GM and Chrysler received better terms than familes. Twenty percent of the parent borrowers make less than $50,000 a year. The Discount rate is 0.75%. PLUS loans should be capped at 2% over the discount rate or 5%, whichever is lower.
Why is this important?
Last year the US government disbursed $10.6-billion in Parent PLUS loans to just under a million families. The interest rate is 7.9%.
