Parent Plus Loans for College Can Be Toxic

 The Subprime Loans for College Hiding in Plain Sight

Writing for The New York Times, Ron Lieber explains how poor a choice Parent Plus loans can be for many families. 

"If you want your kids to go to college but you can’t afford the bills, the federal government has a deal for you that will blow your mind."

"You can borrow the entire cost — minus any other aid your child receives — through something called a Parent PLUS loan. Moreover, your income — and thus your ability to repay the debt — doesn’t matter. As long as you don’t have one of a handful of black marks in your recent credit history, you can borrow six figures even if your take-home pay puts you below the federal poverty level."

"This is totally bananas. But don’t take my word for it."

Think tanks and policy institutes on all sides of the political spectrum agree that the loose lending policies letting just about anyone sign away their financial future are a terrible loan program. 

These loans have been particularly toxic for low income families, many who are Black who are saddled with debt they can never replay.   

You need a subscription to the NYT to be able to read the full article but if you are considering one of these loans, do your research and consult a financial advisor before signing up. There are other ways to afford higher education!