With skyrocketing tuition costs and the economy making student loans harder to get, many families fear that college could be out of reach for their children. Cathy and Jamie disagree on how to pay for their daughters' tuitions—but they're running out of time. Their oldest, Alex, will start school next fall and is considering schools that will cost $40,000 a year.
Jamie has told Alex she can go to the school of her choice and is thinking about taking out a $160,000 loan to pay for it. "I think it's our responsibility to pay for her education," he says. "I would mortgage my home seven times over to send my daughter to the college of her choice."
Cathy isn't so sure. "I don't understand paying a gazillion dollars for college when Alex doesn't even know what she wants to study and we have another daughter coming up for college in two more years," she says. "I work hard for us to live within our means so that we can retire someday, and I don't want to go into debt over this."
Now, the couple is asking Suze whether they should go into debt for their daughters' college educations.