Anonymous wrote:What is the reason for financial POA, which allows unscrupulous parents to take out loans in their kids' names?

I understand medical POA and FERPA, although I think they're intrusive. But financial is hard to justify.

Not all POAs would allow someone to take out a loan. And not all POAs go into effect immediately--it could be a springing one that only takes effect if the 18yo becomes incapacitated. In that case it would be useful to be able to pay the kid's bills, use his/her bank accounts to pay for care, deal with insurance, etc.