College tuition costs are very high these days. So, helping children pay for college can be a major financial endeavor for families. Recent research indicates that among the things the financial stress from this endeavor could expose families to is an increased foreclosure risk.
The study looked at data regarding the Great Recession. It used this data to compare college attendance trends and foreclosure trends in more than 300 broad metro areas in the U.S. for the period running from 2006 to 2011.
The research found that, during this period, when college attendance increased in a given area, foreclosure rates tended to jump in the area a year later. While the foreclosure risk jump was the biggest when the families that college attendance rose in were middle-income, there was a jump when attendance rose for any income group.
This would seem to point to a link potentially existing between paying for college and foreclosure risk. So, when unexpected financial pressures strike, families that are helping their kids pay for college might be particularly at risk for foreclosures.
Now, this study’s results do not mean that families should just stop helping their kids with college costs. After all, education can be extremely important for a person’s future. These findings do suggest, however, that when coming up with a plan for helping with college costs, families may want to give careful thought to the financial risks that can arise and what can be done to mitigate these risks.
This study also underscores the point that there are a wide range of circumstances that could subject families to the possibility of foreclosure. When the chance of foreclosure looms, it is important for families to carefully look into their options for dealing with the situation. This includes looking into how the different routes would impact their other key goals. Skilled foreclosure defense attorneys can help families with reviewing their options.
