That’s actually not too bad! Lol. A lot of parents take out $300,000 for ONE kid in medical school. 
Medical students can take out the loans in their own name – so I’m rather baffled as to why a parent would take out PLUS loans for a med student. I think the loan terms, including options for deferment or income-based repayment during residency (as well as long term loan forgiveness options) – would be more favorable if the loans are taken by the student rather than parents.
But perhaps the guy at the dealership meant that he had taken out that much for undergrad for the kids who had gone on to med school?
@prouddad2020 very impressive!
We applied o a mix of out instate and OOS schools with several “reach schools” in the mix. Kiddo is not a stellar atudent (major illness at the start of high school) but he always took AP classes, engineering track, etc. So we got acceptance to 4 instate schools, 3 with merrit scholarships, one we dont know because he was pushed to spring 2020 start and its not on our decision list. He also got into out of state York, UCF and Rutgers. Word still out on Virginia tech but it is not likely. We looked at Rutgers, LOVED it bit it is not feasable finanancially unless I use all savings and borrow on top of that. I am an older single parent and my kiddo said $55G + per year is out of the question. He decided on a good in state school. I am the one who feels sad and down because I cannot give him what I feel as a parent is best school for him even though intellectually I know he is right and getting into huge debt is not a good strategy for the future, both his and mine
Did you apply for financial aid (besides merit)? You might be able to afford more than you think.
Yes we applied. He does not qualify because I spent last 42 years in this country being responsible, makig sure I am not a burden when I get older. Though that is what I waa supposed to do. Silly me.
@Allecto, those of us who qualified for need-based aid also have spent our lives being responsible, working hard, and trying to save for retirement. But we have had challenges in life that perhaps you didn’t face. Maybe jobs that are tough and demanding but don’t pay as much, or costly life events like divorce, prolonged illness, layoffs, or the need to fill a caretaking function.
And some of us also are the parents of kids who spent at least 4 years of high school being super-responsible, so that they ended up with the GPA and class standing or other accomplishments (such as athlete-scholars) that opened the door to generous scholarships or to admission to schools with particularly generous financial aid policies.
And some of the parents who don’t need to rely on financial aid or loans to put their kids through college also have demonstrated responsibility by starting early to create a college nest egg, putting money into ESA’s for their kids as well as retirement accounts.
Whatever money you have put away in past years into a sheltered retirement account (IRA, Keogh, etc.) is not being counted or considered for financial aid eligibility.
You are very fortunate that your son has affordable in-state options. It sounds like the coveting of an unaffordable, out-of-state public is your fantasy – not your son’s – so it is also fortunate that your son has the intelligence and willingness to go pursue the opportunities he has, rather than to entertain feelings of despair or bitterness over what he might wish to have instead.
Your son has made a good choice. You live in a state with good public options and should be thankful for that. If you are feeling sad and down then you might want to see a therapist – because those are your emotions based on a fantasy, not reality. (You cannot “give” your adult child a better experience by paying for a school that seems better on paper – because your son’s life and choices are outside of your control. Students often experience setbacks and run into problems when attending their so-called dream schools; and students who are initially disappointed when their choices are constrained by finances very often find that they have opportunities far beyond what they imagined at whatever school they do end up at.)
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Thank you for the free therapy. Wanting more for your kid is not a crime. Thats being human and it does not make parents who want the best for their kids bad people. That I am feeling a financial “shock” should not be surprising. Any sane person who knows how to use a calculator should be shocked by cost of attending college and financial cosequences to kids and their families that can last a lifetime.
That state of Maryland has options - its because we the taxpayers and voters of Maryland pay into the system and elect officials who are for the most part act responcibly when it comes to taxpayers money.
Bigger name schools can open doors for kids whose families do not have connections. We don’t. Those schools often have facities smaller schools may not have. Some majors are very hands on and facilties school has do matter. So it is a very difficult decision that no kid who just turned 18 should make without input from the family. Since I am financially responcible for paying for his education for the next 4-5years 18 or not its a family decision. We are going to tour the in state school again because I want him to be absolutetely sure that a more affordable option will meet all of his educational needs and is not chosen solely because it is affordable or because he was offered scholarship that will offset some of the cost.
Wanting more for your kid is fine. Implying that families who qualify for financial aid weren’t being responsible is not.
Sounds like your student is going to pursue engineering? If so, as long as he’s at an ABET accredited program, he’s going to be just fine. Debt isn’t worth it, especially for engineering. The curriculums are so very similar!
I hope you can get rid of your guilt @allecto. You obviously raised a great kid, who overcame a major illness, and still succeeded and earned merit scholarships. You are still getting him through college. Celebrate the success! You both did great!!!
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My original post was about my situation and sarcasm was about me. If someone is feeling defensive because they need to accept assistance that is their issue, just as wanting ànd not being able to afford a better known school for my kid is mine. I cannot help it if someone got triggered because they read something into what I said about my situation and decided it was about them. Again as was implied by another poster 1Life happens (for other people since she knows nothing about mine) but 2. I should have been more responcible by putting money away in college accounts, 3. my kid should have been more responcible in school. 4. I am nuts and I need therapy to deal with the guit and all of the above. I am not offended (except for therapy part) But the financial boat has sailed so we will deal. Without therapy (which is very expensive ?.
@Allecto — I’m sorry that you were offended by my suggestion to apply for financial aid, and surprised that you equate making more money than others with being responsible. Our family does qualify but I feel no shame for it. I have also put money away into college savings accounts and have been proud that I have been able to contribute as much as I have. My worries, while sometimes financial, have focused more on whether my children will be happy with their chosen career paths. But decisions like your son is making and like my D is considering show what wonderful and independent adults they are becoming. I just have to get used to letting go.
Given the title of this thread, I think the focus is meant to be on providing practical support and information concerning PLUS loans, for parents who are considering or planning to use such loans to help finance college. The initial article that was linked in the original post 6 years ago warned of the risks of parents’ overextending themselves with such loans. But over the course of time here, there has been discussion of pros and cons of borrowing, as well as some practical tips along the way – and this pops up in my feed when new posts are made because I have tried to offer helpful suggestions in the past.
There is a place for a limited and responsible level of borrowing as part of college financing. I would not have been able to finance my daughter’s 4 years of college without some sort of loans, and for me PLUS loans were the most viable option. I was able to do the math to figure out what I could pay out of pocket, and what additional monthly payment I could manage to bridge the gap.
I am not sure why any parent who has already decided not to borrow would be posting here. There are plenty of other places on CC if the goal is to simply gripe about being unable to afford their top choice college.
This article may not be relevant or interesting to someone who already dealt with these loans and made decisions that work for them. It is very relevant to someone like me, whose child will be starting college and decisions still need to be made. Its what boards like this one are for: learning about options
I already made it very clear that my post related to ME . I never made any statements about being offended regarding suggestion to apply for financial aid nor did I ever state that I equate making more money is “being responcible”. Either you trully dont understand what I said or you deliberately misstate what I said . I’ve seen this “technique” used before. In any case we are done
Sarcasm is very hard to come across in written communication. Post #305.
It could be, but just as with face to face communication interpretation is usually based on individual reader’s personality history, understanding , interpretive style and previous exposure to sarcasm.
@Allecto, you said “He does not qualify because I spent last 42 years in this country being responsible, makig sure I am not a burden when I get older.“—that is where I got the idea that your not qualifying for financial aid meant that you thought you were more responsible than those who do. I don’t see that as sarcasm. But perhaps I truly don’t understand what you meant.
On the other hand, I understand the sentiment of not wanting to be a burden (to either one’s children or one’s parents). It’s certainly why, when we work so hard to try to afford our kids’ educations, it can be so difficult to come up short.
" I spent last 42 years in this country being responsible, making sure I am not a burden when I get older. " - That sentence confused me too. Financial aid EFC formula is based mainly on earnings, less so on savings. (And when we applied years ago, 401K savings were exempt. Not sure if still the case.) Nonetheless, the EFC is typically shockingly higher than any parent expects.
Now back to PLUS loans.
I think it’s great this thread has been running for many years. It’s easy to get excited about college acceptances and be overly tempted to take out too many loans. This thread helps newer parents read experiences others that have had to make tough decisions.
When approved for the parent plus loan and student decides on another school (no mpn signed yet), do we need to apply again for the loan or will the loan switch to the new school? Don’t want a lot of hard inquiries on credit file.
Now that you know you will be approved, wait until you decide on a school to apply again. I don’t think the application transfers, but one more hard inquiry won’t hurt. You don’t need to apply until June or July.