Dear Liz: I co-signed some private student loans for my youngest child. She graduated two years ago with about $80,000 in student debt, including federal and private loans. Like many other recent graduates, she has had a difficult time finding a job.
How does student loan debt affect my child’s financial aid?
If you’re a parent with student loan debt, you may be wondering if this could affect your child’s financial aid eligibility. There are different types of financial aid available, and the majority of federal student aid is not contingent on student or parent credit history, including federal student loan debt the parents may have.
What to do if you can’t afford college for your child?
If you’ve exhausted all of your resources after your child has applied for grants and scholarships and you still don’t have enough for tuition, student loans might be the right option. In most cases, a student loan will be in the child’s name, so it’s important to talk about this responsibility with them.
Is it bad for parents to sign student loans?
Short answer: NO! Longer answer: “NOOOOOOOO!” Just kidding, my response was much kinder and and hopefully much more helpful than that. All jokes aside, I think that having your parents co-sign your loans (Parent Plus loans, private loans or otherwise) is a terrible idea.
What kind of loans can I get for college?
Undergraduates can obtain these loans to pay for a career school or college. Students must demonstrate financial need. Direct unsubsidized loans. These loans — also called unsubsidized Stafford loans — are available to undergraduates, graduate students and professional students.
How old is my student loan debt now?
I had to file bankruptcy once when I first left college to erase as many as I could but some were not old enough to be discharged..although included in the filing. So now I have the remainder and it accrues daily …I think its at approx 60grand!
Can a parent get a PLUS loan to pay for college?
Direct PLUS Loans are federal loans that parents of dependent undergraduate students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.
