Mom gave you great advice throughout the years – If you don’t eat your vegetables at dinner, there would be no dessert. If you didn’t act right, you were going to regret it when you got home, and if you made good grades in school, then your parents would pay for college.
When Mom and Dad made those promises they also couldn’t fathom how much college tuition would increase. I mean, there’s inflation, then there is inflation – college style.
Even if your parents had been saving and investing for your college tuition, the cost of college has been skyrocketing. That is where Parent PLUS loans came in. The loans were supposed to help pay for college, but now they’re hurting many parents.
Many Parent PLUS loans are in default – $62 million dollars of them.
Unable to retire, some parents need to continue to work just to pay off these loans. Others might have lost their jobs, or cannot work because of health reasons. In many cases, parents have no other option but spend every cent they have paying student loans. Sometimes, they even have to choose between buying food and gas, or paying a student loan. If a loan payment is missed, it could mean defaulting on that loan.
This mounting student debt has forced many baby boomers to move in with their children just to survive – becoming boomerang parents.
While Parent PLUS loans can be incredibly stressful, there is a light at the end of the tunnel. Options for repaying Parent PLUS loans are different than traditional student loans, but there are programs that can help. Take the survey to see if My Education Solutions can help you!