With the rising cost of college, parents are increasingly turning to federal PLUS loans to help pay for their children’s education. Since 2016, the amount of outstanding parent PLUS loans increased from $71.1 billion to $104.8 billion—a 47% increase.
With high interest rates and fewer repayment options, parent PLUS loans are one of the toughest types of federal student loans to repay. The consequences of nonpayment can be severe, significantly impacting your finances. However, there may be options to get some relief.
Your Student Loan Score
How competitive is your student loan? Enter your loan details below to check (estimates are fine).
Parents usually cover about 10% of education costs through loans, according to a recent Sallie Mae study. On average, parents borrow $11,394 per year in student loans to help their children pay for college. If you took out that amount in parent PLUS loans for all four years of your child’s college education, you’d have over $45,000 in debt.