Why do colleges push the Parent PLUS loan above others

cptofthehouse
Sun, 05 Apr 2015 19:31:51 +0000

Ask Deadbeat ex if she owes 90 days or more on anything on credit report and if she’ll apply for PLUS. If she gets turned down your student gets about $4K more of student Direct loan which has a more favorable interest rate and is eligible for reductions if student gets into certain types of work.

I know a family where the Dad was quite old before he had his kids. He was divorced from the mother. He was also dxed with cancer and knew it was just a matter of time, He took out PLUS to the max for both of his girls, just paid the interest on it and the minimum when the older one’s loans came due. He died after less than a year’s worth of payments with nearly a half million in loans outstanding, all forgiven. He had already transferred his accounts into joint ownership to his girls so that there was nothing to go against that last 1099.