Beware of Parent Plus Loans

cptofthehouse
Mon, 15 Oct 2012 06:54:27 +0000

Bluebayou, I don’t know the statisitics regarding the PLUS and how many are underwater. I have read anecdotally of families whose federal checks such as tax returns and social security were taken by the government for repayment of loans that went into default status. So what I am saying is that though I do not know the specific numbers or even the magnitude of the problems with the PLUS program, I do know that there are cases where the long arm of government has reached in and gotten some funds due to them as they can do. THis was in response to your statement that the government can but hasn’t been doing so. They can and have. How often this is happeining and how close we are to a crisis in this regard, I don’t know.

When we read the articles about people in terrible trouble from these college loans, there is usually not an identification of the loans themselves. So, whehter the bulk of the problem is with the PLUS or with the private lenders, I don’t know. There are always problems with people not being able to repay loans. That is nothing new. The quesiton is how severe this problem with PLUS. Also how much of the problem was anticipated and built into the rates and recovery tactics and action.