Need info on parent plus loans, don't flame me!!

**Buckeye5** · 11-03-2008, 06:23 PM

DD#1 attends college: applied for parent plus loan figuring we would get turned down, and she would get more $$, that happened. We applied in May or June., so we pay for other thigns like some other classes that transfer from our community college, medical, car, and other things. On to DD#2, she will be attending a 4 year school beginning in January of this year, after transfering from a community college, we applied for the Parent Plus Loan a week ago, and we were accepted. I have mixed feelings about this, we don't need much more debt, but our credit must have improved since May or June. Don't say pay cash, not an option. Also, bnoth DD's work too, sometimes 2-3 jobs at a time and take 18-21 credit hours a semester, and receive A's and B's. They have received a few scholarships, but only about $1000 a year for each. They are looking also for more $$. DD#1 commutes to her school and drives round trip 75 miles. Sorry this is long, just need some info. Thanks ahead of time.

**Greebo** · 11-04-2008, 08:53 AM

Don't say pay cash, not an option.

Yes it is.

For example: DD could work a semester, save, then study for a semester, and repeat.

Nothing says a degree HAS to be earned in 4 years.

My $0.02.

**jdr250** · 11-04-2008, 09:08 AM

Just because you are approved for the loan doesn't mean you must accept it. Within 30 days of the school receiving the money you can send in writing your desire to cancel all or part of the loan. For instance if you dd has qualified for enough grants and loans and scholarships to cover tuition and books you could return all the money, or if they qualify only for enough to cover tuition you could keep only money to cover books.

**rainbowgc** · 11-04-2008, 11:28 AM

With the high costs of everything, if you can pay the loan do so but do a written agreement with the child to re-pay for your retirement savings. The current thinking on savings is retirement 1st college 2nd

**JerryG** · 11-04-2008, 02:26 PM

My parent plus loan was VERY accommodating. Make sure you understand the terms. They'll work with you to get it paid off. I understand about not wanting to take on more debt but this one was one of my easier pay offs.

**Greebo** · 11-04-2008, 02:43 PM

Originally Posted by rainbowgc

With the high costs of everything, if you can pay the loan do so but do a written agreement with the child to re-pay for your retirement savings. The current thinking on savings is retirement 1st college 2nd

Ugh - that sounds like a great way to change the taste of thanksgiving dinner for many many years.

If you're gonna pay for their education, do it outright.

**shellyrhds** · 11-05-2008, 08:33 AM

I think it's great that you are being a responsible parent and helping your hard-working, smart girls out as much as you can.. The only advice I can give you is to make sure you don't over-extend yourself to the point that you become a liability to them if something unforeseen happens...Make sure you take care of your future too!! Also, there are TONS of scholarships at the university in my town that aren't well advertised -- have them contact financial aid to get a listing of the endowments and funds that aren't really "advertised" to the students.. asking for help is always a good thing when it comes to college... Also, if your girls can claim they're not your dependents, they can also take out loans in their own names, and would be eligible for a lot more help that they don't have to necessarily repay -- pell grant, state educ. grants, etc. Of course, you would not be able to claim them as your dependent, and that might be a bigger plus to your family than having them strike out on their own... As far as working and then going a semester and working and then going a semester -- that might work for some people, but personally, it would just make it harder for me to stick with -- it's hard enough to deny yourself all the time as a college student -- turning 4 year degree into a 12 year poverty festival is not the way I would want to go!! In fact, I tried it that way 15 years ago, and now I'm back in school because I ended up dropping out.. when you take a semester off, it's way harder to go back.... Good luck and keep us informed -- and Way to Go on the smart, hardworking kids!!!

**nodmicks** · 11-05-2008, 09:13 AM

Originally Posted by shellyrhds

I think it's great that you are being a responsible parent and helping your hard-working, smart girls out as much as you can.. The only advice I can give you is to make sure you don't over-extend yourself to the point that you become a liability to them if something unforeseen happens...Make sure you take care of your future too!! Also, there are TONS of scholarships at the university in my town that aren't well advertised -- have them contact financial aid to get a listing of the endowments and funds that aren't really "advertised" to the students.. asking for help is always a good thing when it comes to college... Also, if your girls can claim they're not your dependents, they can also take out loans in their own names, and would be eligible for a lot more help that they don't have to necessarily repay -- pell grant, state educ. grants, etc. Of course, you would not be able to claim them as your dependent, and that might be a bigger plus to your family than having them strike out on their own... As far as working and then going a semester and working and then going a semester -- that might work for some people, but personally, it would just make it harder for me to stick with -- it's hard enough to deny yourself all the time as a college student -- turning 4 year degree into a 12 year poverty festival is not the way I would want to go!! In fact, I tried it that way 15 years ago, and now I'm back in school because I ended up dropping out.. when you take a semester off, it's way harder to go back.... Good luck and keep us informed -- and Way to Go on the smart, hardworking kids!!!

What wise advice! Buckeye~ I don't think you need to worry about being flamed. You know what you can handle or not. I am debt free and plan to stay that way if at all humanly possible. However if I can't pay for college and the kids can't I would take out some debt. Some might not agree but that is why it is called "personal" finance.

**Cricketlegs** · 11-05-2008, 05:54 PM

I took loans for dd#1 college. She is in her 3rd year. I will come out oweing about $14,000 for 4 years. Heh, I can drive my car another 5 years for the chance to send my baby to school. I have zero problems with it, nada, none.

I will not be paid back.

I was able to pay cash for step dd#2 as she got a full scholarship to jr college but opted for online classes so I was out $450 this semester. She flaked out and I got stuck paying the bill. My dh is fit to be tied but that is another story. That ship has sailed and the boatload of money sailed with it. Burn me once.....I don't come back so quick with the bucks...we are waiting to see if she figures out she is STUPID...

My advice. If you want to take a loan and send your kiddos to college--do it and answer to no one.

Be prepared all or nothing because sometimes it does come back on you.

Would I change anything--nope. Will step dd have to re-earn our trust~heck yeah.

Will we tell dd to pay us back--no. We decide to give it, no strings.

**peanut** · 11-05-2008, 09:02 PM

Well, we do things differently. It's cash only. And the rule that what we do for DD#1, we have to do for DD#2. The girls work their way through college, as well as get Student Loans. We contribute a token amount as well. One DD is talking about a year at school, a year at work to pay for the next year of school, and so on. The other has quit university at the moment to pay off her mushrooming student loans. We are in agreement with that idea.

A university education isn't all it's cracked up to be anymore. If you want to make good money go into the trades or technical schools. They are cheaper to attend and there are more jobs when you exit. Plus the potential for self-employment makes them really good income producers...at least, here in Canada, where you can write a bunch of stuff off on your earnings come tax time!

But, to each their own. If your children are university material (as one of mine is), and you feel you want them to get through without any delays, then you're probably going to have to go into debt for it. But I don't do debt anymore. The economy is too risky for it.

Jean