Paying Off Parent Plus Student Loans

If you have a teen going into University and a bunch of kids down the lien going into school then you will probably want to know about the Parent Plus Student Loanda.

A Parent Plus Student Loan is a kind of federal student loan that is taken out by a parent on behalf of a child. These loans are never transferred to the student's names after they graduate. As the mom or dad you are always responsible for them.

This means that the student has absolutely no obligation to pay this loan, which kind of takes the pressure off the kid. But not off me. The parent loan is the easiest type of loan to get because of this. Thankfully student loan consolidation and refinancing measures are available for this type of parent-sponsored loan after you have had one out for a few years.

These loans can be gotten easily and very cheaply at low interest rates. However there is a hitch. There is no grace period of three months or so after the student graduates. Payments on these types of loans start immediately. You need to be ready with the money. However the sooner you pay it off the easier it will be for you in the long run. The sooner your kid gets a job after graduation the sooner you will be able to get payments from him and her as well.

Just as an aside it is also important to know that this type of Parent Plus student loan can never be a joint loan that is arranged between one parent and another. It can only be taken out by one parent – either the mom or dad. Two people cannot be responsible for it and only one name can be on the signed form. This is true even if the parents have been married for forty years.

Also these loans require a bit of paperwork. You have to take out one for each school year. So this means that the one parent will apply for the school loan four years in a row. This loan is typically acquired in the summer and half of the student loan is released out of an escrow type fund to the student in the fall and the other half in the spring.

I have the secret to cutting the interest on these student loans. You can immediately refinance them as soon as the second half of the loans is given to the student in the Spring. For example took out a Parent Plus loan in the first year. As soon as the second half of the loan is released you will begin to pay it off. Then your child may enter a second year of school. During that time you will likely take out a second loan. The secret is to take those two loans and consolidate them into one. Your payment will be much lower if you refinance the two loans into one rather than pay them both off separately.

Is Having Children Bad for the Planet?

I read something today that perturbed me as I do have quite a few kids but I am not thinking of having any more on purpose specifically because of my environmental concerns. The article was from last year and published last May in The Australian. It was by Sarah-Kate Templeton and all about how having children should be considered to be an environmental misdemeanor. Having too many children leaves a huge carbon imprint the same w ay as not recycling and driving big SUVs does. Most people are going to read this and glaze over. We need the SUVs to cart our large families around.
The original paper done on this concept was put together by the Optimum Population Trust. The idea behind it is that if each couple had two children instead of three the savings in carbon dioxide output would be the equivalent of 620 return flights a year between New York and London. Although this seems impressive I am like so many other humans wondering why I should go to the trouble of not breeding while millionaires are still allowed to fly around the world in their jet planes. I am thinking about people like Tom Cruise and John Travolta who supposedly care about the environment yet charter jet planes. Am I not supposed to procreate before some kind law cracks down on their indulgent behavior?
Does it surprise anyone reading this that the rest of the world thinks we are so selfish for having so many children when we have the birth control available to us to stop it? After the entire problem in so many underprivileged countries is that there is a lack of birth control. The result is too many babies, most of them starving. Many of the children in those countries don't even live long enough to leave a very big carbon imprint on the world. Yet we have these children that grow up to own one or more cars or homes and that insist on continuing cycles of consumerism that support industries that harm the environment. What's a mother to think? Is this survival of the fittest? Or survival of the bullies?
People make a big deal about Earth Hour and shutting off their lights for one hour but really effective change would be accomplished by not having a kid. By comparison the savings in energy when it comes to things like shutting off all of your lights at night or lowering your thermostat seem like spits in the bucket.
John Guillebaud, co-chairman of OPT and emeritus professor of family planning at University College London said – “The greatest thing anyone in Britain could do to help the future of the planet would be to have one less child.” I would cap that statement off with an advisory to adopt one as well.
According to Guillebaud, The British fertility rate is 1.7. The European average is 1.5. Despite this, Professor Guillebaud says rich countries should be the most concerned about family size as their children have higher per capita carbon dioxide emissions.