Pensioner vouchers for daughter and she now faces losing her home

The US broadcaster CNBC reports on pensioner Rebecca Finch of Vinton, Virginia, who has to take on her daughter Sabrina’s debt. Sabrina suffers from bipolar disorder and therefore stopped her training to become a nurse. Because her mother signed a student loan for $31,000 (about 28,000 euros), she is now in danger of losing her house.

Rebecca has to spend more than a third of her pension on allowances

Sabrina began her training around 2004 after years of working in low-wage jobs, she admits to CNBC. So her mother Rebecca was happy to support her daughter’s lifestyle. 20 years later, Sabrina is receiving state aid for those unable to work and has been discharged from student loans due to her illness.

Not so Rebecca. She is still stuck with her state pension of almost €1,500 on her daughter’s student loan. “They could take her house with them,” worries Sabrina, who is speaking to the station on behalf of her mother because of the 85-year-old’s health problems. A mother and daughter are now regretting their decision to use a private service provider that charges monthly installments of 575 euros.

Student loans become a problem if you successfully complete your studies

According to CNBC, private student loans are a growing problem in the US as they increasingly require guarantors. Experts say that it is very difficult to get relief from these loans, putting a lot of pressure on families. In Britain too, students and trainees are complaining about high levels of debt.