{"id":27921,"date":"2021-12-17T02:32:00","date_gmt":"2021-12-17T02:32:00","guid":{"rendered":"https:\/\/www.lifeandnews.com\/articles\/?p=27921"},"modified":"2021-12-20T08:19:37","modified_gmt":"2021-12-20T08:19:37","slug":"taking-out-a-student-loan-for-your-child-can-hurt-your-own-financial-well-being","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/taking-out-a-student-loan-for-your-child-can-hurt-your-own-financial-well-being\/","title":{"rendered":"Taking out a student loan for your child can hurt your own financial well-being"},"content":{"rendered":"\n

Thomas Korankye<\/a>, University of Arizona<\/a><\/em><\/p>\n\n\n\n

When people take out student loans for themselves, certain risks are involved. The debt can negatively affect<\/a> a person\u2019s mental<\/a>, emotional<\/a> and even physical well-being<\/a>. It can also harm a person\u2019s financial well-being<\/a>.<\/p>\n\n\n\n

But when taking out a student loan for one\u2019s child, the risk is even higher that the loan could be associated with lower financial well-being.<\/p>\n\n\n\n

This is what economics scholar Charlene Kalenkoski<\/a> and I<\/a> found published in the Journal of Personal Finance<\/a>. The study \u2013 which used a nationally representative federal dataset on household economics and decision-making<\/a> \u2013 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<\/a> for their children.<\/p>\n\n\n\n

By lower financial well-being<\/a>, we mean that these parents were more likely to report feeling as if they will never be able to have the things they want in life or that they are \u201cjust getting by financially.\u201d They also report feeling a lack of control over their financial situation. These statements are part of what the U.S. Consumer Financial Protection Bureau<\/a> uses to measure financial well-being. Lower financial well-being decreases overall well-being<\/a>.<\/p>\n\n\n\n

Our findings remained consistent even after we took into account several other factors, such as the education levels of the parents, whether or not they work, how much they earn per year and how they spend their money. We also considered their financial literacy and their current financial strain.<\/p>\n\n\n\n

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