Student Loans - Parent Plus Loans
The average U.S household owes $47,671 in student loan debt. The days of being able to work minimum wage to pay your way through college seem to be over. Education costs have skyrocketed over the last few years surging over 538% since 1985 far outpacing inflation.
Many parents are trying to help their children with the burden of student loan debt. These new loans called Parent Plus Loans, while having their advantages, also have some traps for the unwary. These Parent Plus loans now total over $89 Billion dollars with an average of $24,694 owed on each loan. While the goal of these loans is to provide financial stability for their kids it can sometimes have a growing effect on the parent's own ability to pay. Parent Plus Loans have a lot fewer payment options than traditional federal student loans. If a parent is not prepared, they may sign themselves up for loans that could cripple their financial independence. With the growing millennial generation, it is also becoming more common for parents to not only have their own student loans but also these Parent Plus loans. This only complicates the problem since consolidating normal student loans with Parent Plus Loans could limit the repayment options available on even the regular student loans.
Luckily there are many ways to either avoid Parent Plus loans through some pre-college planning. There are also ways to deal with Parent Plus loans once they have been taken out. These include things like consolidation, income driven repayment, and other forms of student loan relief.
Student loans seem to be daunting with what seems like few options to deal with them. With a knowledgeable attorney from Martelle, Gordon & Associates we can help you navigate all of your potential options. There is relief and helping your child achieve their occupational dreams is something every parent wants to give. You do not have to sacrifice your own financial security to do it though.
 https://www.nerdwallet.com/blog/loans/student-loans/student-loan-debt/  https://www.bestvalueschools.com/understanding-the-rising-costs-of-higher-education/  https://www.forbes.com/sites/zackfriedman/2019/05/07/student-loans-parents-seniors/#3cbb18ed1e62