Sending a child off to college is often seen as an important step in life, and most Florida parents feel proud that they are helping their children further their educations. While a college education is often essential for a good job, it can also have a downside. Families with children in college may be more vulnerable to home foreclosure during difficult economic times.
Between 2005 and 2011, tuition for both two- and four-year institutions nearly doubled. For families supporting the nearly 40 percent of people aged 18 to 24 who were attending college at the time, this was financially devastating. Not only did these families have to contend with the difficult economic period of the Great Recession, but they also had to deal with growing and seemingly impossible tuition. During that time, parents often drew money from their earnings and savings, with many also turning to loans to cover the high costs of higher education.
A group of researchers recently concluded that these families experienced a higher rate of foreclosure during that same period of time. This backs up what previous studies have demonstrated, which is that households without children experienced fewer foreclosures than those with children. With an explanation as to why, some experts believe that policy changes should be implemented to help protect these families.
Home foreclosure is a jarring experience that can have a negative financial and emotional impact. However, most Florida homeowners do have options at their disposal, such as loan modification. This involves negotiating with the lender for different terms on the loan, such as a lower monthly payment.