Parents in America are taking out loans at interest rates of up to 20% in order to pay for their children's private K-12 education. The average loan from one provider, Your Tuition Solution, is $14,000, while the Lake Trust Credit Union lets you carry up to $40,000 in loans for your child's primary and secondary education. Some lenders allow parents to defer payment until their kids graduate college, which is when their college loans are also called in. Annamaria Andriotis writes in Smart Money:
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. Though data is scarce, private school experts and the small number of lenders who provide loans for kindergarten through 12th grade say pre-college loans are becoming more popular. Your Tuition Solution, one of the largest lenders in this space, says demand for the upcoming year is already up: This month, the total dollar amount of loans families requested rose 10% compared to a year ago; at that pace, the company expects its total funding to rise to $20 million for 2012-13. Separately, First Marblehead, which exited the market in 2008, reentered last year as demand for loans began to rise.
Much of this demand is coming from high-income families. 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, according to 2010-11 data, the latest from the National Association of Independent Schools. That's up from just 6% in 2002-03. Those who don't get approved for free aid, like grants, increasingly turn to loans, experts say.
Student Loans on Rise -- for Kindergarten (via MeFi)
(Image: Indentured Student - Cartoon, a Creative Commons Attribution (2.0) image from donkeyhotey's photostream)
Lax enforcement from the SEC has allowed the biggest companies in America — 90 percent of the companies in the S&P 500, led by the faltering energy sector — to ignore the “Generally Accepted Accounting Principles” (GAAP) in presenting their financial information to investors, manufacturing nonexistent profits in quarters where they suffer punishing losses.
I have a first-world problem: I stay in a lot of hotels.
Reuters reports that VW is about to tell the federal judge in San Francisco in charge of its case that it will offer to buy back nearly half a million of its diesel vehicles from owners who were deceived about the cars’ emission standards and performance when the company engineered its cars so that they […]
You never know when new projects, ideas or opportunities can drop into your lap at a moment’s notice. That may require you to learn a new programming language like Python. Or maybe you need a primer on 3D game development. Or you might realize you could use a serious brush-up on iOS mobile creation.Point is, […]
Isn’t it about time to stretch what your Mac can do? I mean, you’ve got plenty of great programs now…but don’t you think you could use some new tools to get your creative, analytical and organizational juices really flowing? It’s spring, so we cleaned up a whole bunch of super-cool apps lying around and packaged […]
In the world of app development, there’s no greater arena to find success than with Android users. About 80% of the smartphones in use today worldwide operate on the Android operating system, so if you build a great app that Android users love, you’re an international rock star. You’ll be able to make sure your […]