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College Confidential’s “Dean,” Sally Rubenstone, put together 25 of her best tips. So far, the "25 Tips from the Dean" eBook has helped more than 10K students choose a college, get in, and pay for it. Get your free copy: http://goo.gl/9zDJTM

Read this before you take out a Parent PLUS loan

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Replies to: Read this before you take out a Parent PLUS loan

  • HappyFace2018HappyFace2018 Registered User Posts: 745 Member
    @WISdad23 I could not agree with you more! I love your "stupid tax" comment. Taking out a PPL is not a crazy thing to do if it is part of a thought out process. Those who don't think through the process deserve the consequences. Faulting the lender/government is ridiculous. I know families who have taken $50,000 a year and are gradually paying $600, $1,200, $1,800 and $2,400 a month as their child moves through the college experience. Is that crazy? If the parent can't afford it YES! But they knew damn well that would be the case before they took the loans...so why blame the lender/government. :-?
  • BillsJohnBillsJohn Registered User Posts: 1 New Member
    Interesting...thanks for sharing. I found these tips to be helpful...understanding your loan seems to be the most important:

    https://www.sofi.com/5-tips-refinance-student-loans-2017
  • playacarplayacar Registered User Posts: 37 Junior Member
    It sounds like everybody involved in the loan transaction, the student, the obligors and anyone not obligated on paper but whose income will likely need to be used to repay the loan should take out a life insurance policy or increase their current policies to cover the full amount of the loan, included anticipated interest accruals. For PLUS loans, if death of the student or guarantor triggers full forgiveness of the loan, then insurance wouldnt be needed for any of these covered parties. All parties likely need to be covered for other types of loans.
    We know of a family whose son tragically passed away while attending medical school. His parents had largely financed his education through home refinancings, with the idea that their high earning future son would help with the future repayment. Now they are faced with the double heartbreak of the loss of their son and possibly, the loss of their home. Horrible situation.
    Term life insurance is usually not super expensive, so hopefully most people who are taking out loans can also purchase a term life policy to protect themselves. In a perfect world, everyone would also obtain disability insurance, as well.
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