Parent PLUS loans are the legal responsibility of the parents who signed the promissory note.  Many parents may not have been aware of this financial legal responsibility when you signed for the note.  Some parents may have an arrangement with their child that they will repay the Parent PLUS Loan.  This arrangement is an internal agreement but from a legal standpoint these are parents loans.

The Parent PLUS Loans cannot be consolidated with the student loans.  If you have multiple PLUS loans it is recommended that you consolidate them by student.

Under the PLUS loan repayment plan the only option is to extend the repayment time frame.  This will increase the amount you need to repay but it may allow you to manage the payment versus defaulting.  If you default on your Parent PLUS Loan may impact your social security in retirement.  There are a few advantages to the PLUS loans since they are federal loans.

Unlike the student repayment methods the parents repayments are limited.  Extension of time is the only major repayment advantage.  Listed below are other items explained in this video:

  • Financial Responsibility
  • Repayment options
  • Advantages of the Federal PLUS Loan
  • Prepayment Advantages


For more information on other Education Loan Repayment please visit our resource section.  If professional advice is needed PLease give us a call.