No Income? No Problem! How the Gov’t Is Saddling Parents with College Loans They Can’t Afford
A joint examination by ProPublica and The Chronicle of Higher Education has found that Plus loans can sometimes hurt the very families they are intended to help: The loans are both remarkably easy to get and nearly impossible to get out from under for families who’ve overreached. When a parent applies for a Plus loan, the government checks credit history, but it doesn’t assess whether the borrower has the ability to repay the loan. It doesn’t check income. It doesn’t check employment status.
It doesn’t check how much other debt — like a mortgage, or other student-loan debt — the borrower is already on the hook for.