@Anonymous wrote:
@SCF wrote:
@Anonymous wrote:
Sorry, but what do you mean, SHE's paying off the loan. I see that you're making the bulk of the payments, but still, YOU are the morally responsible party. And I see you have a Discover card with a CL that would cover the $10.5k. Call up Discover right now and get a BT at $0 for 15 months and get your Mom some peace of mine.
Parent Plus loans exist explicitly for parents to borrow money for their children's education. The money is borrowed solely by the parent - the student doesn't have to know any of the details or give their consent. The parent is told explicitly that the debt belongs to them alone when they sign the dotted line. The only moral, legal or other obligation a student has toward a Parent Plus loan is specific to whatever agreement (if any) they make with the parent.
It sounds like Mom and student had one put over on them here by Dad, which is too bad, because that could have been avoided by learning about the loan before agreeing to it. It also sounds like student is honoring their agreement with Mom by making the extra payments. Taking a relatively low interest debt that has borrower protections (loan is cancelled if parent or student pass away, it can be consolidated and put on an income-based payment plan based on Mom's income, payments can be deferred in some circumstances) and putting it on what it is likely a high interest credit card is just another poor decision.
This is exactly my point. I wasn't even 18 yet when I was accepted or started at the school. I didn't know anything about it let alone that it was in my mother's name until started talking to my mom about paying off my nursing school loans. I kept wondering why when I would try to log into the website to see the info, I had to put in my mother's information instead of mine. I didn't know it was a Parent Plus loan until recently when I was trying to help refinance it for a lower rate and the company told me they don't help with Parent Plus loans. Even though we both work, trying to pay off $10,500 in 15 months would put even more stress on us (especially my mother who is the head of household). At the moment, we are able to put $400-$500 each month towards it which is more than the minimum. If we can get a lower interest rate on the loan, then at least more of our payments can go towards the actual priniciple and not interest.
Got it. Puts a new light on things. I'm glad your Mum thought enough of investing in your education to do that without your knowledge. And I'm equally glad that you think enough of her sacrifice to try to unburden her. I'm a Mom and a student, so I "get it" from both sides of the coin.
