If you're not a homeowner or you have very poor credit, consider debt relief instead of a mortgage.

1) Type of debt:

Credit Card Debt
Student Loan Debt
Tax Debt
Other Debt

2) What State do you live in?

 
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Repaying PLUS Loans

The Federal PLUS Loan offers parents a way to help their children pay for higher education. If your family obtained a Federal PLUS loan, it's important to understand how loan repayment fits into your family's financial plan.

For Parents
Unlike other Federal student loans, the Federal PLUS Loan doesn't have a grace period, so you are expected to start making payments on the principle and interest within 60 days of loan disbursment. If the Federal PLUS Loan papers were signed after July 1, 2006, the interest rate is fixed at 7.94%. The interest rate for loans taken out before that date cannot exceed 9%, and variable interest rates are adjusted each year.

The Federal PLUS Loan has several repayment options. A graduated payment will increase over time, and the extended payment plan allows up to 30 years to repay the loan. Deferment and forbearance may be available, but because the Federal PLUS loan is unsubsidized, interest payments must be made even if the principle payments are deferred.

Regardless of your parents' financial situation or your financial situation, responsibility for repaying the Federal PLUS Loan falls on the parent. Failure to make loan payments can affect your parents' credit. They should contact their lender immediately if they suspect they will have trouble repaying the loan on time.

For Students
If your parents have taken out a Federal PLUS loan on your behalf, consider creating a budget to help them make payments on time. By working out a repayment schedule, you can help take over some or all of the costs of your online education.

Setting Priorities
Your family may have other debts in addition to the Federal PLUS Loan. Prioritize the mortgage, car, credit card, or personal loan payments based on interest rate, and work to accelerate the payment of bills with the highest interest rates. It may be possible to consolidate debt through refinancing a home mortgage.

The legal burden of the Federal PLUS loan falls on the parents, but repaying the loan can be a team effort between parents and the new degree-holder.