woochicken President Joe Biden announced student loan debt Cancellations between $10,000 and $20,000 were celebrated not only by students, but also by many parents who took out loans to help with their children’s education, known as Parent Plus Loan,
According to The Century FoundationAbout $104 billion is owed to about 3.7 million households, which have an average 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 student loans that are federally funded and meant for parents to pay for their children for their higher education, and plus is an acronym that stands for parental loan for graduate students,
Direct Plus Loan as they are called by now education Department While those loans are non-subsidized, meaning that the parents have to pay interest on those loans, the fixed interest rate is actually 7.54% according to Bankrate, which is significantly higher than the regular student loan rates which are 4.99%.
Alexandria Ocasio-Cortez talks about Parent PLUS loans
Democrat Representative for New York, Alexandria Ocasio-Cortez This week it explained through its social media platform that parents who have borrowed money for their children’s education also benefit from it. President Joe Biden Student Loan Forgiveness Scheme.
Her words acknowledge that this isn’t just a millennial problem because Baby Boomers have more debt ($43,554) than the average Gen X ($41,910), according to Credit Karma.