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How does being a parent affect your teaching?

If my sister has Parent Plus Loans will that affect my chances of getting one?

  • I'm a senior in high school and have been accepted to a private school that is $30,000 a year. Extremely expensive i could no way afford. Because of my parent's income i got a pell grant and an unsubsidized loan and am planning on applying for a parent plus loan. However, my sister has been attending an even more expensive private university ($45,000 a year) but because of her excellent grades in h.s she got $15,000 a year plus a pell grant plus an unsubsidized loan and she told me she has a parent plus loan to pay for the rest. She says that because she has one, i will not qualify for one to pay for my college expenses is this true?!?!?!

  • Answer:

    You and your sister don't have parent plus loans, your PARENTS are taking out parent plus loans. This means that THEY are borrowing the money for you (and her) to attend these expensive private schools and THEY are responsible for repaying these parent PLUS loans. Generally, payments on each loans starts within a month of two of each of you starting school. So really, the issue isn't how good their credit is, but their ability to repay the loans. How much money do they make because both of you leeching off them is a bit of a concern to me (and should be to you both, less you drag them into financial destitute). Below is a breakdown (estimated numbers) of what they are facing as far as their payments when they start borrowing..... SOOO: You and your parents need to be COMPLETELY aware of what is going on here because it doesn't sound like you do. Because it SOUNDS like your folks are poor (because you both get Pell grants) and you and they need to be SURE they can afford to repay these loans. Parent PLUS loans are put on a 10 year payment plan for EACH loan. Also be aware that schools this expensive aren't going to get any cheaper. Which means they will borrow at LEAST that much for FOUR years for EACH of you. So, by the time both of you are seniors your parents would have racked up this much debt with this much in payments (approximate). Your Sister's 45K school and parents total debt when she is a senior: PLUS Loan Freshman year (approx): 18,950 (payment 190 month) PLUS Loan Soph year (approx): 17,950 (payment about 180 a month) PLUS loan Jr year (approx): 16950 (payment about 170 a month) PLUS loan Sr year (approx): 16950 (payment another 170 a month) YOU at 30K a year school and approx debt for you: PLUS Loan Freshman year (approx): 18,950 (payment 190 month) PLUS Loan Soph year (approx): 17,950 (payment about 180 a month) PLUS loan Jr year (approx): 16950 (payment about 170 a month) PLUS loan Sr year (approx): 16950 (payment another 170 a month) Be aware payments start IMMEDIATELY upon borrowing.... so your parents will already be paying on those PLUS loans ($141,600 total) they had/have already taken out for your sister. THEN when you start going, they will have to add the PLUS loan payments to their monthly expenses... Each year two new loans (with two additional payments) will be added onto their monthly expenses. So this means that by the time BOTH of you graduate your parents will have taken out at least 8 parent plus loans with 8 separate payments totaling about 710 X 2 sisters = $1,500 a month. This would go on for 10 years (each separate loan is put on a 10 year payment plan). Can they afford 1,420 a month for 10 years after you both are seniors? Seriously? Are you both that selfish? If your parents have excellent credit

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Hold on here a minute: are you saying your family's income and assets are so low that your sister anbd you qualify for a Pell grant, your parents are saddled with a Parent PLUS loan (and you expect them to take out another), and still your sister can afford to attend a private university where she has to come up with $30,000 a year to attend? Is that your story? I think you're either missing several key elements here, or you're trolling. Which is it?

Denny

Your parents should be able to get additional PLUS loans, provided their credit checks out. However, the question that comes to my mind is SHOULD they? If you were eligible for a Pell grant, that tells me that your family has a low or modest income. Your parents are not that far away from retirement and should seriously consider the level of debt they are taking on at a time when they need to be salting away every dollar they can for their own retirement. If they have great credit, they should also consider looking for other loans because the PLUS has a very high interest rate. For that matter, do you want to be taking on a load of student debt that will take you years to pay off? There is a letter on this board that I just answered from a student who is drowning in debt and bitterly regrets taking on those loans. You might want to read it--it's the one asking about garnishing his wages. When you are all excited about being accepted to a glamourous private college it is very difficult for students and parents to focus on the realities of what that education is going to cost them. Add up the TOTAL amount of what it will cost to get a bachelor's degree at your school, not just the first year. Find out what kind of aid the college gives in later years--usually you get a lot up front to entice you into enrolling and then later it disappears. Look at what your loan payments will be. Find out what the expected salary for an entry level job for a person with a bachelor's degree in your major should be (assuming you can even get a job!). Then figure out what you'll have to give up in order to pay off all those loans. Will it be a car? Your first apartment? Your wedding? Your first child? And the same applies to your parents. It may be that the college you have selected is worth it, and if so, go for it. But think carefully about what you're getting for your money before you saddle yourself and your parents with years of debt.

nancy

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