Parent-sponsored student loans will be easier to get next year

The Obama administration is moving to make it easier for parents to get student loans for their kids in a program called “Parents Plus.”

According to the Wall Street Journal, the Education Department will effect a plan next year to ease credit checks. Instead of checking the last five years of credit “… for blemishes such as delinquencies or debts in collection,” they will check only the past two years of a borrower’s credit. “Also, any delinquent debts below $2,085 would be overlooked; currently, delinquencies of any amount are grounds for rejected applications.”

This should make it easier for low- and moderate-income parents to borrow money to help their children get through college.

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