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Student loans and college education seem to go hand-in-hand these days, but an increasing number of parents are seeking financial assistance to help pay for their child's education as early as kindergarten, according to Smart Money.
Lender Your Tuition Solution says that demand for private-school loans for children in kindergarten to grade 12 currently is up by 10 percent over last year, according to the report, and could total $20 million for the coming school year. What's more, 20 percent of families applying for assistance report annual incomes of $150,000 or more -- not so surprising when you consider that the average private school tuition is $22,000 per year.
Parents quoted in the piece say that they hope that investing in their child's education early on might open the door to better schools or even a scholarship down the road. But my guess is that there are other parents scrambling to pay for private school because they don't have an alternative. The public schools in our small midwestern city just don't cut it -- and so we're looking at private schools for our seven-year-old daughter. We're totally stressed out about how we'll pay for it, but her education is important enough to us that we may take out a loan to make it work.