quote:
The loans are in my name and are Federal loans (NELNET). My 401k is well funded. I’m just trying to be a good parent and pay off her student loan. She is graduating with a 4.0 for all four years of school. I’m 56 years old about to be 57 so I’m trying to reduce my debt so I can retire and me and my wife can enjoy life. If that’s being a bad parent then I don’t need your silly arse comments.

Generally speaking, people only move into PLUS loans once they've exhausted eligibility for the objectively better direct student loans. Does she also have separate loans on top of this, or did you guys take out PLUS loans as a loan of first resort and this is all there is?

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Posted by anc

Member since Nov 2012

18137 posts

Posted on 4/23/24 at 2:14 pm to Joshjrn

quote:
Generally speaking, people only move into PLUS loans once they've exhausted eligibility for the objectively better direct student loans. Does she also have separate loans on top of this, or did you guys take out PLUS loans as a loan of first resort and this is all there is?

Generally speaking, yes. But many families have too high of an EFC to qualify for traditional student loans. Parents qualify for the PLUS loan program, which is not a true student loan, it's a loan to the parents. Ive seen parents take out PLUS loans for the hell of it.

PLUS Loans are fixed rate, so the 8% is there for the life of the loan. OP just needs to figure out what he wants to do. I'm not a fan of liquidating aa 401k for any reason, though.

There is a loophole that is closing this year that would allow you to access the SAVE plan.

LINK

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