How Children Can Help Parents Repay Parent PLUS Loans
Parent PLUS loans are legally the responsibility of the parents, but there are many different ways children can help with repayment.
Did you know?
Parent PLUS Loans are issued to the child and not the parent.
This means that the child has no legal responsibility to repay the debt, and it only appears on the parent's credit report.
Borrower Protections
If the borrower or the child for whom the loan was borrowed dies, the debt is eligible for immediate discharge.
This protection isn't something families want to think about, but it can become really important if tragedy strikes.
Parent PLUS loans are legally the responsibility of the parents, but there are many different ways children can help with repayment.
Repayment of student debt is difficult if you are living on social security. However, low payments and student loan forgiveness are both possibilities.
Borrowers should almost always choose federal student loans over private loans. However, a private loan might work better than a Parent PLUS loan in some circumstances.
Parent PLUS loans work differently than all of the federal loans. Families should understand all of the pros and cons before signing up.