People also ask
Can a parent take out a PLUS loan for a student?
When a parent takes out a PLUS loan for a student, they are legally responsible for the debt. Though a PLUS loan can鈥檛 be transferred to a student as a federal loan, there are private lenders that will allow a PLUS loan to be refinanced in the student鈥檚 name.
Can you transfer a student loan to a parent?
Some private lenders will let you transfer a student loan to a parent by refinancing it in their name. But federal loans for students have lower interest rates and better benefits than loans for parents.
How does Parent PLUS refinancing work?
Through Parent PLUS refinancing, existing parent student loans may be able to be consolidated and refinanced into one new loan, ideally at a lower interest rate. A better rate might allow you to pay less interest over the life of the loan鈥攁nd if you also shorten your loan term, you can potentially get the loan paid off more quickly.
Is a Parent PLUS Loan a co-signer loan?
If you鈥檝e ever co-signed for your child on a loan, this may feel similar. But, a Parent PLUS loan is not a co-signed loan. It鈥檚 made to the parent for their child鈥檚 education. Unlike the federal student loans taken out by students themselves, parent borrowers must pay an origination fee for each Parent PLUS loan.