PLUS loan experiences?

Parents Forum
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<p>Greetings parents, I'm here to research your opinions and experiences on PLUS loans.</p>

<p>I'm currently in my sophomore year at my local community college (free ride!) planning to transfer either Winter or Spring 07. I've been working 65 hours a week since October (with a full courseload) in an effort to try to not take out loans for school, but recently found that working that much is not beneficial to my health, social life, or academic life. I really want to be able to see my friends at least once a month, and I'd also really like to volunteer with local charity orgs and city gov'ts) Plus, I could never forgive myself if I missed out on "the college experience". I still kick myself for not having any sort of high school experiences to reflect back on.</p>

<p>Anyways, our financial situation is really, really bad. My mother and stepfather are still paying off their starter house (mom just turned 50), paying off 2 new cars (I urged them to buy pre-owned and save thousands, but they don't respond to the voice of reason), and neither can contribute a cent. Plus, my father has his son to worry about (he'll be moving down here to goto school and live with us this summer after graduating HS...I have no idea where he's going to sleep, I'm already sleeping in what should technically be an oversized walk-in closet). My stepfather is always borrowing money from his credit cards, and they're sometimes borrowing the thousands that I've saved working my ass off. The worst part - my EFC is 10k!</p>

<p>As such, my parents and I (well, my mother at least) plan on taking out massive amounts of loans in order for me to get through at least my undergrad studies. We're still too far away from having to discuss funding my JD and MBA.</p>

<p>My mother just got over a 7 or 8 year old bankruptcy ruling, so her credit isn't still completely non-existant, but it's still bad. "Average" or "above average" by nationwide standards.</p>

<p>I'm very ambitious and planning on double majoring (with a minor) at my undergrad school. Problem is, I don't see Stafford loans being able to fund even half of that. I'm relying on my mother's PLUS loans to fulfill most of the obligation, but after I heard they were based on credit ratings, I felt like I was on a slowly sinking ship.</p>

<p>To summarize: Mom has one home loan, one car loan (the other car doesn't have her name on the loan), and an income that was below what I was making in my 65-hour work weeks (she works nearly double what I do). Any chance of her getting a PLUS loan in any decent amount?</p>

<p>And to cut out some replys, yes, I've researched other options. Dad already owes us 20k in child support but due to "chronic medical problems" we wouldn't even be able to collect a cent if we had the support order enforced. I'm not willing to join the military. And of course I am not returning to 65 hour workweeks (I was able to salvage a 3.3 GPA from fall due to this, but this winter quarter might be leaning on a 3.0). I am willing to get married (to a girl in a position like mine, not for love but for independent status on the FAFSA) in order to qualify for independent status, but that's kind of a last resort. And it doesn't look like I'll qualify for need-based or merit-based aid. I'm on a fast-moving track, and I'm not sure if I'd be able to recover from a stint with AmeriCorps, Peace Corps, or the military. I'm also cut-out from most minority scholarships except for the ones specifically geared towards asians (I hate that so much), but even in those cases I'm up against hundreds of other, more better asians that I stand no chance).</p>

<p>Thanks all!</p>

<p>Edit: Oops, I guess that was a lot of background information just to ask about PLUS loans, but I guess I can always link back here from other forums/threads if I ever have to explain my situation again.</p>

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<p>I do not know the creditworthiness standards for plus loans but I do know that if mom is denied you get to take out another $4K in unsub Staffords. That will help some. Check out the rules, remember the Stafford goes up every year. For a student with non credit qualifying parent , it will be a decent amount for junior and senior years, and even more for grad school.</p>

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<p>If you google PLUS loans you will see that you'll need to get a credit report from the 3 major credit reporting agencies to make sure that all the reporting is correct. Bankruptcy must be discharged for 5 years however the reporting usually is a mess, generally incorrect and must be rectified to get approved. Many creditors will show up on a credit report as though they were not discharged in bankruptcy and must be corrected--this could take either weeks or months. There are laws available to consumers regarding their credit reporting but there are many creditors and collection agencies who delight in trashing a non paying debtor.</p>

<p>Contrary to what you think, a bankruptcy is not a barrier to getting approved. Current late payments must be rectified however.</p>

<p>Plus loans are generally obtained with (I think) a 10 year amortization but can be consolidated to a 30 year amortization with various payment schedules depending on circumstances, making it manageable. Consolidation does not require a credit report only that the loans are in payment. They are not dischargable in bankruptcy without a major reason for doing so. They are forgiven with death or major disability. Should a job loss occur, deferment of payment is available. All in all, Plus loans are a major assist in paying for college.</p>

<p>Good luck and never give up.</p>

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<p>One more thing--Plus loan amounts are determined by the estimated costs of attending the school. Talk to the financial aid office who--hopefully--can give you more info. Be prepared to do some homework as sometimes they are not the most knowledeable.</p>