Would you take out a loan for Kindergarten?

iVillage Member
Registered: 11-18-2008
Would you take out a loan for Kindergarten?
12
Mon, 04-02-2012 - 4:54pm

The thought had never crossed my mind until I read this. I just can't picture taking out a loan for schooling that early in life. Maybe my thoughts would be different if we didn't have so many options here in the area.

Would You Take Out a School Loan to Pay for Kindergarten? A Rising Number of Parents Say Yes
http://www.ivillage.com/parents-get-school-loans-pay-kindergarten/6-a-439710
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iVillage Member
Registered: 08-31-2009
Tue, 04-03-2012 - 11:08am

Maybe not for kindergarten (which is full-day and free in Maryland, unless you just 'have to go private').




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iVillage Member
Registered: 09-12-2003
Tue, 04-03-2012 - 12:19pm

OK as someone who sees the reality of student loan debt EVERYDAY with more and more of these accounts with loan balances HIGHER than my mortgage and that’s JUST their federal loans and maybe not even all of them. Depending on when they went to college they may have loans that were directly through department of ed and then there are the private loans. WORST thing you can EVER do is take out a private loan. There is very little help available if you get in trouble with a private loan and as far as I know federal loans are ONLY for college and grad school and such so any loan for kindy or elementary or high school are private and it’s pretty much just like a credit card and if you default on it they are RUTHLESS. Now with college private loans depending on who signs what they can go after the parents and the child. Yes federal loans have scary consequences but they also have programs to help you recover and will even delete a default from your credit if you can successfully rehab a defaulted loan. Also even for loans not in default they have forgiveness programs for teachers and public services and also low income where you pay based on your income for 20-25 years then remaining is forgiven. Also if you become disabled there are forgiveness programs and it’s my gut instinct with the student loan crisis there maybe more programs for federal borrowers. However, if you have private loans you get NOTHING and even bankruptcy since student loans are not dischargable you can’t get relief. Also if they parent and child signed them if one dies the other is still liable. Again it’s like a having a joint credit card. At all cost AVOID private loans for ANY education, IMO

Sorry this is what I do so it’s kind of a soap box issue for me, but considering the rising cost of education and the current economy what I tell friends with jr and sr in high school starting this college process. Don’t get hung up on names. In this economy a high priced education does not guarantee a better paying job unless your kid is going to graduating in the top of his class he or she is going to be competing for the same entry level jobs of those with state school educations and if you are counting on financial aid understand a LOT of that will be loans and you need to think beyond college. Would you rather your kid finish school with a hill of student loan debt or a mountain??? I thank my dad EVERYDAY, he did everything he could to avoid me needing to take out a loan. I don’t think I would have appreciated it as much if I didn’t end up in the student loan industry. It’s scary to see the debt kids are getting into these days and parents and to do it for elementary school and high school. What’s the point, yah your kid gets into a great college but that means more debt and then they finish school and well depending on the economy who knows what kind of job they will get or what they will make and if they want to go to law school or med school by the time they are done you could have racked up enough debt to feed a small country. No thanks.

I laugh I have heard comments for parents hoping to save enough to move to better school districts so their kids can get in top tier colleges and I’m like um hello if you can barely afford to move how do you expect to pay for this pricey education. I went to a “bargin” school (well was one in my day) and reality I make the same as my coworkers who went to the name brand schools but since they have all these loans I have more disposable income (well would if I didn’t have kids but if I had their debt I would have kids or a house). Bottom line whether its loans for kindy or college you have to think beyond present day and weight benefit vs the cost. I’m a firm believe the school you go to whether its college, high school or elementary school is only half the story. It’s what the student and the parent puts into it. I had friends from my public high school in a not so praised school district go on to Harvard and MIT and other great schools and do just as great as those private school kids.

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iVillage Member
Registered: 11-18-2008
Tue, 04-03-2012 - 12:37pm
momto2xys wrote:

Maybe not for kindergarten (which is full-day and free in Maryland, unless you just 'have to go private').

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iVillage Member
Registered: 11-18-2008
Tue, 04-03-2012 - 12:42pm
liamsmom724 wrote:
Bottom line whether its loans for kindy or college you have to think beyond present day and weight benefit vs the cost.


I have to agree there. And if I'm forking out lots of money for education, I'd rather it be on the college end than Kindy.

Good info Heidi. Thanks for sharing!

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iVillage Member
Registered: 08-31-2009
Tue, 04-03-2012 - 1:52pm

I'm really surprised that kindergarten is still half-day anywhere!




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Avatar for turtleemom
iVillage Member
Registered: 07-25-2007
Tue, 04-03-2012 - 1:54pm
This was 20 years ago, but my parents were not eligible for govt loans. Private loans were my only option. My parents paid the interest while I was in school and the principle was deferred unit graduation. The interest was less than a credit card and they were paid off in 6 years. If you plan ahead, and spend accordingly, I don't see how private loans are any worse than govt ones-especially for those 'make too much for govt help' families 'but not enough to boot the entire college bill'. If you are taking out a loan you should plan to pay it back and not look for relief or a way out.

Avatar for turtleemom
iVillage Member
Registered: 07-25-2007
Tue, 04-03-2012 - 2:02pm

No I would not take out a loan for kindy.

iVillage Member
Registered: 09-12-2003
Tue, 04-03-2012 - 2:29pm
With a private loan if the student dies the parent still has to pay with a federal even a parent loan is forgiven in the case of death. If the student becomes disabled and can't work with a federal loan it can be discharged not with a private. If u loss ur job with a federal loan u can postpone payment u can't always with a private or some will for a fee. Also on a private loan u can default after 1 missed payment with federal it's 9 months. Interest rate on a private loan will depend on ur credit. Federal it's a decided by congress and usually fixed.

Yes in a perfect world u pay back what u borrow but things happen in life. Kids die, people have breakdowns get sick have accidents I've heard it all some valid some not and why should a parent have to continue to pay for their dead kids school or if u can no longer work how are u supposed to pay? Now I do get not so food reasons too but for everyone 1 who just doesn't want to pay there is another who really can't or shouldn't.
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iVillage Member
Registered: 09-12-2003
Tue, 04-03-2012 - 3:01pm
As for qualifying for a federal loan. Income would only bar u from a subsidized loan. You could still get an unsubidized loan main difference is interest on a subsidized loan is paid by govt while in school or on a deferment while an unsub loan it accrues while in school. Now there are loan limits which vary per year of school. This was the same when I started college in the early 90s my parents made too much money for grants all I could get was unsub loans my dad didnt want that so we paid out of pocket. He did borrower against the house but he had plenty of equity. Most people take private to make up where federal ends. Again there are loan limits with both sub and unsub loans do even if u get grants and perkins and such it still may not cover the cost so private loans come in.
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iVillage Member
Registered: 07-25-2007
Tue, 04-03-2012 - 3:08pm
If parents took out the loan, they should have to pay a loan back in case of death beacause they spent it. The fact that the child did not get to utilize the education the loan paid for is not the lender's fault-- same with illness/disbailities.

Maybe our government wouldn't be in such financial problems if there were a bit stricter on loan repayment.

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