Parent PLUS loans became the last resort for many ordinary or lower-income families to afford their kids’ education. But programs are available for parents to get debt relief with Parent PLUS Loans.
Parent PLUS loans became the last resort for many ordinary or lower-income families
The Department of Education revealed details of a reimbursement plan overhaul that could share monthly payments for student loan borrowers. Unfortunately, one group, the 3.7 million borrower parents, are in debt to parent PLUS loan excluded as beneficiaries. Policymakers have long left out parent PLUS loans.
Parent PLUS loans were initially for well-off families as a tool, but now they have increasingly become the last resort for lower-income families to afford their kid’s education. Parents can borrow up to the total cost of attendance per child with Parent PLUS loans.
Parent PLUS loans have higher origination fees and interest rates fees than undergraduate student loans in the state. Borrowers of Parent PLUS loans have racked up to $108.5 billion in loans.
Permanent Federal Relief Programs available as options for parents
Even though a payment plan service won’t help, there are options to avail, and these are the following Permanent federal relief programs as options for parents.
- Income-Contingent Repayment
- Public Service Loan Forgiveness
- Deferment or forbearance
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