Parent loans ‘fraught with peril’ as default rates hit 20, 30 percent at many colleges
From Newsweek: “One out of every four federal dollars lent for undergraduate education last year went to parents and a stunning 22 percent of that $1.6 trillion in outstanding student debt, $336 billion in all, is held by people 50 and older, who typically borrowed to help pay for a child’s or grandchild’s higher education. … According to the data, which covers nearly 1,000 colleges and universities that participated in the federal Parent PLUS loan program from 2017 to 2019, nearly one in 10 parents default or are seriously late with payments within just two years of their child leaving school. That parent default and delinquency rate hit 20 percent or more at over 150 schools and at least 30 to 40 percent at dozens of institutions…”
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