| Parent college loans can work for you, if you can | | | | wonderful grades in high school. And of course, life |
| answer "yes" to these questions: | | | | just throws curves once in a while-- your child may |
| | | | meet the person of their dreams and give it all up for |
| 1. Does your child know what they want to major in? | | | | love (leaving you with the bills). So, this is where you |
| 2. Will employers care which school granted the | | | | measure their passionate commitment to their field |
| degree? | | | | of study. Is your child excited about the major |
| 3. Will your child stick it out to the end, no matter | | | | they've chosen? Or is it just something they fell into |
| what? | | | | because it comes easy to them? You should feel |
| 4. Do you have a concrete plan to make these | | | | confident, not apprehensive about taking out parent |
| additional payments? | | | | college loans. |
| One at a time: | | | | 4. The payments are not going to go away; the |
| | | | future is not going to take care of itself. You have |
| 1. The days are long past when students go to | | | | to do that. Before you say "yes" to the loan, you |
| university simply for the "college experience". | | | | need to come up with your own 'business plan' to |
| Guidance counselors used to ask students if they | | | | make those extra monthly payments (and not by |
| knew what they wanted to major in. When they | | | | squeezing it out of your current income). You |
| replied that they weren't sure, their counselors would | | | | shouldn't have to live like a student even if you are |
| say, "Oh, that's ok; you don't need to decide until | | | | taking out a 'student' loan. Whatever your plan is to |
| your junior year." Not anymore. Tuition is just too | | | | get the additional income, (starting an e business, |
| expensive. And parent college loans should be looked | | | | getting a part-time job, selling a house)don't count on |
| at as an investment in the future. Would you invest | | | | your child helping you with the payments. Your child is |
| in a company that didn't have a business plan? Its | | | | going to have their own loans to pay back. The |
| understandable if a student does not have a clear | | | | maximum amount for a Parent PLUS loan is the cost |
| idea about what they want to do, but if the money | | | | of school minus other aid (like the Stafford loans |
| isn't there, they should take some community college | | | | they'll be offered). |
| or public school courses to find out. | | | | The good news is that now (through 2010) you can |
| 2. In the spirit of looking at parent college loans as | | | | take out parent college loans and defer the |
| investments, the next thing you want to know is will | | | | payments until after the student graduates. That |
| it make a difference? Is a high-priced school going to | | | | gives you four years to secure that added income. |
| give the student a real, professional edge over other | | | | The bad news is that one parent loan won't be |
| graduates? If your child is going to major in computer | | | | enough; after all, college is four years. And while its |
| science or chemical engineering, it will. A top-notch | | | | true that the student's maximum loan amounts |
| engineering college will make an enormous difference | | | | increase every year, that simply allows other aid to |
| in career placement and salary. For a public service | | | | be decreased. Unless your expected family |
| profession like social work, a state university degree | | | | contribution is lowered because of unemployment or |
| will work just as well. Or, if an advanced degree will | | | | some other drastic change, the amount you take out |
| be needed, the high-priced school can still be in the | | | | the first year is what you're looking at for every |
| picture for graduate work. Undergraduate work can | | | | year. |
| be done at a lower-priced school without sacrificing | | | | So, are parent college loans right for you? Well |
| future prospects. | | | | whether they are or not, you'd better learn |
| 3. This is somewhat unpredictable. No one knows | | | | everything you can about them, because you'll |
| how a student will react to college life. It can be | | | | probably apply anyway. After all, everyone knows |
| overwhelming even for students who have | | | | that parents can't say "no" to their kids. |