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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I think this is crazy. Why are the parents taking out loans instead of the student? DH had one of these parent plus loans and it was really annoying. The rate was sky high. He went to a state school and basically slummed it through college, plus worked prestigious high paying jobs during the summers. He actually shared a bedroom all 4 years plus shared a bathroom with like 5 guys. But his parents didn't save anything or give him anything for college, so he had to take out a parents plus loan.

His job eventually repaid his student loans, but not his parent plus loans. Those couldn't be rolled in. [/quote]

Federal loans issued to the student have limits.  The freshman year limit is $5500.  If the student needs more money than $5500, they need a co-signer. Remember that students have no income or assets.  If you are the co-signer, your name is on the hook for the loan. [/quote]

A parent plus loan is not co-signed. It is borrowed by the parent solely. The parent is 100% on the hook to pay (and their credit is the one that is dinged of not, wages garnished, etc.) and the child doesn’t have to pay a dime. The loan cannot be transferred to the student/child at any point. [/quote]

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