The best reaction to: can parents be held responsible for student loans?

Generally, parents are not held responsible for their child’s student loan debt unless they co-signed on the loan or took out a Parent PLUS loan.

Complete answer

According to the latest US laws, parents are not held responsible for their child’s student loan debt unless they co-signed on the loan or took out a Parent PLUS loan. However, it is worth noting that some private lenders may have different policies. If the parents co-signed or took out a Parent PLUS loan, they are equally responsible for repaying the debt. If the student is unable to make payments, the lender can hold both the student and the co-signer responsible for the outstanding balance.

A quote from Forbes adds further context to this issue: “While parents may not be responsible for their child’s student loans, the obligations could still impact their financial situation. If a parent co-signed a child’s student loans or obtained a Parent PLUS loan, those debts are legally the parent’s responsibility and are included in their overall debt-to-income ratio.”

Here are some other interesting facts on student loans:

• The total student loan debt in the United States is over $1.7 trillion.
• The average student loan debt is around $37,000 per borrower.
• Over 50% of college graduates in the US have student loan debt.
• Federal student loans make up around 92% of all student loans in the country.
• Student loan debt cannot typically be discharged in bankruptcy, with a few exceptions.

To summarize, parents are generally not responsible for their child’s student loans, unless they have co-signed or taken out a Parent PLUS loan. It is important for parents and students to communicate and fully understand their financial obligations before taking out any loans.

Table:

Situation	Responsibility for Repaying Debt
Parent co-signed on loan	Parent and student
Parent took out Parent PLUS loan	Parent
Student took out loan alone	Student
Parent and student took out loan jointly	Both parent and student

Watch related video

In the video “What Everyone’s Getting Wrong About Student Loans,” John Green explains that average student debt amounts can be misleading. While 65% of graduates with loans have an average debt of $28,000, the average debt for any borrower is actually $39,000. This is because graduate school loans, particularly for law and medical school, significantly contribute to the total debt amount. Additionally, 40% of students with loans do not receive a degree, and often face financial pressures that lead to dropping out and struggling with loan delinquency.

Many additional responses to your query

Parents are generally not responsible for their child’s student loans. However, if a parent cosigns on a loan, they can be held responsible for it if the student can’t make their payments. Parents are also responsible for Parent PLUS loans, which are extensions of the FAFSA.

Generally, parents are not responsible for their child’s student loans. However, if a parent cosigns on a loan, they can be held responsible for it if the student can’t make their payments. However, parents are responsible for Parent PLUS loans, which are extensions of the FAFSA.

Parents are not held responsible for repaying any of these federal student loans, only the student is. Parents are also not required or allowed to cosign on federal student loans for their child.

I’m sure you will be interested

Keeping this in consideration, Are parents responsible for student loans?
No, parents are not responsible for student loans. Parents are not responsible for paying their children’s student loans. One exception would be if the parents had cosigned a private loan for the child and the child stopped making payments.

Also, Do parents have a legal responsibility to pay for college?
Parents don’t have a legal responsibility to pay for college, but there are financial and non-financial ways in which they should help their children. After many years of helping families with their student loans, I’ve had the privilege of working with people from all walks of life.

Accordingly, Can parents cosign on student loans for their child?
Parents are also not required or allowed to cosign on federal student loans for their child. Parents ARE allowed to cosign on a private student loan for their child, in the case of private student loans that a parent cosigns for their child, the parents can be held responsible for those loans should the student default.

Consequently, Who is responsible for a federal Parent PLUS loan? With a Federal Parent PLUS loan, the parent (s) is completely responsible for the loan and not the student, however there is no obligation for parents to take out a Federal Parent PLUS loan; it is simply an additional option in the Federal Student Loan Program offerings.

Also to know is, Are parents legally responsible for student loans?
Answer: However, no law states parents should be responsible for student loans. Yet, if a parent cosigns on a loan with their children, they are responsible for the payments. Even though it’s almost impossible for students to cater for their expenses. Parents might sign for the loan but it is not important and necessary.

Correspondingly, What happens if a student can’t repay their loans?
Students’ inability to pay loans could risk their parent’s ability to obtain credit in the future. Parents could also be unable to get any financing too. This would give the parent a bad credit score. Parents would take total responsibility for the loan if the student defaults.

Also to know is, Can parents cosign for student loans?
Co-signing for a student loan or taking full responsibility for payment is not obligatory for parents. However, no law states parents should be responsible for student loans. Yet, if a parent cosigns on a loan with their children, they are responsible for the payments. Even though it’s almost impossible for students to cater for their expenses.

Are parents responsible for student loans if they co-sign? However, no law states parents should be responsible for student loans. Yet, if a parent cosigns on a loan with their children, they are responsible for the payments. Even though it’s almost impossible for students to cater for their expenses. Parents might sign for the loan but it is not important and necessary.