Ochicken President Joe Biden announced the student loan debt cancellation between $10,000 and $20,000 Not only the students celebrated, but also many parents who had taken out loans to help with their children’s education, known as Parent PLUS Loans.
According The Foundation of the Century$104 billion is owed by about 3.7 million families who have a median debt of about $29,600 and will now be eligible to cancel up to $20,000 of their debt.
What are Parent PLUS Loans?
Parent PLUS Loans are federally funded student loans for parents to help their children pay for college, and MORE is an acronym meaning Parent loans for undergraduate students.
Direct Loans PLUS as they are now called by the Department of Education are not subsidized, meaning parents have to pay interest on these loans, with the fixed interest rate actually amounting to 7.54% according to Bankrate, significantly higher than regular student loan rates which are s amount to 4.99%.
Alexandria Ocasio-Cortez talked about Parent PLUS Loans
The Democratic Representative for New York, Alexandria Ocasio-Cortez explained this week through his social media platforms that parents who have borrowed money for their children’s education also benefit from of President Joe Biden student loan cancellation plan.
His words acknowledge that this isn’t just a millennial problem, as baby boomers on average have more debt ($43,554) than Gen Xers ($41,910) according to Credit Karma.