Private school experts and the small number of lenders who provide loans for kindergarten through 12th grade say pre-college loans are becoming more popular.
TheAtlanticWire.com reports that the total amount of loans families requested rose 10% compared to a year ago.
According to the National Association of Independent Schools (NAIS), about 20% of families that applied for aid to pay for their children's kindergarten through 12th grade private school education had incomes of $150,000 or more; up from 6% in 2002-03.
According to the NAIS, the rise in private school loans jives with a rise in tuition. The average cost of private school is nearly $22,000 a year, up 4% from a year ago and up 26% from 2006-07.
Popular VideoThis young teenage singer was shocked when Keith Urban invited her on stage at his concert. A few moments later, he made her wildest dreams come true.
While schools increased their financial aid budgets, the gap between free aid and tuition costs is getting bigger for many parents.
As a result, enrollment is dropping as fewer families can afford to pay. Total private school enrollment is projected at around 5.3 million this year, down 11% from 2007, according to the Department of Education.