Credit hit of loan for kid's college

Source: money.cnn.com Posted By: Maxcy J...5426 days ago

Q. It looks as if we will need to take out a $12,000 PLUS loan to cover the cost of our son's college tuition this year. How will that affect our ability to borrow for other things? -- G.S., Montclair, N.J.

Penelope Wang, senior writer, says:

A. The parent loan for undergrad students, or PLUS loan, can erode your borrowing power in two ways: by increasing your debt-to-income ratio and by lowering your credit score. While you'll probably be able to refinance or get a new mortgage, with a higher....

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