<p>hi everyone. I really want to find some answers about PLUS loans. Obviously, I'm aware that it's a parent loan, but I really don't want to burden my mom much with a loan. Anyways, I'm pretty sure that we will have to take out PLUS loan for my education, but my mom and I are both new to this whole college process/financial aid thing. </p>
<p>How much is PLUS loan exactly? We already applied for a PLUS loan from somewhere a few months back. As an example, say we borrowed 40k. Does it mean we're taking out 40k/year PLUS loans OR does it mean we're taking out 40k and will be equally divided all 4 years (that'll be 10k/year)? I'm really confused.</p>
<p>I got accepted to 7 colleges already and one of my safeties are currently giving me "full ride" in terms of grants, loans, work study and scholarship. My top choice would be a 40k/year and I'm guessing they will gap me 20k. Let's say I use PLUS loan to cover the gap finances all four years (that's 80k in parent loan). my mom makes ~27,000/year. Is it realistic to borrow that much? If not, based on my mom's income what would be a plausible amount of debt for my mom to take in after I graduate?</p>
<p>Drew, the PLUS loan is for each year -- your mom can borrow up to the full amount of your cost of attendance, after subtracting out whatever other financial aid you have (grants, work-study, student loans) -- in other words, whatever you need. If you needed $20K, then that's what your mom could borrow. </p>
<p>However, on a $27K annual income, no amount of debt is reasonable -- I am sure with your mom's income, most of the money is gone every month just to pay for housing costs and living expenses. If she borrowed $20K with a PLUS loan, she would have monthly loan payments of almost $250 ... maybe she could just manage that, but how is she going to manage $500/month in the second year.</p>
<p>With that income, unless your mom has other assets (like a big inheritance), you should have a 0 EFC -- and you simply won't be able to attend your top choice if the gap is so large. I would say that you should wait until you see the award -- you might be surprised and find they are more generous than expected -- but if not, you should consider yourself very lucky that you have the option of a full ride at a safety school. </p>
<p>I know that it's tough to give up on something you really want and worked hard for, but you don't want to destroy your own mother's life in the process of getting your education -- it just isn't feasible for her to take on that sort of debt.</p>