Student Loans: Are ParentPlus Loans Eligible?
When President Joe Biden announced the Student loan debt Dropping out between $10,000 and $20,000 was celebrated not only by students, but also by many parents who took out loans to help with their children’s education, known as Parents PLUS loan.
Corresponding The Century Foundation$104 billion is owed by approximately 3.7 million families who have an average debt of approximately $29,600 and are now eligible for up to $20,000 of their debt forgiveness.
What are Parents PLUS Loans?
Parent PLUS loans are federally funded student loans intended for parents to help their children pay for their college education and PLUS is an acronym that stands for Parent Loan for Undergraduate Students.
Direct PLUS loans as they are now called by the Ministry of Education are unsubsidized, which means parents have to pay interest on these loans, when the fixed interest rate is actually 7.54%, according to Bankrate, well above the regular student loan rate of 4.99%.
Alexandria Ocasio-Cortez spoke about Parent PLUS loans
That Representative of the Democrats for New York, Alexandria Ocasio-Cortez explained this week via her social media platforms that parents who borrow money for their children’s education also benefit President Joe Bidens Student Loan Forgiveness Plan.
Her words confirm that this isn’t just a millennial problem, as baby boomers have on average more debt ($43,554) than Gen X ($41,910), according to Credit Karma.