<p>$130,000 Parent Plus loan is roughly $1600/month repayment, at today’s rates (which are apparently threatening to go up.) For the PP loan, while he’s in college, the borrower makes the monthly payments, the term is 10 years. At first, it’s pay as you go- $400/mo to cover the 1st year loan. When the soph loan kicks in, goes up to $800, etc. Doable?</p>
<p>Let’s say he agrees to pay your loan once he graduates. He gets a $48k job (unlikely, but neatly divisible by 12.) He would net about $3k/month, after taxes, minus any health insurance costs, etc. He’d have to pay that 1600 for 6 years before it starts to decrease (as each indiidual year’s loan gets paid off.) He’ll hate his life. Kids should “live” in their 20’s, before setting down to family and mortgage, etc. Some kids want grad school. Emergencies happen.</p>
<p>Even if your numbers run slightly different, say he gets Staffords, so the PP totals are a bit lower, it’s still simple math and horrendous.</p>