I wanted to follow up on yesterday’s post: How Much College Loan Debt Is Too Much?
In that post I talked about what is an acceptable level of college loans that students should assume. That post prompted Stuart, a blog visitor, to ask me this question about PLUS loans:
What about the parents? What is a reasonable amount of student debt for the parents to borrow using the PLUS loan program?
I thought I’d share what I told him:
Unfortunately, there is no one right answer to the question of how much parents should borrow. I can say this, however, you certainly shouldn’t jeopardize your retirement savings by assuming a big college debt.
One way to answer your question is to figure out what your monthly PLUS loan payments would be by using a loan calculator. Here is the link to a Parent Loan Repayment Calculator on the College Board website. After you take a look at what your monthly obligation would be, you should have a better idea of how much college debt you can handle.
The College Board also has a Parent Debt Calculator that can also help pinpoint how must college debt you could safely assume.