Nansi Lynch never went to college. But she’s approaching retirement with a $156,000 student-loan balance.
“I don’t get rid of it until I turn 75 years old,” Lynch said. “I’ve never heard of something so disastrous in my life.”
The 60-year-old took out federal parent PLUS loans, which carry the highest federal interest rate of 9.07%, for both of her children. Previously, parents could borrow the full cost of attendance. In July, the Trump administration imposed a lifetime borrowing cap of $65,000 per dependent for new parent PLUS loans, in an attempt to address spiraling debt.
Under her pre-existing income-driven repayment plan, Lynch’s monthly student-loan payments were $238. Lynch worries her payments…