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How Mindfulness at Work Helps Your Health … and Maybe Even Your Bank Account

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mindfulness at work

Mindful working encompasses a variety of different practices. It includes ways to practice mindfulness throughout your work day. This allows you to stay present, centered, and calm regardless of what’s going on around you. Mindful working also means that you approach your career path with intention even as you stay grounded in the moment.

Mindfulness at work has a variety of health benefits. We see those benefits when practicing mindful working. Moreover, you might think that slowing down at work would negatively impact your career. However, mindful working can actually lead to a better work life and possibly even more money in your bank account.

What Is Mindfulness?

Mindfulness is a really trendy term. In fact, it’s become quite controversial. Mindfulness is one form of meditation practice. There is certainly a whole art to meditation. Therefore, if you want to dig deep into mindfulness, then you may wish to take courses and learn more.

That said, the concept of mindfulness is really a very simple one. It’s the practice of staying aware of all things happening inside of you and outside of you in the present moment. It’s awareness without judgment.

In other words, you may never stop having random thoughts, but with mindfulness, you become aware of those thoughts. Over time, the thoughts hold less power. You can watch them occur without reacting.

What Is Mindfulness at Work?

Mindful working simply means taking the concept of mindfulness and apply it to your work life. There are two key aspects to this:

  1. Practicing mindfulness in your day-to-day work life
  2. Taking a mindful, intentional approach to career planning

Daily Practices in Mindful Working

If this is something that interests you, then the majority of your effort will be in the first aspect: practicing mindful awareness every day at work. Additionally, you’ll practice mindfulness when you’re outside of work but find thoughts of work intruding on your mind.

When You’re At The Office

Examples of this at work mean that you:

  • Set a daily intention upon arrival to remain as present as possible throughout the day.
  • Single task instead of trying (and failing) to multitask.
  • Take breaks to breathe, focus on what’s around you, and clear your mind.
  • Practice gratitude throughout the work day.
  • Tune in to your body to check for stress and reactivity, pausing to ground yourself accordingly.

You also implement a variety of different techniques to limit distractions. You turn off all of the notifications on your devices so that they aren’t constantly pinging at you. Perhaps you have a “closed door” time each day at the office when coworkers aren’t to interrupt you. As much as possible, you create a schedule and setting that enhances your ability to do one thing at a time with complete focus.

When You’re At Home

These days, work doesn’t take place from 9-5. Maybe you work from home. Or perhaps you work from an office, but your job calls upon you to answer emails at all hours. Mindful working means that you find a way to delineate “work time” and “rest time” even though that’s a challenge.

If you never turn off, then you’re stressing your body and mind. This isn’t healthy, and it isn’t productive. People need downtime to replenish their internal resources. Without that time, you end up running on empty. You’re not giving your best self to the job or the other things in your life.

Therefore, you find ways to be completely present at home or with friends when that’s where you are. You limit contact with work during out-of-office hours. If you work for yourself, you still create “out of office” hours when you can wind down. You practice meditative and centering exercises to train your brain that it doesn’t constantly have to think about what’s going on at work.

Planning Your Career Intentionally

Mindfulness is about staying in the present moment. However, that doesn’t mean you can’t apply it to planning out your career. In fact, approaching your career trajectory with mindfulness can greatly improve your job satisfaction as well as your overall quality of life.

This simply means that you actively schedule times to think about your work plans. For example, you might do a monthly review of your goals for the year and an annual review of your long-term goals. During those times, you focus intensively and intentionally on planning out your next steps.

Outside of those times, you practice just being in the moment, knowing that you’ve got a plan in place, so you don’t have to worry. People worry about their jobs constantly. They worry about what’s next, how the economy will affect their job security, whether or not they’re moving up in their work, how to get more business … This distracted mind isn’t healthy, and it isn’t productive.

Benefits of Mindful Working

Mindful working offers a vast array of benefits. More than anything else, you should see a better state of mind, which in turn leads to some terrific physical health benefits. But you may also find that working more mindfully improves your career, too, which allows you to earn more money over time.

Mental and Physical Health Benefits

Research has shown that mindfulness offers benefits that include:

  • Better concentration and working memory
  • Better sleep
  • Faster, more effective task completion
  • Fewer headaches, GI problems, and physical aches
  • Increased self-awareness
  • Less preoccupation with regrets or worries
  • Less reactivity
  • Lower blood pressure
  • More capacity for joy in daily life
  • Reduced conflict with others
  • Reduced stress
  • Symptom relief for depression and anxiety

Career and Financial Benefits

Benefits of mindful working may include:

  • Better work-life balance
  • Decreased likelihood of burnout
  • Doing your job better because you’re more focused
  • Improve co-worker relations
  • More job satisfaction
  • New, fresh ideas for problem-solving
  • Renewed sense of appreciation for your work
  • You run your job; your job doesn’t run you

Mindful working means that you’ll make choices that are right for you. This improves your relationship with your career. In turn, this can mean better career advancement, which could mean earning more money.

Moreover, it also means that you are happier with what you have. Therefore, even if you don’t technically earn more, you may be happier with your earnings. If you’re happy at work, then you’re less likely to engage in spending to “make up for” not enjoying your job.

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Barbershops and Laundromats May Help Your Child Learn to Enjoy Reading

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There are a plethora of benefits to reading more, but try explaining that to your child. You’ll probably get eye rolls and a few sighs. Attempting to get your child to enjoy reading in adolescence can be difficult. A new effort may be able to help.

How Reading Impacts Your Finances

Encouraging your children to read more can impact their financial security in the future. For the most part, people need to read more about finance to really get a good idea as to how to handle managing their money. Even though personal finance topics can be boring to read about (especially for beginners), they can make a world of difference.

Kids who are encouraged to read in order to prepare for tests and exams are more likely to also adopt the habit of reading as an adult. Additionally, starting out with novels or fiction books can help transition your child into reading about more complex content, such as personal finance. Teaching your child ways to enjoy reading can provide financial security and understanding for years to come.

Barbershops and laundromats may be able to assist parents in encouraging their child’s reading habits.

Laundromats and Barbershops Help Kids Enjoy Reading

Dozens of barbershops and laundromats across the country have begun a movement to help kids enjoy reading. The idea behind the movement is to bring the books to the children instead of having kids seek out books themselves. It brings literature to places where children have nothing else to do and may have time on their hands.

It is supported by a number of nonprofit groups, libraries, community organizations, and entrepreneurs. For the most part, these “libraries” have begun to pop up in salons, barbershops, and laundromats in economically struggling areas of the United States.

In some cases, kids are encouraged to read their books aloud while getting a haircut or waiting on their laundry with their family. They’re typically offered snacks or a couple of dollars to read.

Barbershop Books

As mentioned, these are being established at places within the community that already serve as stop-in spots in the neighborhood. In Detroit, the owner of Cutz Lounge the Grooming Shop, Dante Williams, has a section of his business where people get together and chat. He’s placed children’s books, at eye level, to get kids to pick up one and read while they’re there.

“Sometimes you do have to purposely tell the kids, ‘Hey, grab a book,’” Mr. Williams said. “I like to put it in their hands and say, ‘Hey, look at this.’ It encourages them a little bit.”

Williams’ shop is supplied with books from Barbershop Books, a literacy program that began in Harlem in 2014. The founder of the program wanted to take advantage of the fact that barbershops and laundromats typically serve as meeting places in lower-income areas. Specifically, Barbershop Books hopes to help improve the reading rates among black children in the U.S.

The nonprofit group has supplied books in 185 barbershops (20 states and 44 cities). For business owners, the program also provides early literacy training for barbers. Barbershop Books is working on developing a similar program for beauty salons.

Libraries Without Borders

As mentioned above, laundromats are serving as another place where children will learn to enjoy reading. Most of the time, families will spend an hour or two at the laundromat. This provides the perfect opportunity to introduce books.

One of the nonprofit groups leading the literacy programs through laundromats is called Libraries Without Borders. The program is helped along with grants. Libraries Without Borders is also part of the Laundry Literacy Coalition. This coalition helps promote literacy through laundromats throughout the nation.

Its first program was launched in the Bronx, Queens, and Brooklyn last year. What they saw was, when given the option, kids are more likely to pick up a book than toys. The coalition hopes to create spaces for reading in 30,000 laundromats and coin laundries in the U.S.

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Are Banks Open on 4th of July 2019?

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are banks open on 4th of july
Independence Day is widely observed in most of the United States. Since it is a federal holiday, the majority of banks and credit unions will be closed, as well as many other establishments such as the post office, stock market, and some other businesses. Where banks and credit unions are concerned, there are a few exceptions, if you’re wondering, “are banks open on 4th of July.”

Although there are a few banks and credit unions open, these tend to be smaller regional banks or bank branches which happen to be located in grocery stores, which will be open for the holiday. These institutions will also usually be running on shorter holiday hours for the day, not their regular Tuesday hours. Because they can vary from location to location, if you plan to visit any of the institutions below, call to confirm they will be open and their hours.

Are Banks Open on 4th of July?

A handful might be open, but usually only in specific locations for limited hours.

  • Central Pacific Bank: CPB is a bank located in Hawaii. They will have select branches open on the Fourth of July during limited holiday hours from 10:00 AM to 4:00 PM.
  • First Convenience Bank: FCB is a bank located in Texas which will have its bank branches on Independence Day from 9:00 AM to 5:00 PM.
  • Metro Bank: Is a local bank in Harrisburg, PA. Metro will have its drive-thru and its downtown branch open for business for limited hours (from 7:30 AM to 1:00 PM) on Tuesday, July 4.
  • PNC Bank: Stand alone branches will be closed, but some PNC branches located in grocery stores will be open for limited hours. These vary depending on the supermarket location, so it’s important to contact that branch directly to confirm the hours.
  • US Bank: Some US Bank grocery store branches will be open for business on the Fourth of July for limited hours. These will vary, so it’s important to contact your local supermarket branch to confirm if that one will be open and during what hours.

Credit Unions Open on 4th of July

  • Fort Financial Credit Union: This credit union in Indiana has a number of grocery store branches in Meijer supermarkets. These will be open from 11:00 AM to 5:00 PM on July 4, but not the stand-alone branches.
  • Landmark Credit Union: The grocery store branches of this credit union (not stand-alone branches) will be open from 9:00 AM to 1:00 PM on the Fourth of July.

It’s important to remember that just because your bank will be closed for the July 4th holiday, it doesn’t mean that you won’t be able to do any banking at all. Most bank ATMs will allow you to perform basic banking transactions and are open 24 hours a day, seven days a week, 365 days a year. If you have to do a simple withdraw or deposit, you should be able to use your bank’s ATM.

Nowadays, you can also do most of your banking online or through the bank’s mobile app. You can make transfers, pay bills and manage your money online. If you think you need to go into the bank and are unsure of your bank’s holiday hours, the bank’s website will also be able to give you information regarding their Fourth of July hours.

The following banks will be closed on the Fourth of July:

  • JP Morgan Chase
  • Bank of America
  • Wells Fargo
  • Citigroup
  • HSBC
  • Bank of New York Mellon
  • SunTrust
  • State Street
  • Capital One
  • BB&T
  • Toronto-Dominion
  • Royal Bank of Scotland
  • Regions Financial
  • Fifth Third Bank
  • ING
  • KeyCorp
  • Northern Trust
  • Bank of Montreal
  • Bank of the West
  • Union Bank
  • Allied Irish
  • Comerica
  • Zions Bank

If your bank is not listed, it doesn’t mean that they are not open on the Fourth of July. If you are wondering about a specific bank and location, give the institution a call and verify their holiday hours.

(Photo courtesy of Steve Trottier)

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Credit Score Misconceptions: Do You Know These 7 Things That Most Consumers Don’t?

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credit score misconceptions

There are a surprising number of credit score misconceptions out there. We all have some familiarity with certain credit score facts like what a credit score is and that we should have a higher number to get good loans. In recent years, most of us have even become more aware of our score, thanks to an increasing number of tools allowing us to access that information. Nevertheless, recent research indicates that most people have no clue about the details of their credit score.

What is a Credit Score?

Your credit score is a three-digit number. It represents your history of loans and repayment. Therefore, it’s the number that most lenders use to determine whether or not to lend money to you.

If you have a good credit score, then you’re more likely to be able to borrow money. Moreover, you’ll get better rates. The worse your credit score, the harder it is to get a loan, and the more you’ll pay in interest when you do find a lender.

Your credit score is based on a variety of factors, including:

  • The length of your credit history
  • Your on-time payments vs. late payments
  • The types of loans that you have
  • The amount of money that you owe on those loans
  • How much credit you have

There are actually many different credit scores – more than you might think as you’ll discover below. But for the most part, you get a three-digit number that’s between 300 and 850. The higher it is, the better your credit.

If that’s all that you know about credit scores, then you’re in the same position as many people. But if you think that you know more then you might want to check out the following seven credit score misconceptions. Your information might be incorrect.

Credit Score Misconceptions

Credit Card Insider recently published the results of a 1000+ person survey about credit scores. The results indicate that there are a lot of credit card misconceptions out there. People think that they know things about credit scores and may be surprised to learn just how wrong they are.

1. There Are Hundreds of Different Credit Scores

If someone asked me how many credit scores I have, I’d probably say three. Like many Americans, I’ve been well-trained to think immediately of “the big 3” credit reporting agencies: Experian, Equifax, and TransUnion. I’m not alone in this belief. Nearly half of those surveyed thought that we each have three credit scores. Another 30% thought it was less than that – either 1 or 2 credit scores.

However, we actually each have hundreds of different credit scores. There are both big and small credit scoring agencies out there. There are different tools used to calculate credit scores: FICO and VantageScore are the primary methods. Although your scores should be similar across all tools, they can differ some from one to the next.

2. Your Income Doesn’t Impact Your Credit Score

Almost 60% of people surveyed believe that your income impacts your credit score. However, that’s not the case. The reason people get confused about this is because income does play into whether or not a lender will offer you a loan. After all, if you don’t earn enough money to repay your loan, then it’s a huge risk for them to lend you that money. Therefore, the lender will look at your income as well as your credit score and other factors.

However, the score itself doesn’t take your income into direct consideration. If you have no income at all but use a credit card that someone else pays off for you, then you might have a great credit score. If you have a seven-figure income but lots of late payments, then you might have a terrible credit score. The only way that income matters is that of course, it’s easier to make on-time payments in full if you have a steady, good income. But the number of your income itself is irrelevant to your credit score.

3. Applying for New Cards Does Affect Your Credit Score

I was surprised to learn that more than one-quarter of respondents didn’t know this. When you apply for a credit card, the institution you’re applying to makes a hard inquiry on your credit report. That decreases your credit score. The decrease is minimal and doesn’t last long in terms of your credit history. However, if you’re teetering on the edge between a “fair” and “good” score (or any two scores) or you are working hard to build your credit then you might want to avoid applying for new cards for a while.

4. Your Debit Card Doesn’t Help Your Credit Score

Your credit score is a reflection of your credit history. Remember: your debit card is basically cash. It doesn’t count towards your credit history. Therefore, if you use your debit card to pay for things, then you’re not building your credit. If you want to improve your credit score, then you need to use your credit card (and pay it off on time). Even if you select “credit” at checkout, your debit card is still a debit card, and it doesn’t change your credit score.

5. Closing Accounts is Not Good for Your Score

More than one-quarter of people surveyed thought that canceling a credit card would improve their credit score. I’m guessing that the thinking behind this is as follows:

  • If I cancel my account, then I can’t use the credit card.
  • If I don’t use the credit card, then I can’t accrue more debt.
  • Moreover, I won’t potentially make late payments because I won’t owe anything.
  • Therefore, it’s better for my credit to cancel the card.

It’s certainly true that having no card is better than having a card you run up a high balance on and then pay late. However, canceling the card altogether isn’t your best course of action. It can decrease your credit score. Instead, just put those cards out of reach, avoiding the problems without compromising your credit.

Notably, if you don’t use your card for a long period of time, then the credit card company might cancel it or reduce your available credit. This isn’t great for you either. Therefore, you should pull the card out periodically, charge something inexpensive on it, and immediately pay it off.

6. No Debt Isn’t Necessarily the Same as a Good Credit Score

One of the keys to maintaining a high credit score is to utilize your credit regularly. You have to use it, but then pay it off quickly. You do want to keep your overall debt low. The ratio of your debt to your available credit is one factor in your credit score. However, having zero debt doesn’t necessarily mean that you’ll have a good credit score.

Consider this: if you’ve never had any debt before then you don’t have a credit history at all. Therefore, you can’t have good credit. This is what teenagers face when they first try to get loans. So, although more than one-quarter of people surveyed assumed that having no debt means you’ll have a good credit score, that’s not necessarily true. It may be true, but it may not be. There are other factors to consider.

7. Your Credit Score is Not On Your Credit Report

More than three-quarters of people surveyed believed that if they ordered their credit report today, then they would see their credit score. They would be surprised once they got that report, then. Your credit score is based on the information in your credit report(s). However, you won’t find the score itself anywhere on your credit report. These are two related, but entirely separate, things. You can get your credit score from a variety of different places, often for free, but you can’t get it from your credit report.

How did you fare? Did you know the right answer to these seven credit score misconceptions?

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What’s Open and What’s Closed on July 4th 2019?

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whats open July 4th
Independence Day is just around the corner. If you’re planning on spending time away from the backyard barbecue, it’s good to know which businesses are and aren’t open on July 4. With July 4 landing on a Thursday this year, it can get a bit confusing figuring out what’s open July 4th.

What’s Open July 4th, 2019?

As a general rule, retailers will be open (with exceptions), and government offices will be closed for the day. Below you’ll find what’s open on July 4th in 2019, but it’s always a good idea to confirm with anyplace you plan to go to verify that they will be open, as there can be exceptions.

Major Retail Stores

Most large retail stores are open. Most retailers will be open on July 4, with many offering special sales over the 4th of July weekend. This includes stores like Target, Walmart, and Home Depot. A major exception will be Costco, which won’t open its doors on Independence Day. For those of you planning to shop all the sales, keep in mind that a deal isn’t a deal no matter what the price is if it’s something you wouldn’t have purchased for full price.

Food and Grocery Stores

Grocery stores are open. All major grocery store chains will have their stores open if you need last minute barbecue food for the family. Some will be operating on Sunday or holiday hours rather than their regular hours, so call ahead if you need to drop by outside the core daily hours to make sure they are open. Smaller, independent grocery stores may or may not be open for the day, depending on their locations. You should call to verify if they will be open or not if you plan to stop by one of them.

Drugstores

Drugstores are open. All the major drugstore chains will be open for the holiday. This includes the big three of CVS, Rite-Aid, and Walgreens, and they will all likely have sales to coincide with the holiday as well. If you regularly visit a local or independent drugstore, they should be open as well, but it’s best to call and confirm before making a trip to see them.

Government Offices (Federal, State, and Local)

Government offices are closed. The vast majority of government offices are closed July 4th. Since the holiday lands on a Thursday this year, government offices might also close early on the 3rd and close the 5th. For the most part, all non-essential government offices such as courts, departments of motor vehicles, and Social Security offices will be closed for the day. Those government offices deemed vital to safety and security, such as police departments, fire stations, and air traffic controllers will continue to run.

U.S. Stock Market

Stock markets are closed. It’s going to be a short week for stocks. All U.S. stock markets will be closed on Thursday, July 4, for Independence Day. They will also be closed over the weekend, as usual.

Banks and Credit Unions

Banks and credit unions are closed. All banks and credit unions will close shut their local branches on Thursday, July 4, so you need to get any banking taken care of at the branches before then. Some banks might also be closed Friday.

While the banking branches will be closed for the day, you can still do most basic banking transaction either through the bank’s ATMs or at their website. These run 24/7 and will be working even on the holiday. Just be sure to note any transactions done on the holiday may not post to your account until the next business day.

Post Offices

Post offices are closed. July 4, being an official federal holiday, means post offices will be closed. Mail will also not be delivered on Thursday.

Public and Private Schools

Schools are closed. Since July 4 is a time when schools are usually out for summer vacation, this isn’t really an issue for most. It’s good to note, however, that most public and private schools will typically observe federal holidays, and be closed for them.

Libraries

Libraries are closed. The vast majority of libraries will close to observe federal holidays, so they will be closed on Thursday.

Garbage Service

Garbage service is closed. Garbage service won’t be in service on Thursday. Many services expected on Thursday will be moved to Friday.

Restaurants

In most cases, restaurants are open. Most major restaurant chains will be operating and open on Independence Day. Smaller restaurants which are independently owned may close for the day, so it’s best to contact them directly if you want to dine at them on Thursday.

Gas Stations

Gas stations are open. Gas stations should be operating during the day to cater to all those traveling for the holiday weekend. If there’s an exception and one is closed, there should be plenty of others in the area still open, so finding gas shouldn’t be an issue as you travel. Gas stations which are generally not open 24 hours will likely be on holiday or Sunday business hours.

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(Photo Credit: Flickr.com/ Beverly & Pack)

5 Things You Should Know Before You Take Out a Direct PLUS Loan

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Direct PLUS Loan

Today, at least 3.4 million people have a Direct PLUS Loan, a form of student loan available through the federal government that parents can take out to help fund their child’s education. Together, they owe around $90 billion. While many parents want to help pay for their child’s college degree, taking out a PLUS loan is not without risk.

What You Should Know Before You Take Out a Direct PLUS Loan

Parents of eligible college students have access to Direct PLUS Loans through a federal government program. The US Department of Education serves as the lender, leaving many to believe that Plus loans are a safe option to help fund a child’s education.

However, like any loan, there are pros and cons to using PLUS loans. Here are five things you need to know before you take out a PLUS loan to help fund your child’s education.

PLUS Loan Eligibility, Amounts, Fees, and Interest Rates

First and foremost, it is important to understand that not every parent can receive a Direct PLUS Loan. Along with being a biological, adoptive, or (in some cases) stepparent of a dependent student who is going to an eligible school at least half-time, you also have to have a decent credit history. There are situations where parents with adverse actions on their credit report can qualify, but that usually involves having a cosigner or proof of extenuating circumstances.

Parents can borrow amounts that cover their child’s cost of attending their selected college, minus the value of any other financial aid the student receives. Each school defines its own cost of attendance so that that number can vary from one institution to the next. However, this means there is no formal limit on how much a parent can borrow each year through the PLUS loan program.

The federal government sets the interest rate on a PLUS loan. For disbursements made between July 1, 2018, and July 1, 2019, that rate was 7.6 percent fixed. While the rate on loan will not fluctuate, the federal government can change rates on new loans during each subsequent one-year period.

Direct PLUS Loans are unsubsidized. Interest begins accruing immediately. While you can defer the payments until your child leaves college, your balance will grow based on the interest added to the loan over time. If you do not request a deferment, payments start right away.

Along with interest charges, parents also have to contend with a loan fee. The percentage also varies depending on the year, though sits at 4.248 percent from October 1, 2018, to October 1, 2019. This fee is deducted proportionately from each disbursement. It does not increase the amount of the loan. Instead, it reduces the amount that is sent to the school or can be used for qualifying costs, keeping the loan balance the same.

Repayment Programs for Parent PLUS Loans are Limited

Like other federal student loans, there are several repayment options for PLUS loans. Along with a standard repayment structure – equal payments over 10 years – there are alternatives. The graduated repayment plan has lower payments initially. Every two years, the size of the payment increases throughout 10 years.

On the extended payment plan, the payments can be spread out over 25 years. This leads to lower monthly payments, but you pay significantly more in interest based on the longer life of the loan.

Federal student loans obtained by students come with additional repayment options that simply aren’t available on PLUS loans. As a result, it is important to understand which plans are and are not available, ensuring you can factor that in before you take out a PLUS loan.

Loan Repayment Responsibility is Non-Transferable

Some parents may consider funding a child’s education with a PLUS loan believing that they can transfer the debt to their child after they graduate. However, that isn’t an option. The parent is the legal borrower and cannot transfer responsibility.

There are instances where the debt may be discharged. For example, should the borrower or their student die, the remaining balance is discharged. This can also happen if the parent becomes permanently disabled.

Otherwise, the expectation is that the parent will repay the loan in full during the designated time frame.

PLUS Loans Impact Credit Scores and Borrowing Power

Federal student loans are reported to the major credit bureaus, including PLUS loans. If you obtain a PLUS loan, the balance and payment history appear on your credit. Even if you make on-time payments, the balance of the PLUS loan can impact your borrowing power. Lenders consider the total amount you owe and payment sizes when determining if you qualify for more credit, and these factors also affect your credit score.

Additionally, like any other loan, late payments, missing payments, and defaults are reported on your credit history, impacting your credit score.

Default Comes with Serious Consequences

Failing to repay a PLUS loan comes with serious financial ramifications. Defaulting puts a parent at risk of being subjected to a range of forced repayment efforts, including wage garnishments, tax refund offsets, and Social Security offsets.

Even if you are in a dire situation and file for bankruptcy, you can’t escape a PLUS loan. These loans can’t be dismissed during bankruptcy, regardless of the hardship they create or the severity of your financial situation.

There are steps parents can take if they cannot repay a PLUS loan, including requesting a deferment or forbearance. However, these are only temporary solutions that stop payments for a period or allow for lower payments. Neither forbearance or deferment stop the accrual of interest, so the balance of the loan can still increase if at least the monthly interest charges aren’t paid during that time.

Ultimately, PLUS loans are not risk-free. Since there aren’t formal borrowing limits, parents can find themselves with massive loans. If repayment becomes challenging, there are few options to pursue that can provide relief, as even bankruptcy won’t stop these loans in their tracks. While PLUS loans can be viable options to help fund a child’s education, it is important to consider the risks before you sign on the dotted line. Otherwise, you could be putting your financial well-being in jeopardy.

Have you taken out a Direct PLUS loan? Is there anything you wish you knew before you did? Share your thoughts in the comments below.

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