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Retirement Suicide: Families Borrow to Pay for Kids’ College

Written by Gary North on October 16, 2012

This video interview posted by the Wall Street Journal talks about parents’ debt. We know about what students are personally taking on. The average debt is $40,000 at age 23, with no bankruptcy protection. But their parents are matching them.

None of this is necessary. College need not cost over $15,000, total. But parents are badgered by their kids to send them off to college. The parents’ peers are all dumber than dirt about alternatives. They are all buying prestige. “Jenny Sue got into a really good private school.” At $50,000 a year, it must be good, right?

Probably not.

Here is what these parents are doing to their retirement portfolios.

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11 thoughts on “Retirement Suicide: Families Borrow to Pay for Kids’ College

  1. Now a days, many kids will throw there parents under the bus as long as they get there way.

  2. any parent, unless very wealthy, that sacrifices their retirment for their kids education is not wise. Children, statistically, will live longer than their parents and will have the time to build their own retirment funds. Parents are most often too old to start an other retirment savings plan, and children are not likely to repay their parents. This can leave parents broke and at the mercy of others. I have four children and have made them work for their college education, helping only where truly needed. Now that they are grown and we still have money, we help then with financial gifts from time to time.

  3. Parents who coddle their kids throughout their growing up years may tend to continue the habit when they are young adults. They feel obligated to sacrifice their own futures for their kids. The results can be disastrous for the parents who are left with too little to live on! C'mon parents: buck up! Your kids are now adults and are responsible for their own lives!

  4. So, whats new.

    This is how the American society works, you pay thru the nose for everything, healthcare, medication, healthcare?????? insurance, higher education…………………….and still you pay some taxes………………………..so where does all the money disappear to…………………….well, most of it goes on defense, something like half of it anyway………………..and under Romney things are sure to get much much worse…………………………..dont worry folks its soon Xmas

  5. "…'The rich ruleth over the poor, and the borrower is servant [slave, NASB] to the lender.' (Proverbs 22:7)

    "In cowboy terms: 'Debt doubles the weight on your horse and puts another in control of the reins.' All debt enslaves, but when usury is involved, the weight of slavery is compounded many times over:

    ' …Woe to him that increaseth that which is not his! How long? And to him that ladeth himself with thick clay! Shall they not rise up suddenly that shall bite thee, and awake that shall vex thee, and thou shalt be for booties [plunder, NASV] unto them?' (Habakkuk 2:6-7)

    "The ancient Babylonians used thick clay tablets to engrave their usurious loan contracts. Borrowers were literally laden with weight. Today, the weight is worse because most people are so laden with usury their entire lives that upon their deaths many pass on outstanding debts to their children and grandchildren…."

    For more, see "The Eighth Commandment" at http://www.missiontoisrael.org/8thcom-pt1.php.

  6. We had three sons, two years and two months from the oldest to the youngest, very close in age. We couldn't afford to send them off to college, but knew they were college material, but we didn't want them or us getting into debt because of college. So in order to stay out of debt, they all went to community colleges, then on to local universities. They worked while they were in college, and had to help pay for some of the college expenses that my husband and I couldn't afford. We all drove old cars, didn't eat out, didn't have too many luxuries, everyone had to make sacrifices. They graduated from college with no debt. All three of the boys went on to get their Professional Engineering license. My husband also went to college during this time and graduated with the youngest son from college. A college degree can be attained without debt for your children if you aren't wealthy and have a very modest income.

  7. You are wise and did things the right way! We need more folks like you who use common sense. Unfortunately common sense is not something that Americans have been displaying in recent years.

    It used to be that we worked hard, worked smartly, and saved money. Now we, as a nation, spend money like druken sailors with no regard for the consequences after we sober up.

    Hopefully we can all regain some semblance of common sense before it's too late.

  8. Spoken like a convicted liberal supporter…………..standing there with their hand out

  9. Funny, how you libs skew and distort facts to fit your warped stories. Honey, it can't get any worse under Obama. Did you get your free phone yet ?

  10. Do it like Michelle and Barack have nary a worry ..

  11. Putting aside the retirement and economic part of this for a moment, how about not sending the daughter to today's colleges in the first place ?

    The 50,000.00 paid for "Jenny Sue" to not only continue her ongoing indoctrination (started in the public fool system, where, besides numerous lies and falsehoods, the girls are taught to be whores and the boys to be sodomites) of learning to be feminist and "carrier" woman, while putting out of her mind completely the idea of being a Godly woman (Ephesians 5: 22 – 24; 1 Peter 3: 1 – 6; 1 Timothy 5: 14 – 15. etc.).

    On top of that, now she can be surrounded by and learn all the various forms of decadence and depravity that today's colleges have to offer, not to mention the "truth", "wisdom", "knowledge" and "understanding" provided therefrom.

    Hosea 4: 6 " Because … I also will forget your children." Read all of chapter 4. It pretty much describes America today.

    Turn back to Him, while He may yet be found.