The Parent Trap: PLUS Loans and Intergenerational Borrowing
Rachel Fishman
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This blog post is the conclusion of a series that takes a look at recent changes to the credit criteria for Parent PLUS loans and the subsequent effect on colleges and universities. You can find the rest of the series here.
In fall 2011, the U.S. Department of Education tightened the credit check criteria for Parent PLUS loans, a federal program that provides loans to parents–usually above and beyond student loans–to send their children to college. Despite public criticism of the Department’s actions, I argue in The Parent Trap, released today, that more reforms are needed to ensure that the program doesn’t burden parent borrowers with debt they can’t afford to pay back.
Over the past year, I have heard repeatedly from institutions that the changes to the PLUS loan credit check have prohibited college access for many disadvantaged students. And while the anecdotes have been numerous, they often do a better job at highlighting the problems of parent borrowers who don’t have the resources to repay than making the case to revert back to the old credit standards.
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During a recent Education Department hearing, for example, Catherine Hurd of Johnson C. Smith University publicly criticized the Department’s changes to the PLUS loan credit criteria. She described many students who could no longer enroll in the university without PLUS loans since they didn’t have enough money upfront to cover their costs. One story she shared was of a homeless parent who was denied a PLUS loan. She agreed to send her weekly paycheck to Johnson C. Smith until the balance was paid, and that she would continue to remain homeless until she could get her feet back on the ground, Hurd explained. Continuar leyendo: “The Parent Trap: PLUS Loans and Intergenerational Borrowing” →
Publicado el 23/3/2022 Categoría Oklahoma_Coweta payday loans.
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