Florida

Putting Education Reform To The Test

Federal College Loan Program Trapping Parents in Debt

Parents who borrow money to pay for their child’s college are finding themselves buried in debt thanks to a federal loan program. The program does little to verify whether parents earn enough to repay the loan, and bankruptcy provides no shelter from the financial burden.


A joint examination by ProPublica and The Chronicle of Higher Education has found that Plus loans can sometimes hurt the very families they are intended to help: The loans are both remarkably easy to get and nearly impossible to get out from under for families who’ve overreached. When a parent applies for a Plus loan, the government checks credit history, but it doesn’t assess whether the borrower has the ability to repay the loan. It doesn’t check income. It doesn’t check employment status. It doesn’t check how much other debt — like a mortgage, or other student-loan debt — the borrower is already on the hook for.

Read more at: www.propublica.org

About StateImpact

StateImpact seeks to inform and engage local communities with broadcast and online news focused on how state government decisions affect your lives.
Learn More »

Economy
Education