even primary education. The lender Your Tuition Solution reports that these loans have gone up by 10% in a single year.
The loans are being used to fund the tuition for fancy private schools. They also carry astronomical interest rates, some of which reach as high as 20%.
The most jarring part is that some of the loans don’t require payment until after the child graduates from college. That means that on top of having to pay for a student loan, the student will also have to pay for their elementary school, middle school and high school loans. Maybe this is just the financial markets’ way of reducing our obesity rate. By the time they are done paying back all of those loans, there is no way future generations will ever be able to afford food.