Parents will do anything for their kids, but would you take on loans just to fund preschool? Business Insider takes a look inside the crazy trend sweeping New York.There are few places where parents spend as much as New Yorkers do to educate kids who are barely on solid foods yet.
Childcare in New York City costs upwards of $13,000 a year (the highest in the country) and private pre-K classes can run more than $30,000 a year.For parents who can't afford the private route, public programs aren't necessarily an alternative. In 2011, more than 28,000 applicants vied for just 19,800 pre-K slots in the city's public schools, according to the New York Times.
A controversial new initiative by City Council Speaker and mayoral candidate Christine Quinn could help to change that.
Quinn is rolling out a pilot program that would offer low-interest loans to middle-class families with young kids for daycare, the New York Post's Beth Defalco reports.
The loans will be doled out by Neighborhood Trust Financial Partners, a local credit union that already offers a wealth of free financial services to city residents. For program's first year, 40 6-percent interest loans will be up for grabs for families with children between 2 and 4 years old.
In order to qualify, families must earn between $80,000 and $200,000 per year, have a 620 minimum credit score, and sign up for a free financial counseling appointment with Neighborhood Trust.