CRF Blog

Parents, too, could use a break on student loan debt

by Bill Hayes

In Parents, too, could use a break on student loan debt for the Los Angeles Times, Kerry Madden argues that students are not the only ones burdened with student-loan debts.

The master promissory notes we signed for our kids through the Department of Education Direct Loan Program made us responsible for 80% of the amount borrowed, while our children are each responsible for 20%. The Parent PLUS loans we were given came with an average interest rate of about 8% annually. The kids’ interest rate was 3%. All of the loans were dispersed through the Department of Education and are managed by Sallie Mae.

We have consolidated those loans into one automatic payment of $954.42 a month. Barring a miracle, Kiffen and I will make our last installment when we are nearing 75. By that time, with interest, we will have actually paid about $300,000 for our $120,000 in loans. [more]