Student loans can start in kindergarten, reports SmartMoney.
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.
This doesn’t sound like a smart money decision to me.
Even senior citizens are burdened with student loans. Americans 60 and older owe $36 billion, according to research from the Federal Reserve Bank of New York. It is not uncommon for Social Security checks to be garnished or for debt collectors to harass borrowers in their 80s over student loans that are decades old,” say consumer advocates.