How does the plus loan effect married parents

cptofthehouse
Thu, 02 May 2013 08:23:38 +0000

Your mother OR your father can apply for PLUS and it would be based on the individual’s credit report and would not affect the other anymore than a department store or bank credit card would if your mother took one of those out. But,yes, if your mother should default, they would come after her and any joint properties, joint tax refunds, joint accounts could be garnished according to whatever law there is about those things. There are limits and specifics, but the bottom line, is yes, it can come to that. Also if your parents apply jointly to something like a second mortgage or car loan, her credit would be checked and it would be taken into consideration. Do note, that iIf there are any outstanding bills on your mother’s credit report, I can’t remember if it’s 60 or 90 days overdue, she will be denied. If that happens, you can get an additional $4k in unsubsidized Staffords.

For PLUS, the application online does ask if a person is employed and the place of employment. For a home maker, self employed and the home address is one way to answer it. Don’t know if someone would be denied if the answer is a flat “no” for employment. Be aware that the loan cranks up interest at close to 8% which is no small amount. Yes, you can defer it but you sure are paying for that deferral.

You need to talk to the university financial aid officer and let them know your situation. As a new student, your status could have automatically been relegated as freshman standing, your credits may not yet be vetted and been made official yet. You can take out $6500 of Staffords as a junior vs $5500 as a freshman.