Anyone else preparing to take our parent loans for 2023-2024? If so, how much

[Anonymous]

We did not plan to have to take out loans, but we think it will be worth it.

If you're taking out loans as a parent (in order to let your student go to the college of their choice), can you share how much per year you are planning to borrow, and from what institution, and at what interest rate, if possible?

(And please, no posts about how we should not take out loans. We think it will be worth it to take out loans (as parents), and so have already decided to do so, even though we understand the risks.)

[Anonymous]

If you are going to do this, try to borrow Parent Plus Loans first. You’ll need to fill out the FAFSA. They have more flexible repayment options & protections than private options such as Sallie Mae, Discover or College Avenue, which are institutions you could borrow from privately.

This is under the assumption that the direct/stafford loan limits of $27k (total, over 4 years) isn’t enough and either parent plus or private loans are required.

[Anonymous]

This is the parent plus loan application, to complete in addition to FAFSA:

https://studentaid.gov/plus-app/parent/landing

https://studentaid.gov/understand-aid/types/loans/plus/parent

They have a 7.54% interest rate for 2022-2023 borrowers. I don’t see 2023-2024 interest rates released yet for them.

[Anonymous]

I know you don't want to hear it, OP, but 7.54% interest in this economy is just not intelligent. You don't get a house at the end. Your kid gets a diploma whose worth is limited to what he's going to do with it. Might as well go in-state.

[Anonymous]

Not taking out parent loans - told kid how much we could afford and we will work with that budget. OP I know you said you don’t want to be critiqued but I’d think long and hard about >$20,000. I’ve heard horror stories. Community college is a perfectly reasonable option.

[Anonymous]

Here is the application for Sallie Mae private undergrad student loans. If you are going to do this, choose fixed interest rate instead of variable. It says that their most creditworthy borrowers can get a 4.50% interest rate.

That is lower than the interest rate for Parent Plus Loans. However, private loans do not let you have income based repayment, PSLF, income driven repayment, teacher loan forgiveness etc. In extreme, rare circumstances it is easier to get private loans discharged in bankruptcy than it is with federal loans. There is no chance Sallie Mae loans will ever be forgiven. Make of those that you will.

https://www.salliemae.com/student-loans/smart-option-student-loan/?lnkid=SM-PSL-body-loanoptions-undergrad

[Anonymous]

Anonymous wrote:
I know you don't want to hear it, OP, but 7.54% interest in this economy is just not intelligent. You don't get a house at the end. Your kid gets a diploma whose worth is limited to what he's going to do with it. Might as well go in-state.

Kindly, instate colleges are expensive too. I’m not sure why you’re assuming OP’s kid is going OOS or private. W&M and UVA are $35k+/year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
I know you don't want to hear it, OP, but 7.54% interest in this economy is just not intelligent. You don't get a house at the end. Your kid gets a diploma whose worth is limited to what he's going to do with it. Might as well go in-state.

Kindly, instate colleges are expensive too. I’m not sure why you’re assuming OP’s kid is going OOS or private. W&M and UVA are $35k+/year.

np.. this kinda gives it away .. "We did not plan to have to take out loans, but we think it will be worth it. "

If you planned for college, normally, you plan for at minimum in state. Seems like OP's situation is not in state.

[Anonymous]

OP, if you already decided to take out the loans, why do you need to know how much other people are taking out?

[Anonymous]

OP here -- our situation is unique, and we have considered all the pros and cons of parent loans.

Please do not comment about the wisdom of parent loans. Thank you!

[Anonymous]

Anonymous wrote:OP here -- our situation is unique, and we have considered all the pros and cons of parent loans.

Please do not comment about the wisdom of parent loans. Thank you!

Please refer to the other comments regarding interest rates & links to loan applications.


Discover student loan app, lowest fixed rate offered is 5.49% all the way up to 14.99%:
https://www.discover.com/student-loans/undergraduate.html

Parent Plus Loans should be the first thought though versus private if direct loans have been exhausted.

[Anonymous]

No ones situation is unique. If you want to, do it.

[Anonymous]

Anonymous wrote:OP here -- our situation is unique, and we have considered all the pros and cons of parent loans.

Please do not comment about the wisdom of parent loans. Thank you!

but if your mind is made up, why do you need to know the amount people are borrowing?

[Anonymous]

https://www.collegeavestudentloans.com/student-loans/undergraduate-student-loans/?utm_medium=cpc&utm_source=google&utm_campaign=casl_search_us_null_is_college+ave+core_brand_exact_null_prospecting_performance&utm_adgroup=College+Ave+Student+Loans+-+Core+-+Exact&utm_term=college%20ave%20student%20loans&utm_matchtype=e&utm_network=g&brand=college%20ave&goal=acquisition&sitelink=Undergraduate_Loans&&&gclid=EAIaIQobChMIoqOn2KzD_gIVgRCzAB2npQv-EAAYASABEgIPy_D_BwE&gclsrc=aw.ds

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here -- our situation is unique, and we have considered all the pros and cons of parent loans.

Please do not comment about the wisdom of parent loans. Thank you!

but if your mind is made up, why do you need to know the amount people are borrowing?

+1