Who is responsible for student loans?

Generally, there are two types of student loans—federal and private. Federal student loans and federal parent loans: These loans are funded by the federal government.

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In this way, can a parent take a student loan for their child?

Parents can borrow for their children’s education in a variety of ways. … Beyond PLUS Loans, parents sometimes take out private student loans as well. Once again, in most cases these are in the parent’s name, or the parent is a cosigner on the student loan. Either way, the parent is 100% responsible for the debt.

One may also ask, does the government give student loans? Subsidized federal student loans are only offered to students with a demonstrated financial need. Financial need may vary from school to school. For these loans, the federal government makes interest payments while the student is in college.

Likewise, people ask, will my parents be responsible for my student loans?

When the time comes to start making payments, only the student is obligated to repay these loans — not the parents. In fact, there’s no co-signer. If the student defaults on a federal student loan, it will affect the student’s credit and won’t be reported on the parent’s credit history.

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