Financial GPS

Financial GPS

Can I, the parent, afford it?

Your answer

You have a winding path.

You can get there, but it takes longer: payments would take 6.5% of household income above basic expenses once all four years of loans are being repaid.

To get to a clear road, you’d need to borrow about $300 less a year.

$3,000
Loan rate

Interest keeps building while your student is in school and for six months after, then it’s added to what you owe.

Also paying your student’s loans? Work it out together in the family tool

How much your borrowing takes

At $3,000 a year, the ten-year payment of $152 a month takes 6.5% of household income above basic expenses: a winding path (Caution). At $83,000, you could borrow up to $2,700 a year in Parent PLUS and stay on a clear road (Safe), or $4,600 before it turns into a rough road.

The ten-year payment once all four years of loans are being repaid, the framework’s yardstick, with household income held at $83,000 and basic expenses of $54,640 a year.

Your payments, year by year

Each bar is one month’s payment in that year. Each year’s loan starts repayment when it’s paid out, so payments stack through college, then step down as the first loans are paid off. Green is a clear road, yellow a winding path, red a rough road: 6% and 10% of household income above basic expenses.

Parent PLUS payments against household income above basic expenses · scale to 20%Parent PLUS

    Ten-year payments, the framework’s yardstick, at 9.07%.

    Your payments, year by year: dollars a month in each year
    YearParent PLUS payments
    1$38
    2$76
    3$114
    4$152
    5$152
    6$152
    7$152
    8$152
    9$152
    10$152
    11$114
    12$76
    13$38

    Basic expenses: $54,640 a year, 200% of the 2026 poverty line for a household of three. 2026–27 federal rates: Parent PLUS at 9.07%. A planning tool, not financial advice or a prediction. How we calculate it: Methodology