A recent report by New America highlights 41 educational institutions where a significant number of low-income families have been directed to take out Parent PLUS loans.
The report reveals that these loans, often promoted to cover gaps in college financing, are disproportionately affecting families with limited financial resources.
Parent PLUS loans are federal loans available to parents of undergraduate students to help pay for college expenses not covered by other financial aid.
The report underscores the financial burden placed on these families, as many struggle to repay the loans due to their limited income. This situation raises concerns about the accessibility and financial sustainability of higher education for low-income families.
The highlighted institutions include well-known universities such as the University of Alabama at Birmingham, Temple University, George Mason University, and Kent State University, among others.
The findings suggest a need for a broader evaluation of how colleges and universities guide families in financing education. While the Parent PLUS loans can provide immediate financial relief, they often lead to substantial long-term debt, especially for families with fewer financial resources. The report calls for increased transparency and better financial counseling for families considering these loans, emphasizing the potential risks involved.
This revelation may prompt educational institutions to reevaluate their financial aid practices and explore alternative solutions to ensure that higher education remains accessible and manageable for all students, regardless of their financial background. As the conversation around college affordability continues, this report serves as a crucial reminder of the challenges faced by low-income families in pursuing higher education.
Source: Inside Higher Education
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https://www.insidehighered.com/news/students/financial-aid/2026/02/13/colleges-steered-pell-students-parent-plus-loans-report
