Parents want to sign off school loan

Your parents have 100% legal liability for the debt. PLUS loan stands for Parental Loans for Undergraduate Students. These are federally insured and if they default on them they will find out not so nicely that only they are responsible. Income taxes returns seized, wages garnished without a court order....

I can understand why your parents feel like you should make the payments, since it was your education. If you feel the same way, you can always offer to make the payments every month so that they don't have to.

Thank you SoapLady. My parents got this impression that I could apply for a federal loan to cover my loans and their loan. Basically consolidation by taking out one big loan to cover them all. DebtCruncher, if it was as easy as paying their monthly payments I would. Unfortunately I have my own loans which I'm paying back as well. For an entry level undergraduate, I cannot afford to pay over $1000 a month just in student loans. I can't afford an apartment for that let alone student loans.

I am sorry Brad, I didn't mean to sound flippant.

I guess in light of your response, I only wonder: if you can't afford to make those payments, then why would you and your parents even be trying to get those loans put in your name? I know, they feel you should take over the remaining payments. But are they going to stop paying? I mean, if you take over the loan but can't make the payments, what do you and your parents expect to happen? Are your parents wanting you to get sued for non-payment?

Just let your parents know that consolidating your loans and theirs is not an option....you can only consolidate loans in your name. A PLUS loan is their name only.

No worries, DebtCruncher. I don't want to get into too many personal details about my family life but to touch on it briefly, they have shown no interest in caring for my personal future. I've often wondered about why they have helped me to go to college when it was their idea that I go.

Thank you SOAPLADY. There's no possibility to take out a federal loan to pay off both loans? My parents keep asking about this. I looked and most federal loans seem to be eligible only for students.

No possibility whatsoever. Period. You can only consolidate loans in YOUR name.

Don't want to touch a nerve, but obviously they cared "enough" to sign those loan docs and take responsibility for the repayment of those PLUS loans. The benefit that they are receiving from those loans is that their son got a good education and can go on to do good things in life. Whether they don't care anymore, or whatever the issue is, bottom line is that they're on the hook until those loans get paid off.

Another option to you might be to take out a "personal" loan in your name to pay off those PLUS loans. Generally consumer installment lenders don't care who you pay with the loan proceeds, so it wouldn't matter if they're paying off your parents loans. Although personal loans will be underwritten, and you will need to qualify based on the loan amount, your income and ability to repay, and credit history.