topic Re: Parent Plus loan? in Student Loans

Parent Plus loan?

shyboy — Tue, 15 Sep 2009 18:16:22 GMT

My dad recently took out a parent plus loan on my behave,

My question is, if he misses a payment will that any affect on my credit report/score?

My second question is it possible to defer payments while im in school just like the other student loans that i currently have which are defer until 6 months after a graduate?

Re: Parent Plus loan?

SCF — Wed, 16 Sep 2009 04:55:19 GMT

To your first question, no. The Plus loan is in your father's name, so unless you co-signed on it (which would strike me as very odd, if not impossible), it is his responsibility to repay it and it will only appear on his credit report.

To the second question, I believe yes. Have your father contact his lender, but I believe that my parents were able to do this. They did make interest payments while I was in school, however, to keep that interest from being capitalized into the principal when they did go into repayment.

Hope that helps!

Re: Parent Plus loan?

Anonymous — Thu, 17 Sep 2009 00:41:58 GMT

Parents plus loans can be deferred while you are in school and for 6 months after graduation as long a they were incurred after June 2008. Check on the date though because it may not be entirely accurate. Parent plus loans can also be deferred for a hardship. Interest does accrue but does not have to be paid during the deferral period.

Re: Parent Plus loan?

shyboy — Thu, 17 Sep 2009 01:57:58 GMT

thanks everyone for the responses.

Im going to have my father contact the lender and verify. He did apply for the parent plus loan in 2009 however.

Re: Parent Plus loan?

Creditaddict — Thu, 17 Sep 2009 02:03:00 GMT

I believe Plus loans are usually co-signed by parent, so yes it would effect your credit.

My plus loan is in my name with my moms credit carrying the loan.

Re: Parent Plus loan?

Lyythine — Tue, 22 Sep 2009 05:08:24 GMT

That is incorrect, Plus loans are ONLY in the parents name, which is why, if there is a credit balance, the check is made out to your parent ONLY and not to both parties, which is unlike any other student loan.

I have never seen a parentplus loan with a student as a cosigner or the student as a primary with a cosigner - that is not the idea of a Parent Plus loan.