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Can Parent Plus Loan Be Transferred To Student?

Can Parent Plus Loan Be Transferred To Student

Yes, Parent Plus loans can be transferred to the student. This transfer process is known as a Direct PLUS loan transfer.

A Direct PLUS loan transfer allows the parent borrower to transfer the responsibility for repaying the loan to the student. This can be beneficial for both parties, as it allows the student to take on the loan repayment while building their credit history.

However, it is important to note that not all Direct PLUS loans are eligible for transfer, and certain requirements and conditions must be met. It is recommended to contact the loan servicer or the financial aid office to explore this option and determine if the loan transfer is possible for your specific situation.

Parent Plus Loans

Parent Plus Loans are not transferable to students. These federal loans are taken out by parents for their child’s education expenses and cannot be transferred to the student’s name. It is the responsibility of the parent borrower to repay the loan.

Parent Plus Loans are a type of federal student loan that parents can take out on behalf of their dependent undergraduate students. These loans are designed to help cover education expenses not already covered by other financial aid. Understanding the intricacies of Parent Plus Loans is crucial before considering this financial option.

Definition And Overview Of Parent Plus Loans:

  • Parent Plus Loans are federal loans acquired by parents to support their dependent undergraduate students.
  • These loans are offered by the U.S. Department of Education to help cover education expenses.
  • Unlike other federal student loans, Parent Plus Loans are taken out exclusively by parents and not in the student’s name.
  • The loan amount can be used to pay for tuition, books, supplies, room and board, and other related educational expenses.
  • Parent Plus Loans have a fixed interest rate, which is generally higher than other federal student loan options.
  • The repayment period for Parent Plus Loans starts once the loan is fully disbursed, with the option to request a deferment or forbearance under certain circumstances.

Eligibility Criteria For Parent Plus Loans:

To qualify for Parent Plus Loans, parents must meet specific criteria:

  • The student must be a dependent undergraduate enrolled at least half-time in an eligible degree program.
  • Unbiased financial eligibility for Parent Plus Loans does not require a specific credit score; however, certain adverse credit history disqualifications apply.
  • Adverse credit history includes bankruptcy discharge less than five years before the loan application, default determination, foreclosure, repossession, tax lien, wage garnishment, or write-off of a federal student aid debt during the past five years.
  • It is possible to appeal a denied Parent Plus Loan application or obtain an endorser to cosign the loan.
  • The parent borrower must be a U.S. Citizen, national, or eligible noncitizen, and must not be in default on any other federal education loans.
  • Both the parent and the student must meet general eligibility requirements for federal student aid.

Pros And Cons Of Parent Plus Loans:

Parent Plus Loans have several advantages and disadvantages to consider before applying:


  • No maximum borrowing limit—parents can borrow up to the total cost of attendance minus any other financial aid received.
  • Flexibility in repayment options, such as income-based repayment plans and loan consolidation.
  • Potential eligibility for loan forgiveness programs for those working in public service or specific professions.
  • No requirement for the student to make payments while enrolled in school.


  • Higher interest rates compared to other federal student loans.
  • Additional loan origination fees that can add to the overall loan cost.
  • Adverse credit history of the parent may impact loan approval or result in a higher interest rate.
  • Parents are solely responsible for repaying the loan, placing a financial burden on them.

Parent Plus Loans can provide valuable financial support for families seeking to cover the costs of higher education. However, carefully weighing the pros and cons is crucial to make an informed decision about this loan option.

Exploring Transfer Options

Parent Plus Loans can be transferred to the student through refinancing options, allowing them to take on the responsibility of the loan. Refinancing can provide the student with more manageable repayment terms and the opportunity to build their credit history.

Can Parent Plus Loan Be Transferred To Student?

If you’re wondering whether a Parent Plus Loan can be transferred to the student, let’s explore the transfer options available and the advantages and disadvantages associated with them.

Transfer Options Available For Parent Plus Loans:

  • Loan consolidation: Parents have the option to consolidate their Parent Plus Loan into a Federal Direct Consolidation Loan. This allows the student to take on the responsibility of repaying the loan, transferring the debt from the parent to the student’s name.
  • Refinancing with a private lender: Some private lenders offer student loan refinancing options that allow parents to transfer their Parent Plus Loan to the student. However, it’s important to carefully consider the terms and conditions of the refinanced loan before making a decision.

Advantages And Disadvantages Of Transferring A Parent Plus Loan To The Student:


  • The student becomes the primary borrower, which can help build their credit history.
  • Transferring the loan may provide the student with a sense of responsibility and ownership over their education.
  • Repayment options available for student loans might offer more flexibility and forgiveness programs compared to Parent Plus Loans.


  • Parent Plus Loans offer certain protections and benefits that may be lost when transferred to the student.
  • The student may face additional financial burden as they become solely responsible for repaying the loan.
  • Private refinancing options may come with higher interest rates or less favorable repayment terms.

Considerations Before Transferring A Parent Plus Loan:

  • Student’s financial readiness: Assess whether the student is financially prepared to take on the responsibility of repayment.
  • Impact on parent’s credit: Consider how the transfer might affect the parent’s credit history and future borrowing capacity.
  • Comparison of loan terms: Review and compare the terms and benefits of the Parent Plus Loan with potential student loan options, both federal and private.
  • Long-term financial goals: Evaluate how transferring the loan aligns with the student’s long-term financial goals and career prospects.

Remember, transferring a Parent Plus Loan to the student involves careful consideration of various factors. It’s important to weigh the advantages and disadvantages before making a decision that best suits your family’s financial situation and goals.

Steps To Transfer A Parent Plus Loan To A Student

Parents wondering if a Parent Plus loan can be transferred to their student can follow these steps to initiate the process. By completing the necessary paperwork and meeting specific criteria, the loan can be transferred, easing the financial burden on the parent.

Requirements And Process For Transferring A Parent Plus Loan To A Student

To transfer a Parent Plus Loan to a student, certain requirements must be met and a specific process must be followed. Here are the essential steps to make the transfer:

  • Determine eligibility: The student must meet the eligibility criteria set by the Department of Education, which includes being enrolled at least half-time in an eligible program and being a dependent undergraduate student.
  • Obtain consent: Both the parent borrower and the student must give their consent to transfer the loan. This can be done by completing the necessary paperwork provided by the loan servicer.
  • Apply for a Direct PLUS Loan: The student should complete the Free Application for Federal Student Aid (FAFSA) to apply for a Direct PLUS Loan in their own name. This application can be submitted online through the official government website.
  • Select a repayment plan: Once the loan is transferred to the student, they will assume responsibility for repaying the loan. It’s important to explore the available repayment plans and choose the one that suits their financial situation best.
  • Start making payments: Once the loan is transferred successfully, the student will start making monthly payments directly to the loan servicer.

Documentation Needed For The Transfer

During the process of transferring a Parent Plus Loan to a student, certain documents will be required to ensure a smooth transfer. Here is the documentation needed:

  • Loan transfer request form: The loan servicer will provide a specific form for transferring the loan. Fill out this form accurately and completely.
  • Proof of student’s enrollment: The student will need to provide documentation showing that they are enrolled at least half-time in an eligible program. This can be a letter from the educational institution or an enrollment verification certificate.
  • Consent forms: Both the parent borrower and the student will be required to complete and sign consent forms, granting permission for the loan transfer to take place.
  • Proof of identity: The loan servicer may require copies of identification documents, such as driver’s licenses or social security cards, for both the parent borrower and the student.

Potential Challenges And How To Overcome Them During The Transfer Process

While transferring a Parent Plus Loan to a student can be a straightforward process, it’s important to be aware of potential challenges that may arise. Here are some common challenges and tips on overcoming them:

  • Lack of communication: Miscommunication between the parent borrower, student, and loan servicer can lead to delays or errors in the transfer process. Ensure that all parties involved are in constant communication and have a clear understanding of the necessary steps.
  • Incomplete documentation: Failing to provide all the required documentation can result in a delay or denial of the loan transfer. Double-check that all necessary documents are complete and submit them promptly.
  • Eligibility issues: If the student fails to meet the eligibility criteria for assuming the loan, the transfer may be rejected. Make sure the student meets all the requirements set by the Department of Education before initiating the transfer.
  • Payment challenges: Once the loan is transferred, the student becomes responsible for making the monthly payments. It’s important to plan the budget accordingly and be prepared to make payments on time.

By following these steps and being aware of potential challenges, transferring a Parent Plus Loan to a student can be a successful and manageable process.

Can Parent Plus Loan Be Transferred To Student?

Credit: www.forbes.com

Frequently Asked Questions Of Can Parent Plus Loan Be Transferred To Student?

Can You Transfer Parent Plus To Student?

Yes, parent plus loans can be transferred to the student.

How Do I Get My Parent Plus Loan Into My Student’S Name?

To transfer a parent PLUS loan to your student, contact the loan servicer and request a loan transfer.

Can I Consolidate The Parent Plus Loan Into My Student Loans?

Yes, you can consolidate a parent PLUS loan with your student loans. It’s a viable option.

Can You Refinance Parent Plus Loans Into Students Name?

Unfortunately, you cannot refinance parent PLUS loans into the student’s name.

Can A Parent Plus Loan Be Transferred To The Student?

No, a Parent PLUS loan cannot be transferred to the student. Only the parent borrower is responsible for repayment.


Transferring a Parent Plus Loan to a student is not possible. This type of loan is specifically designed to be taken out and repaid by parents to help finance their child’s education. While it may seem like a beneficial option to transfer the loan responsibility to the student, it is not an available choice.

However, there are alternative options for the student to explore, such as refinancing the loan in their name or taking out a private student loan. It is important for families to carefully consider the implications and potential benefits of these alternatives before making a decision.

Ultimately, the goal should be to find the most affordable and manageable solution for financing higher education.