New Study Shows Increasing Use of PLUS Loans, With Some Borrows Experiencing Repayment Difficulties
Inside Higher Education is reporting on a recent study (conducted by Trellis Research) regarding undergraduate PLUS loans, which are federal loans provided to parents to help their children to pay for college. From Inside Higher Education: "Roughly 3.6 million parents had taken out $96 billion in outstanding loans under the federal Parent PLUS program as of late last year, the study from Trellis Research said. Parent PLUS loans now account for about a quarter of total federal lending for undergraduates, a share that grew from 14 percent in 2012-13. An increasing portion of parents also are struggling to pay off these loans. For example, the five-year default rate grew to 11 percent for parents who took out PLUS loans in 2009, up from 7 percent for the 1999 cohort, research has shown."
Read the full report from Trellis Research here.