I understand that parents sign for the loan in the parent plus loan, but I was wondering if after a specific amount of time, like after graduation, could the foot of the bill just be switched over to the student instead of the parents?
I know that there are some private loans where a co-signer can be released after a certain period of time and it becomes the student's sole responsibility. I do not believe there is any provision on PLUS loans for them to be signed over to the student at any point.
These days it really doesn't matter 'who' pays....most of the payments are on-line and can be set up as an auto deduction or an on-line payment by anyone from any bank account or credit card, but the risk will stay with the parents and the amount will stay on their credit report...even if the graduate is making the payments.
My dad says he'll cover half of my four years tuition and then thinks that he can just transfer the account to me once the half has been paid, that is why I was wondering. :/
No, the loan will stay in the name of the person who was approved for it. You can make a separate contract to your parent stipulating that you will pay that loan amount. t o
How much are you borrowing that YOU the child is responsible for?
It sounds like you'll have full Stafford loans (about $27k by graduation). AND, you're supposed to be responsible for paying back half of the Plus loans.
Yes, that might be a bit much and legally he would be responsible. I told my son I would pay his first year stafford, the lowest amount of his 4 years, since his interest rate was lower than my parent plus, but if I couldn't for some reason, he still would have been responsible.
Being online, as previously stated, makes it very easy, with shared passwords, to pay on a loan by anyone.
