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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

  • rockvillemomrockvillemom Registered User Posts: 6,751 Senior Member
    Well, glad I looked. I do have a letter from February on one of the PP loans showing a pymt of $295 starting 1/2017. So - I would imagine they both start 1/2017 with similar amounts. I wish this info was on the servicing website. It should be the first thing you see when you log in.
  • RedandwhiteRedandwhite Registered User Posts: 11 New Member
    PP loans give a sizable kick back back to the colleges so colleges love this loan as it is another form of very easy revenue.
  • HappyFace2018HappyFace2018 Registered User Posts: 751 Member
    @rockvillemom Has this loan been "fully disbursed" for both semesters? I thought payments didn't start until 60 days after the loan was fully disbursed for both semesters.
  • rockvillemomrockvillemom Registered User Posts: 6,751 Senior Member
    He graduated in May. Last disbursement was January 2016.
  • HappyFace2018HappyFace2018 Registered User Posts: 751 Member
    @rockvillemom Oh, got it. I have two very good friends who are in the same situation. One graduated from Georgetown and another from University of Pennsylvania. As we chatted about my sweet girl heading to George Washington as a freshman (in comparison to other less expensive schools) they said what gives them solace regarding the PPL payments is the success their kids have had since graduating. One is in a graduate program in Berlin, Germany which is being paid for by their employer. The other is in law school and received scholarships to cover most of the cost.
  • MassDaD68MassDaD68 Registered User Posts: 1,453 Senior Member
    Isn't that whole delemna that parents find themselves in? Is it worth borrowing money for this school? Will this more expensive school give my child a better start in life? With no crystal ball to see the future, how does one make a sound decision that is not full of emotion? If it works, then it is worth it. If not, then it is a cautionary tale.
  • threebeansthreebeans Registered User Posts: 305 Member
    http://www.forbes.com/sites/nextavenue/2017/01/06/the-student-loan-crisis-of-older-americans/#64d9b6a0157d

    This article about retirees taking their kids student loan debts into retirement scared me.
  • songmansongman Registered User Posts: 408 Member
    and never once was either political party that created these loans ever blamed I believe bankruptcy as it applies to college loans was passed under GW Bush's admin?.... Even when Liz Warren was screaming about the outrage of college debt and I tend to agree with her,no one ever brought up why the government blessed some of these loans at 7% yet paid their own bond investors 1.5% on 10 year treasuries they issued! She mentioned this but because wall street shut her up the issue died down. College loans are not tied to or correlated to the CPI, salary increases or even spread margins that are considered reasonable. These spread margins are usurious!
  • rockvillemomrockvillemom Registered User Posts: 6,751 Senior Member
    Yes - 7.21% and 6.84% - it is outrageous given the overall interest rate level the past few years.
  • twoinanddonetwoinanddone Registered User Posts: 14,522 Senior Member
    College loans are not tied to or correlated to the CPI, salary increases or even spread margins that are considered reasonable. These spread margins are usurious!

    Not even close. The criminal usury rate in most states is above 40%, and a supervised lender (licensed by state or feds) can often go higher than that. For any other unsecured loan, you are going to be paying above 10%, and there is going to be a limit on how much you can borrow in the $10k range. Credit cards might be at 7% for those with very high credit scores from their local banks and credit unions, but most cards issued from Chase or B of A have rates in the high teens. Unsecured credit has its price.

  • toomanyteenstoomanyteens Registered User Posts: 669 Member
    @threebeans I am stunned that people actually DO that
  • HImomHImom Registered User Posts: 29,756 Senior Member
    Payday loans have amazingly high interest rates and are widely located throughout our state and I suspect many others. They make CC interest rates look modest!
  • VgKingVgKing Registered User Posts: 15 New Member
    To me it looks like a trap. Whoever said this is a man eat man society was not wrong after all!
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