Financial GPS · for students and parents together
Two parts. First, can the family cover four years of cost under the new loan limits? Then, can everyone carry the payments afterward, including if the parents can’t pay?
Step 1 · Paying for school
| Year | Family | Federal student loans | Parent PLUS | Private loans |
|---|---|---|---|---|
| Year 1 | $0 | $5,442 | $19,154 | $1,302 |
| Year 2 | $0 | $6,431 | $19,154 | $313 |
| Year 3 | $0 | $7,421 | $18,478 | $0 |
| Year 4 | $0 | $7,421 | $5,465 | $13,012 |
Under the new limits, $14,627 has to come from private loans. They’re priced on credit and usually need a cosigner, often a parent, who owes the debt too. If the family can’t get them, this school isn’t reachable at this income without more grant aid.
Paid in this order: family money, federal student loans up to the annual limits, Parent PLUS up to the caps, then private loans.
Step 2 · Paying it back
All fields at University of Redlands: typical pay of $75,863 four years after graduating. Basic expenses: $23,940 a year (150% of the 2026 poverty line, one person).
Student
Parents
Both incomes and both payments in one family budget: $649 + $1,076 a month together.
Pooled, the family covers both with $4,966 a month left.
If the parents can’t pay, the student takes on both: $649 + $1,076 a month.
Student
Parents
Student pays 0% of the Parent PLUS payment: the student pays $649 a month ($3,678 left), and the parents pay $1,076 ($1,288 left). At 0%, the parents pay all of their Parent PLUS.
The loan stays in the parent’s name whoever pays it.
For a household of three: two adults and one child at home.
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New Parent PLUS has no income-based plan and no Public Service Loan Forgiveness: the standard plan’s payment is the payment.
Its length depends on what you owe when repayment starts, including deferred interest: 10 years under $25,000, 15 under $50,000, 20 under $100,000, 25 above.
Already repaying Parent PLUS for an older child? A new loan moves those onto the new standard plan too.
Loans made from July 2027 can’t be paused for unemployment or hardship.
The student’s federal loans can use RAP, which is based on income. Private loans have no income-based plan.
10-year payment at 2026-2027 federal rates (6.52% undergraduate, 1.057% fee): a yardstick, not a repayment plan. Federal loans treated as unsubsidized, with interest from each disbursement until repayment starts six months after graduating. Private loans deferred in school at the chosen rate, repaid over 10 years. Earnings: College Scorecard median four years after graduating; half earn less. Basic expenses: 150% of the 2026 federal poverty guideline for one person, a national figure that doesn’t reflect local costs. Sources: College Scorecard via Azimuth; Federal Student Aid; HHS. Parent PLUS at 9.07% with a 4.228% fee, deferred while the student is enrolled. Parents’ basic expenses: 200% of the 2026 guideline for a household of three. Net price: the school’s reported averages by family income, estimated between bands.