Boston Student Loan Lawyer

Law Office of Adam S. Minsky

  • Home
  • Services
  • About
  • Publications & Press
  • Testimonials
  • Speaking & Trainings
  • Contact
  • Blog

The Exploding Parent Loan Crisis

October 9, 2012 | Adam S. Minsky, Esq. Cosigners

Share the post "The Exploding Parent Loan Crisis"

  • Facebook
  • Twitter

The impact of burdensome student loan debt is not just felt by students. As I’ve written about recently, it is also felt by co-signers who are often relatives, spouses, or close friends of student borrowers. Perhaps the most burdened people, aside from students themselves, are parents.

Parent PLUS loans are federal student loans that are available to parents to pay for their child’s education. The parent, not the student, is the borrower, and the parent is solely responsible for the loan’s repayment. These loans are fairly easy to obtain, but we’re now seeing some negative consequences of these loans, largely for three reasons. First, these loans often have significantly higher interest rates than non-Parent federal loans. Second, Parent PLUS loans are completely ineligible for arguably the most favorable federal loan repayment plan, Income-Based Repayment. Third, parents often experience declining income as they near or enter retirement, making it even more difficult to repay these loans.

Last year, over $10.6 billion in Parent PLUS loans were lent to almost a million families. The numbers are just staggering. What this means is that we’re seeing an explosion of crippling student loan debt that is actually impacting parents of students, not just the students themselves. Suddenly retirement may no longer be a viable option for baby boomers who were just hoping to lend a helping hand to their children so they could get ahead in life. And of course, just like with any federal loan, if the parent ever defaults on this loan they are subject to theextraordinary collection powers of the federal government. This includes, frighteningly, the potential offset of critical social security income.

To read more about the growing Parent PLUS loan crisis, click here.

Share the post "The Exploding Parent Loan Crisis"

  • Facebook
  • Twitter

Cosigners

About Adam S. Minsky, Esq.

Adam S. Minsky founded the first law office in Massachusetts devoted entirely to assisting student loan borrowers, and he is one of the only attorneys in the country practicing in this area of law. He provides counsel, legal assistance, and direct advocacy for borrowers on a variety of student loan-related matters. He regularly speaks to students, graduates, and advocates about the latest developments in higher education financing.

Books by Adam S. Minsky

The Student Loan Handbook for Law Students and Attorneys

The Student Loan Handbook for Law Students and Attorneys

Student Loan Debt 101

Student Loan Debt 101: The Definitive Guide to Understanding and Managing Your Student Loans

Student Loans for Parents and Cosigners

The Student Loan Guide for Parents and Cosigners

617-936-2788
asminsky@minsky-law.com
By Appointment Only 265 Franklin Street, Suite 1702
Boston, MA 02110

Copyright © 2023 Adam S. Minsky · DISCLAIMER: This website may be considered advertising under Massachusetts Supreme Judicial Court Rules. The content of this website is for informational purposes and should not be considered legal advice. This web page does not establish an attorney-client relationship. Terms of Use

Copyright © 2023 · MinskyLaw on Genesis Framework · WordPress · Log in