Parent PLUS Loans with No Borrowing Limits

Parent PLUS Loans impose unlimited federal borrowing with no income-based repayment checks, trapping retirees in six-figure debts—the average balance reached $38,000 in 2025, but 14% of borrowers over 60 owe over $100,000. This lack of a cap makes it riskier than Cosigner Traps on Private Student Loans's cosigner traps because PLUS Loans require only a minimal credit check and can garnish Social Security benefits without transfer to the student. The consequences are severe: unlike private loans, these federal debts have no discharge upon the student's death and cannot be transferred, leaving older Americans financially strained.