Many parents do this because they themselves are in over their heads on their own financial burdens and haven’t saved up enough to self finance their children’s education and feel compelled to help them become successful.
Isn’t that what all parents want to do ? Help their children have success. Parents take on a student loan for their children. And they are obligated to pay it.
But many children who go off to college and graudate and get a good job feel obligated to help their parents pay these federal student loans off.
And while they have no obligation to do so, many graduates feel a personal obligation to help their parents out.
Meet Alex Lykos
‘Alex Lykos doesn’t like to think about what his life would be like if he only had to deal with $27,000 in student loans.
The 23-year-old is making good money as a software engineer in Boston and, at least on paper, is faring better than the average college graduate who is $35,000 in the red.
Yet, Lykos has also assumed responsibility for another $92,000 in Parent PLUS loans that his mom and dad took out to pay for his college education. He has no legal responsibility for them and there would be no financial repercussions to him if he decided to turn a blind eye.
“I simply pay their loans month by month out of kindness,” says Lykos, who agreed to pay them as a teenager before he fully understood what that meant.’ Source
Many young folks just starting off in life are getting sacked with 100 to 200k thousand dollars in student loans and have no idea how difficult it is to climb out of that debt.