Transferring Parent Loans to a Student Explained

Transferring Parent Loans to a Student Explained

Helping pay for a college education is a huge goal for a lot of parents. This may lead to Parent PLUS Loans. This article explains how you can transfer this loan to the student.

Parents often take out student loans to help their children — but may eventually want to transfer Parent PLUS loans to the student or to transfer private loans to students in order to avoid ongoing financial responsibility for the debt.

The good news is that this is possible — but figuring out how to transfer private loans or a Parent PLUS loan to the student can be more difficult than it seems. Here’s what you need to know about making the switch, so children become responsible for student loan debt that their parents originally took on.

Can Parent PLUS Loans be transferred to the student?

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Parent PLUS Loans are federal student loans from the Department of Education. When a parent has taken out PLUS Loans, they are responsible for covering the debt in the eyes of the government.

Unfortunately, the government does not allow these federal loans to be transferred into the child’s name. So, the technical answer to the question can parent PLUS loans be transferred to the student is not through the payday lenders in Cabot Arkansas federal system only through refinancing with private loans (see below for explainer).

This is potentially the best option to make children responsible for repaying these PLUS Loans. In some cases, it’s possible for a student to take out a private student loan refinance loan to repay the federal Parent PLUS Loan. The student must qualify to do that, though, and there could be some downsides.

How to transfer Parent PLUS Loan to student

If a student wants to take legal responsibility for the debt, the only way to transfer a Parent PLUS loan to the student is to refinance with a private student loan lender.

Not all private lenders allow this, so it will be important to shop around for one that does Splash, for example, does offer this ability to transfer loans from the parent’s name to the student . (more…)

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