Some private lenders will let you transfer a student loan to a parent by refinancing it in their name. But federal loans for students have lower interest rates and better benefits than loans for parents. It may not make sense to refinance student loans just to transfer ownership to a parent.

Can my parents take out a student loan for me?

Parents can borrow for their children’s education in a variety of ways. Beyond PLUS Loans, parents sometimes take out private student loans as well. Once again, in most cases these are in the parent’s name, or the parent is a cosigner on the student loan. Either way, the parent is 100% responsible for the debt.

What kind of student loan can I get as a parent?

As a parent, you can choose a federal or private student loan. While federal loans are usually a better option for students, the federal PLUS loan might not have an advantage over private parent loans.

Can a child take out a student loan in their own name?

In most cases, it’s best for the child to take out the loan in his or her own name, both because loan terms for students are usually more flexible and because if the parent cannot keep up with the loan payments, it could make it difficult or impossible for them to save for their other financial goals.

Which is better federal or private parent loans?

While federal loans are usually a better option for students, the federal PLUS loan might not have an advantage over private parent loans. Since parent PLUS loans carry the highest interest rates of any federal student loan, you might be able to save money by applying for private parent loans instead, especially if you have strong credit.

Can a parent cosign a child’s student loan?

Allowing parents to cosign their children’s student loans is common. However, if you’re looking for a loan that won’t add to your child’s student debt, you’ll want to find lenders that offer loans directly to parents.