<p>If a family has a good income and a squeaky clean credit report, is there an actual limit to how much can be borrowed with a Parent Plus loan? </p>
<p>Is it possible to borrow upwards of $175,000-$200,000 for 4-5 years? </p>
<p>I am not asking for me, honest! I could never support that debt service. </p>
<p>Everything I have learned about a PP loan says that they are not income dependent, but I've never seen anyone considering borrowing this much.</p>
<p>LOL, if you can support that debt load you probably don’t need to take out a Parent Plus loan at the interest rate!</p>
<p>You cannot borrow more than the COA each year. You would have to requalify each year.</p>
<p>The person I am asking this for would be borrowing about $40,000 a year for five years. If your credit report remains clean, can you continue to borrow such huge numbers? My understanding of the PP loan is that it is not income dependent and your debt-to-income ratio is a not a factor.</p>
<p>The borrower will be coming into a significant amount of money at the end of this time period and anticipates paying the whole thing off at that time.</p>
<p>Because the debt can’t be discharged in bankruptcy, the terms to qualify are light. As long as someone has good credit, they qualify. I know this is crazy and really should be changed, it’s the situation. Sadly, easy qualifying has led to many low/lowish income families from signing mega-loans for their kids with the crazy hope that their college educated child will make huge bucks upon graduation and make the payments for them. :(</p>
<p>Yes, it is crazy. That means someone like me could take out a million in loans as I have 5 kids. You do the math for COA of a private school for each.</p>
<p>I agree, it’s crazy!</p>
<p>But on the other hand, whatever works.</p>
<p>And can they make the payments? Unlike student loans, repayment isn’t deferred until graduation.</p>
<p>Yes, they can make the payments.</p>
<p>PLUS payments can be deferred until 6 months after the student graduates, but the interest is accruing from the instant the funds are given to the college.</p>