Parents of student evaluating a PLUS loan for student, high school class of 16. 1 parent not interested in co-signing for any debt. If other parent cosigns for a loan or gets a PLUS Loan, and then the cosigning parent dies or the parents divorce, is there a way to stipulate that the PLUS Loan stays with the cosigner and is not an asset/liability of the marriage? In this case the parents disagree about taking on debt at their age. Yes, looking at lower COA, etc. but looking at general options if couple were to separate.
The Parent Plus is a loan to only one person. State laws might require that the debt is part of the marital estate and whether one spouse, or ex-spouse, is liable for the debts of the other or if only the assets of the individual can be used, and if the laws do require spouses to be responsible for the other’s debts, there is nothing you can do to change that.