Parents in the US are putting their retirement funds at risk by dipping into their savings to help pay for their children’s student loans, according an annual survey by Discover Student Loans. More than 60% of parents said they would be “likely” to help repay their offspring’s student debts and regarded them as a “shared burden”, while a survey by Legal & General said 8 out of 10 parents believed their children’s loans would prevent them from being financially independent. This follows our note last week highlighting the increasing financial reliance on parents in the UK by their children, "the Bank of Mum and Dad", with Fidelity warning that relying on parents might soon be unsustainable.
Parents in the US are putting their retirement funds at risk by dipping into their savings to help pay for their children’s student loans, according an annual survey by Discover Student Loans. More than 60% of parents said they would be “likely” to help repay their offspring’s student debts and regarded them as a “shared burden”, while a survey by Fidelity said 8 out of 10 parents believed their children’s loans would prevent them from being financially independent. This follows our note last week highlighting the increasing financial reliance on parents in the UK by their children, "the Bank of Mum and Dad", with Legal & General warning that relying on parents might soon be unsustainable.