Parent PLUS Loan repayment calculator - $68k over 4 years after maxing other aid?

I just went through this with my son's education. For Parent PLUS loans, you typically have 10-25 years to repay depending on which plan you choose. The standard plan is 10 years. For a $68K loan at the current rate (which is around 8.05% for 2023-2024), your monthly payment would be approximately $825 on the standard 10-year plan. However, there are extended repayment plans (up to 25 years) that would lower your monthly payment to around $475-550, but you'll pay significantly more in interest over time. The Graduate Repayment plan starts lower and increases over time. Keep in mind that Parent PLUS loan interest rates are set each July for the upcoming academic year, so each year's loan might have a different rate. The rate is fixed for that specific loan once disbursed though.

Using the Federal Student Aid loan simulator (studentaid.gov/loan-simulator/), a $68,000 Parent PLUS loan at current rates would indeed be about $825/month on the standard 10-year plan. But there are several other options: - Extended Fixed: $565/month for 25 years (total paid: ~$169,500) - Extended Graduated: starts at $477/month, increases over time, 25 years (total paid: ~$182,000) - Standard: $825/month for 10 years (total paid: ~$99,000) - Graduated: starts at $462/month, increases every 2 years, 10 years (total paid: ~$106,000) You can always pay extra without penalty on any plan. Also consider looking into Income-Contingent Repayment through a Direct Consolidation Loan after graduation - this might be beneficial depending on your income.

dont get parent plus!!! my sister's parents got them and they are STILL paying 14 yrs later!!! the interest is crazy and my sis feels horrible that her parents are still payign for her school. plus they couldn't retire when they wanted bc of the payments. srsly look at cheaper schools or gap year to save $$$

Have you looked into other options? My daughter got a part-time job on campus that pays $4K per semester, plus we found about $5K in outside scholarships the school financial aid office never mentioned. Between those two things we cut our Parent PLUS needs almost in half. Just a thought before you commit to the full $17K per year.

I've been trying to get through to someone at the Federal Student Aid office for DAYS about my Parent PLUS loan questions and kept getting disconnected. Finally someone told me about Claimyr.com and it actually worked! They got me connected to a real person at FSA in about 20 minutes instead of the hours I was spending on hold. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent I spoke with walked me through all the repayment options and even helped me calculate different scenarios based on my specific situation. WAY more helpful than the generic info I was finding online.

DO NOT TRUST THE CALCULATOR NUMBERS!!! The reality is so much worse. I borrowed $58,000 in Parent PLUS for my son, and even though I've been paying $650/month for SIX YEARS already, I still owe $51,000!!! The interest is CRIMINAL. The payment estimators DON'T show how much interest accrues during school or how the capitalization works. And now my daughter is starting college and I'm terrified about taking on more debt. The whole system is designed to TRAP parents!!

A couple of additional considerations about Parent PLUS loans: 1) Consider whether the total debt is reasonable relative to your income and retirement timeline. The rule of thumb is not to borrow more than your annual income. 2) Remember that unlike Direct Student Loans, Parent PLUS loans become YOUR responsibility entirely. Your daughter has no legal obligation to help with payments. 3) There are fewer forgiveness options for Parent PLUS loans, though some do exist through consolidation. 4) Interest begins accruing immediately after disbursement, even while your daughter is still in school. Making interest-only payments during the in-school period can save thousands in the long run. 5) You can apply for a different amount each year - if your financial situation improves or your daughter secures more scholarships, you can borrow less in subsequent years.

I went through almost exactly your situation! We needed about $15k/year for my son after all other aid. We ended up borrowing through Parent PLUS but took a multi-strategy approach: - He transferred AP credits to skip some gen-ed classes - Took summer classes at the community college for cheaper credits that transferred - He graduated a semester early by taking extra classes - We paid interest during school (about $120/month per year of loans) Ended up with about $52k total instead of $60k, and now our payment is $623/month on a 10-year plan. Still tough but manageable. Don't just accept the $17k/year as fixed - there are ways to reduce it!

Just wanted to add another perspective as someone who's been researching this extensively. One thing I haven't seen mentioned is that you can also look into state-specific loan programs that might have better terms than Parent PLUS. Some states offer parent loans with lower interest rates or more flexible repayment options. Also, if your daughter is considering graduate school later, you might want to factor that into your decision. Taking on $68k now could limit her (and your) ability to finance grad school if needed. Sometimes it's worth considering a less expensive undergraduate option to preserve borrowing capacity for a graduate degree that might have better ROI. And definitely look into employer tuition assistance programs - some companies offer tuition reimbursement not just for employees but for their dependents too. It's worth checking if either you or your spouse have this benefit available.

As someone who works in college financial planning, I want to emphasize a few key points that might help with your decision: First, definitely use the Federal Student Aid loan simulator that was mentioned earlier - it's the most accurate tool for calculating payments. But also consider running scenarios where you make different payment amounts to see how extra payments affect the timeline and total interest. Second, many families don't realize that Parent PLUS loans have NO borrowing limits beyond the cost of attendance. This can be both good and dangerous - good because you won't be denied for the amount you need, but dangerous because there's no built-in check on whether you're borrowing more than you can reasonably repay. Third, consider having an honest conversation with your daughter about the financial reality. Many students are willing to consider less expensive options when they understand the true burden on their parents. Sometimes they can take on additional part-time work, apply for more scholarships, or even consider starting at a community college for general education requirements. The $68k over four years is substantial, but it's not uncommon. The key is making sure it fits within your overall financial picture and retirement planning. Don't let the stress of the decision rush you into borrowing more than makes sense for your family's long-term financial health.

I'm in a similar boat with my twins starting college next year - the Parent PLUS loan numbers are overwhelming! One thing that's helped me is creating a spreadsheet to compare the total cost of different scenarios. I found that even small changes can make a big difference over 4 years. For example, if your daughter could work 15 hours/week during the school year at $12/hour, that's about $4,500 per year she could contribute directly to costs. Combined with a summer job earning $3,000, you're looking at reducing that $17k annual need to about $9,500. That cuts your total Parent PLUS borrowing from $68k to around $38k - which would be about $460/month on the 10-year plan instead of $825. Also, don't overlook the American Opportunity Tax Credit - you can get up to $2,500 back on your taxes each year she's in school, which effectively reduces your out-of-pocket costs. Every little bit helps when you're looking at these big numbers!