People also ask
Is the student responsible for repaying a Parent PLUS loan?
The student is not responsible for repaying a Parent PLUS Loan. They鈥檙e under no legal obligation to do so. If a parent has an adverse credit history, they must obtain an endorser who will agree to repay it if they don鈥檛. However, the U.S. Department of Education states that the child on whose behalf the loan is borrowed cannot be the endorser.
Do parents have a legal duty to pay for their child’s College?
Parents do not have a legal duty to pay for their child鈥檚 college鈥攚ith one exception. Recently, there鈥檚 been a lot of debate over whether parents should be responsible for their child鈥檚 postsecondary educational expenses.
What happens if a parent doesn鈥檛 contribute to the FAFSA?
Since the FAFSA takes the parent鈥檚 assets and income into account when determining the student鈥檚 eligibility for aid, the student might not have access to grants or federal loans even if the parent isn鈥檛 contributing anything toward his or her education. In this case, the student might have to resort to private loans, which are much more expensive.
Can I refinance my Parent PLUS loan to pay off debt?
The student is then responsible for repayment of the new loan and the proceeds from the new loan pay off the Parent PLUS Loan. If a child is willing and financially able, this can greatly reduce the parents鈥?debt burden. Only a handful of lenders currently offer this type of refinancing, including Earnest, Laurel Road and SoFi.