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What is a private parent/student loan?

What is a private parent/student loan?

Private parent loans are an option for parents who wish to help their children pay for college without adding to their children’s student loan debt. Unlike some private student loans that allow parents to act as a cosigner or co-borrower, with parent student loans, the parent is the primary borrower.

Can parents take out private student loans?

Luckily, parents can consider taking out parent student loans through the Department of Education or private lenders. These loans require a strong personal credit history and will be taken out in the parent’s name.

Are parent PLUS loans private?

Differences Between Parent PLUS and Private Loan Lender: Parent PLUS Loans are federal student loans. The federal government is the lender. Private student loans are offered by private financial institutions, such as banks and credit unions, states, as well as colleges and universities.

Does a parent PLUS loan go directly to the school?

With your authorization, the school can pay the remaining loan funds directly to the student.

What is the difference between a parent loan and a loan that your parents or guardians cosign with you?

While a parent loan gives full responsibility for repaying the loan to the parent, cosigning gives equal obligation to the cosigner and the borrower.

Does Sallie Mae have parent loans?

Apart from being one of the most well-known lenders, Sallie Mae offers a particularly flexible parent loan. Though their costs are roughly average, you can expect better-than-average repayment terms and customer service.

What is the difference between a student loan and a parent loan?

With private loans, students can borrow as much or as little as needed — whereas federal student loans have annual and aggregate limits. A parent loan can cover 100% of the school-certified cost of attendance, minus other financial aid, or be as low as $1,000.

Is it better to get a parent loan or cosign on a student loan?

Taking out a parent loan It’s always you. Because the loan’s in your name, making payments regularly will affect only your credit score, not your child’s. You won’t have the potential to boost your child’s credit score like you would by co-signing.

Do parents have to cosign for private student loans?

Do parents have to cosign on student loans? If you’re borrowing federal student loans from the Department of Education, the answer is usually no. But if you need a private student loan, you’ll need a cosigner if you can’t meet requirements for income and credit on your own.