More Parents Are Defaulting on College Loans For Their Children, Costing Taxpayers

Parents are increasingly struggling to repay federal loans they’ve taken out to help cover their children’s college costs, according to newly released federal data. The Parent Plus program allows parents to take out essentially uncapped amounts to cover college costs, regardless of the borrower’s income or ability to repay the loan. As the cost of college has risen, the program has become an increasingly critical workaround for families that max out on federal student loans and can’t pay the rest out of pocket. Education Department officials have long said that they simply don’t have figures on how many of the loans were in default. But the agency has finally run some numbers. More...