Borrowing Parents Taking Out A Student Loan For Their Child Worry More About Finances
When people take out student loans for themselves, certain risks are involved. The debt can negatively affect a person’s mental, emotional and even physical well-being. It can also harm a person’s financial well-being.
But when taking out a student loan for one’s child, the risk is even higher that the loan could be associated with lower financial well-being.
This is what economics scholar Charlene Kalenkoski and I found published in the Journal of Personal Finance. The study – which used a nationally representative federal dataset on household economics and decision-making – involved nearly 12,500 American adults ages 18 and over, with an average age of 48. It is not known whether the parents had taken out private or government loans for their children.
By lower financial well-being, w...