And even though the federal government inserted itself into most student loans back in the late 2000s and early 2010s, there are still a number of different programs around with different payment schedules, forgiveness requirements, and eligibility options.
A Parent PLUS loan is a loan taken out by a parent (grandparents cannot do it, even if they are the legal guardian, unless they formally adopt the kid) for their child’s education. It is a federal loan but not a direct loan.
I don’t really like Parent PLUS Loans. I don’t even like the idea of a parent loan at all. I think if anyone is going to borrow for a student’s education, it should be the student.
Now, with all that background information, let’s see if there is a scenario where a few people could take advantage of a loophole. Imagine you have a parent with a very low income who is already quite elderly.