The Parent PLUS Loan Shell Game

jnm123
Fri, 28 Jan 2011 13:41:32 +0000

Hey JRZMom–

You mean I should’ve asked for a student discount when I applied for the PLUS loans? :)

Seriously, I know. I’ve been in the ‘game’ since '05. Fortunately, D1’s school was the conduit & handled the loan servicing & consolidation very well, even if I knew they were getting a piece of something from somewhere. Private loans? No way, too much risk from shysters. And–although it was tempting at the time–I didn’t tap into my home equity either. Didn’t want to combine mortgage & education monies, much like the separation of church & state! And in hindsight, glad I didn’t with the spiraling home value vortex.

So we have the PLUS loans, and although I hate like hell paying the juice, it is what it is until we turn 59+ and can start to siphon some IRA money. And BTW, it ain’t that easy earning over 7.9% in that just to keep up, unless I take on some added risk.

I still think–regardless of which administration is in there at the time–there will be more loosening of the IRA distribution laws. One can hope anyway!