Why do colleges push the Parent PLUS loan above others

rachel41
Wed, 08 Apr 2015 13:06:44 +0000

Has anyone consolidated their PLUS with their own direct loans. I have a consolidated loan that would be costing me dearly if I wasn’t a teacher. I made horrible mistakes as a young independent student and I’m trying to get all this credit mess cleaned up. I kept deferring and taking out more then I should. I didn’t have parents to help me understand anything and neither did my husband. He kept making financial mistakes which led to me filing bankruptcy, divorce, 3 jobs, consumer debt consolidation , and a 2nd marriage. The bankruptcy is off my record, the debt is all paid, and despite my poor health and horrible work conditions I am working as a teacher so my loans will finally be forgiven in 8 more years.

Now my daughter who I guided through my own mistakes has an opportunity of a lifetime to go to Cornell. When I got remarried I told him I wanted to keep things seperately just on paper to keep my low student loan payments or for potential financial aid for my daughter. . We didn’t even have to get married because my benefits cover domestic partners. He promised me that the money we saved in taxes would more then make up for her college tuition.

Well fast forward 5 years. She’s made it into an Ivy and he doesn’t want me to sign a Plus loan or any loan for her yet she’s stuck with an EFC of 38000 because of his high income. If I had kept things seperately I only make 75000 and I have 2 children from my first marriage. Their father has continued to make poor decisions and is severely I’ll on medicaid and applying for subsistence for himself.

So my only option for her is the PLUS because her father doesn’t even qualify. However I read that I might be able to consolidate the Plus into my existing consolidated laon and keep the same payments and it could possibly all qualify for loan forgiveness.

And for those who might judge. I was severely misguided as a young student with the loans. The schools didn’t care that a 13000 loan would turn to 25000. This is the education that I want to give my kids. Pay those loans off asap. While you are you g and have the energy to work more and harder. Live cheaply as possible while your young and you only deserve the fruits of your labor when all the work is done.

So has anyone consolidated their plus. And is there any other option for my child. I do t want to just cosign a private loan for her because I feel there is jo safety net. Life has taught me there are no guarantees even if you work hard and do the right thing