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  • Parent Plus loans are your loans. They are not your son’s loans. They are loans to cover your portion of your son’s educational costs. The loan amount is based on your family’s estimated contribution. You begin paying ParentPlus loans six months after they are issued.

  • Unsubsidized loans grow interest. You will be keeping the loan balance down my paying the interest. You dont *have* to make interest payments while your child is in school at least half time.

  • First, let me kind of explain Parent plus loans. Economically speaking, the feds expect people to do certain things with their money. One of those things is saving for kids college. So they actually calculate based on your household income how much you should’ve been able to save for kids college. Now, everyone’s households and expenses are different and some people either through not having enough money or not prioritizing college savings for kids don’t save.

    Well here comes Parent Plus loans to make parents feel a bit better. “Ok, you didn’t save money for your kid to go to college so here’s a loan you can take out for your kid”. Now, they say that this is a good thing. It helps the parents help fund their kids education even if they didn’t save up anything.

    My opinion is that it actually significantly hurts these families. If they couldn’t save before, then how is giving them a significant loan with a significant interest rate helping? It’s not.

    So you really have to think about what you’re doing here. Sometimes people get caught up in the idea that their kid should be able to go to school wherever they want regardless of the cost, but it’s a good idea to be more realistic about what you can afford and what other options there are to still get them a great education, but for lower costs. Idealism can cost your family decades of financial stability. You wouldn’t go out and borrow $30,000 so that your kid can get a brand new Jeep Grand Cherokee you buy them what you can afford to get the job done.

    Also, TALK to your kid about the responsibilities of this Parent plus loan. Legally, only you are required to pay the loan, but if your kid wants to be responsible for payments or a part of the payment talk about that BEFORE taking the loan.

    I hear horror stories here everyday where either the Parent is stuck with the payments because their kid cannot find work and can’t help with the payments or where the kid has no idea their parent took out these loans (sometimes parents use the money for other things) and now Parent surprises the kid with a $600 monthly bill for the next decade. Not fun. This stuff ruins lives and ruins relationships.

    I would seriously consider switching to a community college while working at least part time to save up some cash to go into a full university. I would never take out a Parent plus loan again. To me they are nightmare fuel. Especially given the amount of suicidal posts we get here where people just feel consumed by their debt.

  • I have plus loans from when I was in school, I work in the medical field. Be cautious taking them. A lot of the public service forgiveness and if you work in an underserved area loan forgiveness will not forgive plus loans as they are in the parents names. Even if the student refinances them with a private loan company they still don’t qualify.

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