Education Plan Vs Plus Loans
Posted by SYH on June 29, 2007
Many friends advice I to invest my money into children education plan. I did consider the suggestion and request for few quotes from different Insurance Company. However, I decided to cancel the investment plan after done some calculation. The main reason I don’t want to invest into the education plan is I have not much extra money to pay for that. Besides, home loan, daily expenses, others insurance premium and miscellaneous expenses, I still have to keep some cash for emergency used.
I have my own children education plan now. Instead of tied myself now for paying future expensive, I prefer to take the PLUS loans (Parent Loans for Undergraduate Students) at the time my children enroll to college. I believe that we have less commitment at that moment, we will still able to pay for the loan amount even at older age.
In addition, I don’t worry about difficulty on getting PLUS loans or amount is not enough to pay the education fees, because PLUS loans are not need-based. Parents can borrow 100% of the estimated cost of child’s college attendance that is including tuition, room, book, transportation and additional expenses. Plus loans are very good solutions for someone who don’t have money to invest into children education plan just like me.
