When Kindergarten Schools Come With loan Desks

Student loans are more difficult to come by these days. And they are more expensive too. If you are nodding along in agreement that student loans for college or just extortionate, hold it right there. We aren't talking about student loans for college. We're talking about kindergarten schools here.

If you happen to live next to rich people or people who want to be rich, you've probably already seen this phenomenon. Ambitious parents put their children in private schools where the tuition per year can run to $6000 for kindergarten and twice that for middle school. When you step into such a school, right away, it will be like stepping into a car dealership. There's a student loan desk that they refer you to, they'll talk to you about your down payment, your monthly payments and everything.

Now this can't be a healthy trend, can it - kindergarten schools having loan desks? It may not be that big a trend now. But wait a while - it will become just that. There are a number of nonbanking lenders that specialize in this - companies with names like Your Tuition Solution. They report that business is great.

Understandably, it's high income families that even try to do something like this. You may wonder about why if they are high-income families, they would need to borrow to send their children to kindergarten. That's just the way it is these days. They probably have other expensive commitments to think about as well. There's only so much that a $200,000-a-year salary takes you these days.

The problem is that these loans can be expensive - an 8.5% fixed rate usually. It can take you two or three years to pay back the $20,000 you've borrowed if have a couple of children in school. Some schools helpfully of long-term loans. You don't have to pay your loans back until your kids graduate from high school. But that can't be a pretty sight - parents on the hook for tens of thousands of dollars in school loans and then college loans to think about as well.

You'd be surprised to know that private schools have grants and financial aid. They do - just like you would see in colleges. But even so, not that many qualify.

Whatever happens, private kindergarten schools and elementary schools everywhere do find takers. Parents of course, don't know how they are going to pay for all this. They just hope for the best and try to do the best they can for their children.