I have a client that applied for an Offer in Compromise with the IRS. The IRS reviewed her expenses and disallowed the payment of Parent Plus loans from their calculation of her monthly expenses because the loans were taken out for her son to attend a 4 year accredited university. The loans are in her name and not her children’s name. I think it is unfair for them to disallow the expense since it seems like if the student can’t borrow enough to pay the cost of tuition, the university’s financial aid office calculates and expects the parent to borrow the rest.
The Singing CPAof NY6:37AM October 27, 2012
They are a horrible reocurring nightmare. It is all a government conspiracy; they brainwash you and your children into getting into college no matter what! aim for the stars at whatever cost! They get you and your children in debt for the rest of your life...recent college grads cant get good paying jobs or a job at all. It is a vicious circle.
USA pushes us into debt to keep the economy moving...the rich get richer and the poor gets poorer regardless of whether you have a college education or not. Banks and the government are the only ones who benefit from our and our childrens debt.
I cant get out of the parent plus loans even if I file bankrupcy; yet any multimillion dollar corporation can walk away from "bad business" without having to pay a cent. (well ok so other than their attorneys fees...which is a fraction of what they get to keep in their pockets).
Yep they file bankrupcy, keep their money, and even qualify for new business ventures....and who pays for all that???? us! the taxpayers....
Average Janeof IL3:25PM September 17, 2012
The worst thing the plus loan does is it charges you a lot of money and gives you half of what you need. A lot of people go for the plus loan because you've been denied elsewhere.
What the plus loan should do is accept ALL applicants -- or, instead of just giving $4,000 in Stafford loans they should consider giving $6,000 in Stafford loans.
joeshmoof NH4:20PM August 16, 2011
First, you pay 4% up front, then 8% interest for the entire time you have the loan unpaid, so if you wait for the end of 4 years, you have a much bigger pile of cash. And where does the interest go? I'm assuming to pay for Obama's golf outings and his creation of big government, and probably to forge his identity papers so he can rule the world. I won't be bending over for this loan.
Bobof TX4:13PM August 05, 2011
PLUS loans are a bad deal. Many banks offer loans with less interest, or even a line of credit against the house. Don't borrow money for your kid's education if you can help it.
NeedyCollegeStudents.com
Chrissy Cof AZ6:14PM November 08, 2010
If a single parent takes out a Parent Plus Loan for their child, does this in anyway affect your credit as far as being overextended on your credit?
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The Singing CPA of NY 6:37AM October 27, 2012
Average Jane of IL 3:25PM September 17, 2012
joeshmo of NH 4:20PM August 16, 2011
Bob of TX 4:13PM August 05, 2011
Chrissy C of AZ 6:14PM November 08, 2010
Cindy of PA 11:06AM November 08, 2010