Get Tips for Parents Who Borrow University Loans | Pay for college
For most families, pay for college involves a combination of savings, income, financial aid and – in some cases – ready.
Once students hit the federal borrowing limit, parents often have to consider whether they should take out loans to help finance their children. college education.
The Sallie Mae 2017 report on “How America Pays for College”found that 14 percent of families surveyed relied on parents borrowing to cover school fees. According to the survey, most parents borrow Parent PLUS loans versus private educational loans. Among parents with a PLUS loan, the average amount borrowed was $ 10,226.
But federal PLUS loans are just one way to borrow for college. There are also options to finance higher education through home equity loans, retirement accounts, or federal or private loans borrowed by the student.
To help parents navigate their borrowing choices, US News spoke with Shannon Vasconcelos, director of college finance at College Coach; and Pete Wylie, vice president of student loans , a marketplace lender for about education loans.
Watch the video to find out when a parent should co-sign a private loan, take out a Parent PLUS loan, or borrow money from a private lender.
Are you trying to finance your studies? Get tips and more in the U.S. news Pay for college center.