This week Fred Amrein was quoted in the Time Magazine Money article title “Avoid the Parent Trap: Why a Plus Loan Isn’t the Best Way to Pay for College” written by Kerri Renzulli. The author discusses alternatives to Parent PLUS Loans for college.
Tuition bills are coming shortly and many of you are still trying to determine the best strategy for paying for the tuition. Parents may use a Parent Plus Loan, home equity or a line of credit to pay their child’s tuition. If loans are needed to pay tuition over any part of the four years , we normally recommend that the student should first take out the full amount they can in the federal student loan each year. Student loans have better interest rates and repayment options than parent loans. The student loans are also the legal responsible of the student. At College Affordability, we believe as much planning should be given to the payment strategy of college as the admission process. Remember this is a four year investment in your child’s future and can involve many years of repayment.