Can You Transfer a Parent PLUS Loan to a Student?

The Parent PLUS loan is a vehicle for parents to take out a loan through the federal government to assist their child in paying for their college education. Once a parent takes out this loan, can they transfer it to their child? The short answer is no. This loan is exactly what its name says, a PARENT loan; it is NOT a student loan. Once a parent applies and accepts this loan to be applied to their child’s college education and it has been disbursed, this loan is the parents and parents alone. This type of loan cannot be transferred to the student.

What Is a Parent PLUS Loan?

A Parent PLUS loan, also referred to as a Direct PLUS loan, provides the ability for a parent to borrow up to the cost of attendance (tuition, room and board and miscellaneous expenses, which include personal expenses, books and travel) at the institution that their child attends. In order for a parent to apply for this loan, their child needs to have completed their FAFSA, where the student and parent need to have created an FSA ID Username and Password.

When Do You Have to Start Paying Back a Parent PLUS Loan?

Although the Parent PLUS loan is set up that the borrower needs to begin paying back this loan immediately upon disbursement, there is a vehicle to defer payments while your child is in school. In addition, the parent can ask for an extended deferment of six months after their child stops attending college full time.

How to Apply for a Parent PLUS Loan

To apply for a Federal Parent PLUS Loan, the parent and student must first complete and submit the FAFSA. You must also know which school the child will be attending. Then, the parent needs to complete the PARENT PLUS Loan application. Typically, a parent can begin completing this application for a specific school in the April/May time frame of their child’s senior year in high school or prior to the fall of when your child will be attending college

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