How do Parent Loans work in regard to student finacial aid?

Question

Are parents solely responsible?

Answer 1

Yes parents are solely responsible for paying the money back.  They will have to pass a credit check and unlike student loans what get to defer payments for up to 4 years or so while the student is in school a parent loan will have have payments due immediately.  Also if money is left over after the students tuition, room and board is paid the left over amount goes to the parent and not the student.  (been there, done that).

Answer 2

Afraid so - there are alternative loans such as EFS, TFC and Sallie Mae Alternatives but the interest rates are very high.

Parent Loan is the best way to go for interest and you can make an agreement with your child that you can take out the loan in your name but they need to make the payments - legally - it's your butt on the line though.