Alex is calling back in because after being called out for dumb ideas before, he has a new question that he thinks may redeem him. When he called in last time, it was about him going to an out-of-state college, and his parents ended up taking out the Parent PLUS Loan. The Parent PLUS Loan is a student loan that parents can take that covers up to the full cost of attending their child’s school minus any financial aid their child has already received.
Alex has managed to pay off his share of the loan; however, he still owes $150,000 to the Parent PLUS. Even though his parents took out the loan, he promised them he would be the one to pay it off. However, he is getting cold feet and isn’t sure if he should pay it off. Now yes, the loan is not legally in his name, but Dave stresses that he shook on it with his parents, and it is terrible for him to renege on the deal.
Dave explains that Alex took on this debt and was very lucky to have his parents offer their aid. So trying to skimp out of it now is just a slap in their face when it comes to kindness. Being a man means taking care of the problems you create.
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