The Parent PLUS Loan Shell Game

jnm123
Thu, 27 Jan 2011 07:12:34 +0000

Thanks, guys, for the input.

Not much sense in consolidating at this point. Most all of them are at 7.9%, with an older, smaller consolidation at 6.125%. I’ve lined up the payments so they can all be done online the same day of the month. And I’ve had to defer one of the new ones 'cause the monthly nut was getting way high. Fortunately, as long as the student is in school full time, that’s possible. Of course, the interest still accrues. The government LOVES making 7.9%.

I have to tell you, something’s gotta give here. Either they loosen up some of the penalties & don’t count early IRA distributions for college expenses/loans as ordinary income of the year of disbursement, or there will be tons of defaults.