Avoiding the Student Loan Spiral: What Every Parent Should Know
As a college counselor for over 22 years, and a licensed guidance counselor, I’ve helped hundreds of families navigate the emotional and financial rollercoaster of college admissions.
I’m also a mom of two college students, and like most parents, I want the best for them, including a future from the burden of school loan debt.
While that may seem like a straightforward goal to accomplish, there is a hidden risk that families don’t see coming.
Once your child starts college, you may no longer have access to their academic orfinancial records unless they give you permission.
I’ve seen students who seemed to be doing fine but were failing classes or borrowing more loan money than they needed. Their parents didn’t find out about it until it was too late to reverse the damage.
While I’m a firm believer in student independence, I am also an advocate of sharedresponsibility. When families are shut out, they can’t help their children make smart, informed decisions.
While I’m a firm believer in student independence, I am also an advocate of sharedresponsibility. When families are shut out, they can’t help their children make smart, informed decisions.
What if colleges encouraged students to grant access through a simple FERPA waiver? What if families could track things like credit progress, GPA, or loan balances without being in the dark?
It’s not about control, it’s about support.
By working with many families over the years and guiding my own college-age children, I found several ways to stay ahead of student debt.
Teach loan basics early.
Many teens don’t understand interest rates, grace periods, or the total cost of repayment. Talk about this before loans are taken out.
Use each college’s Net Price Calculator.
This gives a personalized cost estimate based on your financial situation.
Track credit and degree progress every semester.
Falling behind by just one class can add thousands in extra tuition and loans.
Stick to the “first-year salary” rule.
Try not to borrow more in total than your child expects to make in their first year after graduation.
Request access to academic and financial info (with your student’s consent).
Encourage your child to sign the FERPA waiver so you can stay informed and support them from a distance.
College success isn’t just about being accepted into the school of your choice; it’s about finishing strong and doing it without drowning in debt.
If you are a parent, educator, or counselor, let’s raise debt-savvy college grads together by encouraging more transparency, earlier planning, and open conversations.