By Tim Kowols
Parents of college students may need to look to other methods if they realize the need for a few extra dollars to pay for tuition. The Parent PLUS Loan is a federal student loan parents with a good credit history can take out to help their dependent children afford the cost of college. With high-interest rates at seven percent currently, Gay Pustaver from Money Management Counselors says parents need to remember they are potentially borrowing against their own retirement.
Pustaver recommends taking a Parent PLUS loan out if you have enough assets through investments and real estate to pay it off if you do not want to spend the money right now. You can hear more about Parent PLUS Loans during our most recent Money Management Monday interview with Gay Pustaver online with this story.