Actually, Grad PLUS loans require a credit check. If the student did not pass the credit check, a cosigner would be needed in order to get the Grad PLUS. In that case, the parents would be wise to say no to cosigning … the only students I have had who were declined for Grad PLUS were very poor at handling money. The others were able to rectify their credit issues and get an override. Those who are already in a financial hole are a bad risk for a cosigner. (Of course, my own belief is that you should never cosign a loan … if you really want to help someone borrow, better you should borrow yourself, lend the money, and have the person repay YOU. When you cosign & the borrower doesn’t repay, your credit gets destroyed. Oh, and if you are doing this, you should fully expect you’ll never be repaid & be happily surprised if you are.)