Parent PLUS Loans New Regulation and Its Impacts of College Student Enrollment

Well, more regulations on student loans.  This time the issue touches Parent PLUS loans.  To read more about the article, please click here.  When parents’ ability to borrow money is reduced, it will certainly affect demand for higher education services.  Meaning, students have to take more loans or colleges have to award more scholarships or financial aids so that the students are able to finish their program.  Consequently, any new regulations on student loans which may affect the amount of loans that borrowers can take may put more pressures on students’ ability to enroll for classes.  It then will decrease colleges’ ability to survive, especially for tuition-dependent colleges such as small private Liberal Arts Colleges or other for-profit institutions.

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