With federal Parent PLUS loans now accounting for one fourth of borrowing for undergraduates, brand new data reinforce concern about moms and dads’ power to repay the loans.

With federal Parent PLUS loans now accounting for one fourth of borrowing for undergraduates, brand new data reinforce concern about moms and dads’ power to repay the loans.

New research contributes to growing issues in regards to a federal system that enables moms and dads to obtain loans to aid fund their children’s undergraduate training.

Approximately 3.6 million moms and dads had removed $96 billion in outstanding loans underneath the federal Parent PLUS system at the time of late a year ago, the research from Trellis analysis said. Parent PLUS loans now account fully for about one fourth of total lending that is federal undergraduates, a share that expanded from 14 per cent in 2012-13.

A growing part of moms and dads are also struggling to cover these loans off. Read more