People also ask
Can I transfer my Parent’s PLUS loan to my child?
A direct PLUS loan made to a parent cannot be transferred to the child. You, the parent, are responsible for repaying the loan, says the Department of Education’s student loan website . The workaround: Using a private loan refinancing company to bypass the feds.
What is a Parent PLUS Loan and how does it work?
From a student鈥檚 perspective, a Parent PLUS Loan can be a great way to help get their education funded without taking on more debt. (As a family, you can agree that the student will make these payments, but, legally, this is the parent鈥檚 debt , not the student鈥檚.)
Can Parent PLUS loans be refinanced in a student鈥檚 name?
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. For example, SoFi allows parent PLUS loans to be refinanced in the student鈥檚 name.
Can a federal student loan be transferred to a private student?
Federal parent PLUS loans can never be transferred to the student. If you borrow a parent loan for your child鈥檚 education, you鈥檙e the only one legally responsible to repay the debt. Refinance the parent PLUS loan into a private loan in your child鈥檚 name once they can meet the qualifications.