April 15, 2010

Can a Parent PLUS loan be transferred?

Posted in Parent PLUS Loans at 1:57 PM by plusloans


One question we get a lot regarding Parent PLUS loans is whether or not the payments can be transferred to a child. The answer, sadly, is no. Parent PLUS loans are federal-based loans taken out by the parent in his or her name, and will remain so throughout the duration of the repayment.

However, as a parent, there are options if you are unable to pay, or expect you will be unable to pay back a PLUS loan.

If you have yet to take out a PLUS loan, you might be better off applying for a private student loan if you are concerned about being unable to make payments in the long run. With a private student loan, you can apply to be released from the loan after a set number of consecutive payments and have the remaining sum transferred to the student.

If you are parent who has already taken out a PLUS loan, you could establish a payment plan with the student, whereby the parent pays the loan back directly to the lender, and then the student reimburses the parent.

Do you have any other questions about the Parent PLUS loan? Post them in our Financial Aid forum!

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10 Comments »

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  2. Arletha said,

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  3. LeeinPA said,

    I have been reading some of the online info, some of it says that you “Can” transfer the Parent Plus loans to your child’s name *After a series of consecutive on-time principal payments, the student may apply to have the cosigning parent released. Then full responsibility for loan repayment will be transferred entirely to the student. SO – how do you go about doing this, and……how will this affect the student when he goes to obtain a car loan …..or business loan………..???????????????????????????????????????????????????????????? I’m soo frustrated with this crap !!!, Parent Plus loans are to help our children get ahead,, but as myself, getting older, I can’t stock money away for when I retire…what’s up with this? We all want the best for our children and using the Government for loans, they should take in consideration what we as parents are doing, and 7.5 – 8.5% cut me a friggin break !!! Its the Government, it should be 2-3% and then maybe people could afford to pay them back !!!! Tell the President, we have to do something to help ourselves !!!!! MR. PRESIDENT PLEASE UNDERSTAND AND HELP US OUT WITH OUR FUTURE CHILDREN AND WITH OLDER ADULTS PAYING FOR THEIR EDUCAITON !!

  4. Jerry said,

    JUst updated my blog with an interesting post.

  5. Jerry said,

    Nice info, am digging it.

  6. K Driskell said,

    I have taken a Parnet Plus loan for my sons college. There are two loan each at 8.5% interest is there a way to consolidate these loans and with who ? It is said that this payment is more then both of my auto loans. The econemy is bad and we have heard nothing on lower interest rate on these Federal loans.
    Please help
    thanks
    kdriskell

  7. […] full post on Student Loan Info for Parents Categories : student loan Best Daily Loan Tips Copyright © 2010 All Rights […]

  8. Jackie maue said,

    I am making monthly payments on parent loans for my kids. I am 57 years old and would like to know if there is a lower interest rate I can get. Also, I have co-signed student loans for my daughter and she isn’t paying on them. She has probably $200,000 out on loans herself and is ignoring these. Is there anything else I can do? The loan company calls and sends me letters weekly. I am about to lose my mind. i have talked to her about this to no avail.

    • Stanley Cooper said,

      Jackie, unfortunately there isnt many ways out of that bind. If the $200,000 in loans is in her name, the only thing you can do is talk her into possibly consolidating, but since those are not federal loans there is next to no programs of assistance for that, as for your parent PLUS loan, they have lowered their approval standards to almost nothing. I hate to be the bearer of bad news, but student loans are basically impossible to receive assistance with, only if your child begins teaching, gets a job with the federal government, or joins the military could you receive assistance. unfortunately, these loans are setting families up for financial hardships because the desperation for interest and default profits has resulted in letting anyone get a loan, no matter how much they can, or intend to pay it off.

      all you can really do is strap up and grind it out until its paid off.

      • Kenny Goodman said,

        I have a question about Stanly Cooper’s reply on receiving assistance for the parent “only if your child begins teaching, gets a job with the federal government, or joins the military could you receive assistance” Where can I find info on this?

        Thanks


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