Parent PLUS or Minus

The PowerPoint presentation used for this event is located here. Read Rachel’s Fishman’s report on Parent PLUS loans here.

In fall 2011, the U.S. Department of Education quietly tightened the eligibility requirements for Parent PLUS loans, a little-known federal program that provides loans to parents to send their children to college. As a result, many families and higher-education institutions were shocked to find that parents approved for the loan one year were suddenly denied the next. Students in the middle of their academic careers found themselves covering a much larger portion of the bill. Incoming freshmen who had already paid their deposits were faced with a much steeper bill than initially anticipated. Some institutions witnessed tumbling declines in enrollment and a subsequent loss of revenue that toppled budgets.

Since the change was made, the Department and the White House have been publicly criticized for restricting access to Parent PLUS loans. Colleges charge the administration with cutting off student access to college and damaging the finances of institutions that serve low-income students. Meanwhile, the Department maintains that it was simply following the letter of the law in making sure the government doesn’t saddle parents with loans they cannot repay. This spring, the issue of the Parent PLUS credit check will be part of the Department’s negotiated rulemaking process. Until then, some of the colleges most affected by the change would like the Department to revert back to the old credit standards.

On January 8^th, the New America Foundation’s Education Policy Program hosted an event focused on the PLUS loan controversy. Our panel of experts discussed the changes to PLUS loans and the subsequent impact on families and students. The conversation will touch upon college affordability, intergenerational borrowing and what it means for student access to higher education. 

Join the conversation online using #PLUSloan and following @NewAmericaEd. 

If you are unable to join us in person, please tune in to our live webcast of the event. No signup is required to view the streaming video.  
 

Participants