[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-325790-105":3,"detail-sidebar-cat-0-en-105":81,"doc-detail-325790-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","plus-loan-program-works-should-be-expanded-study-suggests","PLUS LOAN PROGRAM WORKS, SHOULD BE EXPANDED, STUDY SUGGESTS","","Article details findings from a federally guaranteed Parent Loans for Undergraduate Students (PLUS) program, citing a Massachusetts report by the Massachusetts Higher Education Assistance Corporation (MHEAC). It states that 99% of borrowers repay and that default claims remain extremely low, with credit checks identified as the key factor. The study also explains higher loan amounts and longer repayment choices, then recommends raising borrowing limits and expanding repayment flexibility, including consolidation with other federal loans.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/plus-loan-program-works-should-be-expanded-study-suggests/325790/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/plus-loan-program-works-should-be-expanded-study-suggests/325790.png","ImageObject",300,407,{"name":42,"@type":43},"Rowan","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-29","2026-09-21",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",9,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What does the MHEAC study say about PLUS loan repayment performance?","Question",{"text":63,"@type":64},"The study reports that 99% of PLUS borrowers repay their loans, with default claims being very limited in Massachusetts since the program’s 1981 start.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"Why does the study attribute the low default rate to credit checks?",{"text":68,"@type":64},"It argues that requiring credit checks for PLUS loans helps ensure payments are made, directly supporting lower default outcomes.",{"name":70,"@type":61,"acceptedAnswer":71},"What changes does MHEAC suggest to improve the PLUS program?",{"text":72,"@type":64},"MHEAC recommends raising PLUS borrowing limits and allowing more flexible repayment terms, such as extending repayment periods and using graduated repayment schedules, along with enabling broader loan consolidation.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},325790,1790223333,{"code":4,"msg":82,"data":83},"success",[84,88,92,96,101,106,111,115,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},"Story & 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PROGRAM WORKS,SHOULD BE EXPANDED,NEW STUDY SUGGESTS\n\nAmid the sturm und drang over skyrocketing student loan default rates comes areport on a federally guaranteed loan program in which 99 percent of its bor-rowers repay their loans.It is,the study contends,a program ripe for expan-sion.  \nParent Loans for Undergraduate Students(PLUS),an unsubsidized loan programgeared toward middle-income families and independent students,has shown asteady default rate of about 1 percent in Massachusetts since it was institutedin 1981,according to a new report by the Massachusetts Higher Education Assis-tance Corporation(MHEAC).  \n\"Of the more than 25,000 PLUS loans provided to parents and students in Massa-chusetts since 1981,a total of only 138 default claims have been processed,\"the study says.  Although the study focuses on Massachusetts,MHEAC researcherssay the figures are similar to those of other states involved with LUS.  \nCredit Checks CitedThe big reason for the low default rate in Massachu-setts can be summed up in two words:credit check.  \"If you require a creditcheck for PLUS loans,as many states do,you can go a long way toward assuringthat payments will be made,\"said Thomas Parker,director of planning andresearch for MHEAC.\"That is going to help you considerably.\"  \nParker added that Guaranteed Student Loan(GSL)default rates are not as highas some would like the public to believe.Parker,like many members of thelending community,estimates the GSL rate at about 5 percent,while the federalgovernment puts the figure at twice that amount(HED,Aug.30,1985)。  \nPLUS is intended as a supplement to the GSL program and was aimed at parents ofdependent undergraduate students,especially those in the middle-income groupwith limited financial aid options.Under the provisions of the LUS program,parents,independent undergraduates and graduate students may borrow up to  \n$3,000 a year.The interest rate,which has ranged from 9 percent to 14 per-cent,varies according to a formula based on Treasury Bil1 rates.Since Nov.  \n1,1982,the rate has remained at 12 percent.  \nThe program's default rate is low even though most Massachusetts PLUS loans aremade in large amounts.Since 1981,nearly 83 percent of LUS loans made toparents have been in excess of $2,500.  \nParents and students entering PLUS repayment have opted for longer-than-averagerepayment periods,the study says.Although the most frequently granted repay-(more)  \n# PLUS LOAN PROGRAM WORKS,SHOULD BE EXPANDED,STUDY SUGGESTS(Cont.)\n\nment term for the loans is 60 months,MHEAC researchers have found a marked in-crease in loans made with repayment terms as high as 120 months.  \n\"This is particularly true for parents who were able to consolidate their PLUSloans(thereby lengthening their overall repayment terms)and for graduate andprofessional school students whose high cumulative debt levels warrant a repay-ment period longer than the customary 60 months,\"the study noted.\"HarvardUniversity,the leading student PLUS lender in Massachusetts,often will pre-pare a repayment schedule for student borrowers based on the maximum of 120payments over 10 years.\"  \nLender participation in the LUS program has increased,according to MHEAC.Some 118 lenders were involved in the program in 1981,increasing to 189 in1984。\"In all,the LUS program has a number of features which make it auseful source for borrowers and a relatively inexpensive,cost-effective pro-gram for lenders and for the federal government,\"the study concluded.  \nTo improve the program even more,MHEAC suggests raising the PLUS borrowinglimits to“at least $6,000 per academic year or 80 percent of the costs ofeducation less other aid.\"The increase in 1imits is necessary because thecost of education now exceeds $15,000 at many private undergraduate institu-tions and is even higher at graduate and professional schools,MHEAC argues.  \n\"I don't see any evidence that would indicate an increase in the loan limitswould increase the d","cbCaibFd37NmVTu0","https://ap.wps.com/l/cbCaibFd37NmVTu0","pdf",1213012,"English","# PLUS LOAN PROGRAM WORKS, SHOULD BE EXPANDED, STUDY SUGGESTS\n## Low default rate and credit checks\n## Loan terms, repayment periods, and consolidation\n## Recommended program expansions","[{\"question\":\"What does the MHEAC study say about PLUS loan repayment performance?\",\"answer\":\"The study reports that 99% of PLUS borrowers repay their loans, with default claims being very limited in Massachusetts since the program’s 1981 start.\"},{\"question\":\"Why does the study attribute the low default rate to credit checks?\",\"answer\":\"It argues that requiring credit checks for PLUS loans helps ensure payments are made, directly supporting lower default outcomes.\"},{\"question\":\"What changes does MHEAC suggest to improve the PLUS program?\",\"answer\":\"MHEAC recommends raising PLUS borrowing limits and allowing more flexible repayment terms, such as extending repayment periods and using graduated repayment schedules, along with enabling broader loan consolidation.\"}]","PLUS LOAN PROGRAM WORKS, SHOULD BE EXPANDED, STUDY SUGGESTS | PDF",1789971425,13]