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Why should a parent borrow from a Federal PLUS loan instead of a co-signing on a private loan which is in the students name?

April 26, 2017borrow co-signing Federal loan parent Plus private students

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Why should a parent borrow from a Federal PLUS loan instead of a co-signing on a private loan which is in the students name?

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A. Federal Parent PLUS loans are part of the Federal Student Aid Program. Parents who co-sign on a Private loan are just as responsible for repaying the loan (usually at higher rates) as the student if the student fails to make payments. In other words, whether the borrower or co-borrower both the Federal PLUS loan and the Private loan appear on a credit report and the financial responsibility is the same. Q.