Recommendations to Rein in Parent Borrowing for College
"It's not just students who are borrowing massive amounts to attend college. Easy access to loans is putting more parents in debt — and financial aid professionals are concerned. A new report from the National Association of Student Financial Aid Administrators suggests steps should be taken to limit parental over borrowing," Education Week's College Bound blog reports. "Now, both parents and graduate students are lumped into one PLUS loan program, and NASFAA suggests they be separated. Loans are given to borrowers with "no adverse" credit history, and loans are limited only by the unmet cost of attendance, which can be tens of thousands of dollars. Some parents accumulate PLUS loan debt over several years that far exceeds their ability to repay, the report notes."
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