What You May Not Know About Parent Plus Loans

: Chris Lee Law Firm

  Filed under: Student Loans

student loan, debt, bankruptcy, attorney, attorneys, lawyer, lawyers, dallas, texas, tx, fort worth, mckinney, hurst, law firm, tx, bankruptcy process, debt collector, chapter 13,Your child has gotten accepted into college and you are ecstatic….at first. Then comes the conversation about exactly how you are going to be able to pay for that degree. One option is Parent Plus loans.

While these loans may seem like a viable option at the time there are many things to consider before signing on the dotted line. You may want to consider that these types of loans qualify for only a very limited access to programs such as “income driven repayment” meaning that you will be on the hook for the full amount no matter if your circumstances change dramatically after receiving them.

Also, when getting all the grant, scholarship and work-study program paperwork you may think that these fall into that category and will not require repayment, think again. You may be paying back these loans while trying yourself to save for your own retirement. This is a very difficult situation to be in.

Another thing to consider is that these types of loans are exceptionally easy to qualify for, meaning that just because you are able to secure high loan amounts you in fact may not be able to afford to repay them. They are in the parents name they qualify for very few of the forgiveness and lower payment options that regular student loans may qualify for.

Remember to do you due diligence and be very wary of anything that sounds too good to be true. If you are in difficulty with your student loans, then be sure to speak to a student loan debt relief attorney to find out what your options are.

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