Refinancing Parent Plus loan onto my name..

[doobie]

Hi,

When I started college my freshman year, I pretty much had no credit and my mom took out a Parent Plus loan for me for that year (~$30000). I was wondering if it would be possible for me to refinance the loan onto my name as a student loan that would not be due until I graduate.

 

Thanks in advance!

[Saria]

Parent PLUS loans cannot be transferred into the student's name. The only way I can think of to get what you're looking for would be to take out a new loan in your name and use the proceeds to pay off the PLUS loan. This, however, would almost certainly be considered fraud so that's not a recommendation. Not to mention, in today's climate, loans that size are probably getting tougher to come by.

 

I know this doesn't help you, but for anyone else who may be interested, PLUS loans disbursed after July 1, 2008 can now be deferred by the parent until the student graduates, plus a grace period.

[doobie]

Hi,

Thats interesting, loans disbursed before July 1, 2008 are in no way able to be differed?

[Saria]

There are certain circumstances in which she'd be able to postpone payments, like if she's in school herself or if she's unemployed or experiencing economic hardship. She'd need to contact her lender for their exact requirements. Most lenders have this information on their websites.

[doobie]

Its not that. I want to put the loan on my name instead of having it on hers. I would imagine it would leave a dent in her credit if she inquired about such issues?

[Saria]

Its not that. I want to put the loan on my name instead of having it on hers. I would imagine it would leave a dent in her credit if she inquired about such issues?

 

I understand what you want to do, but as far as I know, there's no way to do it. You asked if there was any way it could be deferred, so that's what I was answering. Her asking if the loan can be transferred (I assume that's what you mean by "such issues") won't have any effect on her credit at all because they'll just tell her that it can't be done. The only way her credit would be affected at all would be if she applied for a new loan, but that would defeat the purpose.

[doobie]

Hi Thats not what I meant.

I meant if she asked for the loan to be deterred due to reasons of financial trouble and such, I doubt it would reflect positively on the credit according to that loan.

[LACT]

I was just considering a Parent PLUS loan for my son. Does anyone know the credit requirements? And yes, I read that as well, that I can now defer it to up to 6 months after he graduates! Thanks.

[Saria]

Shouldn't have an impact. I've had student loans in and out of deferments and forbearances for various reasons over the years and I've never seen an effect on my score.

[LACT]

Saria - can you recommend some options for student loans?? I'm at a loss b/c this is my first child going to college and there's so many illegitimate companies out there. Thanks!

[LynnInMN]

Saria - can you recommend some options for student loans?? I'm at a loss b/c this is my first child going to college and there's so many illegitimate companies out there. Thanks!

 

Actually there are not a lot of illegitimate lenders out there for student loans. If your son or daughter has exhausted their federal aid options, you can possibly look to the school for a Parent Plus Loan. The lender will be either the department of education if it is a Direct Plus Loan or it could be a local bank if it is a FFELP school. Talk to the school for information on these. Also the school will be able to direct you or your child to alternative private lenders.

[LACT]

Thank you Lynn! I just placed a call to them to set up a meeting. Have a good day!

[vannie]

I am so happy to hear about the deferment of plus loans until after graduation. I didn't know this.

 

How does that effect the debt to income ratio for a mortgage?

[Saria]

I am so happy to hear about the deferment of plus loans until after graduation. I didn't know this.

 

How does that effect the debt to income ratio for a mortgage?

 

I'm sure the folks over in the mortgage forum could give you info about the treatment of deferred student loans on mortgage applications.