A new report from the Texas Public Policy Foundation has revealed that parent student loans amount to 30 percent of student loan debt, with parents often borrowing tens of thousands of dollars for their child’s education. Here’s what you need to know.© Photo by Adobe Stock, Illustration by Bankrate Woman stands in a college library
1 current trend within student loans for the week of Sept. 20, 2021
1. New report highlights the cost of sending children to college with PLUS loans
A report by the Texas Public Policy Foundation shows that parents borrow a median of $23,415 in federal parent PLUS loans for their child’s education, with these loans accounting for roughly 30 percent of student loan debt in the U.S. The data aims to bring awareness to both policymakers and parents about the loans and what reforms can be made on a federal level.
Parent PLUS loans are federal student loans that are offered to parents of dependent undergraduate students. Parents can borrow up to the total cost of their child’s attendance, with fixed interest rates that currently sit at 6.28 percent.
Because parents can borrow up to the total cost of attendance, debt loads can easily climb much higher than the median. In addition to overall borrowing trends, the report lists median parent debt amounts for specific colleges and programs, many of which are over $100,000.
Gallery: 10 Ways To Minimize Your Student Loans (GOBankingRates)
Source : https://www.msn.com/en-us/money/personalfinance/new-data-highlights-the-impact-of-parent-plus-student-loans-and-other-current-student-loan-news-for-the-week-of-sept-20-2021/ar-AAOE4aP440