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PARENT PLUS LOAN

By Terry Savage on December 22, 2021 | College Savings / Student Loans

MY HUSBAND HAS A PARENT PLUS LOAN THAT HAS HIS CHILDREN’S NAMES ON THEM AS WELL. ARE THEY EQUALLY RESPONSIBLE FOR THE LOAN? THEY HAD STUDENT LOANS IN THEIR NAMES BUT ARE MAKING PAYMENTS ON OR PAID OFF THOSE LOANS. MY HUSBAND IS PAYING ON ABOUT $60,000.00 FOR YEARS AND YEARS NOW. HE IS A UNION PIPEFITTER AND GETS LAID OFF PRETTY REGULARLY IN THE WINTER MONTHS. HE THEREFORE TAKES FOREBEARANCES ON THEM AND SOME TIMES ISN’T EVEN ABLE TO PAY THE INTEREST MONTHLY. ONE CHILD DID NOT GRADUATE AND THE OTHER ONE GRADUATED AND BECAME A PIPEFITTER. WHICH HE COULD OF DONE WITHOUT EVER GOING TO COLLEGE. ANYHOW, I’M SURE YOU SEE OUR BITTERNESS OF STILL PAYING. IS THERE ANYTHING WE CAN DO?

Terry Says

I’m so sorry that you — and millions of parents — are caught in this situation. YOU are responsible for the payments! And PLUS loans are the most expensive loans out there and carry the highest rates. And they typically cannot be refinanced.
I’ve said that for years!
Now, your only option might be refinancing your mortgage and taking out some equity to pay down as much as possible on the loans. The interest on that part of your borrowings wont be deductible, but it will be lower by far than the PLUS loan interest rate.

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