The Parent PLUS Loan Shell Game

jnm123
Thu, 27 Jan 2011 11:30:07 +0000

The trend I’m seeing is that these ‘servicers’ designated by the government are absolutely overwhelmed by the number of loans funnelled over to them, and have people on the phones with very limited knowledge of the differences between deferring loans, forbearances, interest-only, etc. The government is pretty flexible on granting these things because I think they understand the hard times people are going through right now, as long as you end up paying the P&I at some point. Again, they LOVE earning those high interest rates for the money they lend out to you.

As kelsmom says, watch the servicers’ handling of these loans like a hawk because chances are there’ll be a bonehead screw-up somewhere along the line.