Who should pay PLUS loans after graduation- the parents or the grad?

Question

My parents just handed over my 30,000 PLUS loan they took out while I was in school. I didn't even realize they had borrowed that much since I didn't have any control over the money or how it was allocated. I probably wouldn't have taken it out if I knew then what I know now. My parents make 300k a year while I am struggling to make ends meet on 25k a year. Should I have to re-pay this loan because it was my education? Or should my parents have to repay this loan because they ultimately decided to take it out?

Answer 1

The loan was taken out by your parents. They are the ones who signed the papers and took out the loan and they are responsible for payment.

   Time to be an adult and discuss finances with them. For example, you didn't agree to pay for the loan. They make more money than you do ( they most likely have more debt than you) and repayment of this loan should have been discussed before the fact not afterwards.

  Remind them that you are going to be the one who chooses where they live when ther are old and decrepit.  (just joking... sort of)  

It is possible that they are having financial difficulties but you still need to discuss it with them and if you can't afford it, let them know. As I said, the loan is in their name. They can't just hand it to you.

Answer 2

Why wouldn't you have discussed this with them?  Some parents, I just give up....You are both responsible, but if it is in their name - they are responsible even know it's your education - you would have had to sign some sort of promissory note....

Answer 3

OMG!!!

First of all, PLUS loans have to start being repaid immediately after they get it.  Not after you graduate.

Parents take out PLUS loans and they are the ones responsible to pay them back.  Your info and social security number isn't associated with the money at all.   If they don't start making payments within the next 30 to 90 days their credit will be effected and they won't likely qualify for PLUS loans for you next year.

You need to tell them.... and give them the money back so they can save it for next year... unless they want to borrow another 30K for you next year, and the next year, good grief, how expensive is that school... sure hope they keep paying for you!!!

Good luck.