Kindergarten loans are a sad reality of our time

Following Tuesday’s news that wealthy parents are being targeted for more money from their kids’ expensive private schools comes a very different, but equally terrifying, tale: Some parents are taking out loans to pay for their children’s educations, the Atlantic Wire reports. That’s been happening for years, you say? Well, yes. Except now the loans are being taken out for high school educations—and even kindergarten. There are even lenders who specialize in “pre-college education loans.” Smart Money’s Annamaria Andriotis writes, “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.”

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