Are Parents Responsible For Student Loans?

Getting a loan seems much easier than paying it back. Students’ major aim is to be able to fulfill their academic achievements without running into debt. However, every parent must sponsor their children’s education. Student loans are a lot scary for parents and much scary for students. Let us see are Parents responsible for student loans.

Are Parents Responsible For Student Loans?

Yet, having the responsibility of paying for a child’s expenses at college is daunting. It could mean saving up for one’s retirement or a good paycheck. But, if a parent takes a loan, they are responsible for it. Likewise, if a student takes a loan, he/she is responsible for it.

Are Parents responsible for student loans?

Co-signing for a student loan or taking full responsibility for payment is not obligatory for parents. However, no law states parents should be responsible for student loans. Yet, if a parent cosigns on a loan with their children, they are responsible for the payments. Even though it’s almost impossible for students to cater for their expenses. Parents might sign for the loan but it is not important and necessary.

Parent Plus Loans are loans that are the sole responsibility of the parent. Loans like the Federal Student Loans (FAFSA) and Private student loans are obligations of the students. 

Do you want to know if parents are responsible for student loans and more? This guide has more information about that. Keep reading.

Benefits Of Parents Co-Signing Loans With Students

Parents are still obliged to contribute to their child’s school expenses. They can do so in various ways. It is the best option for parents who want their children to succeed. Fathers and mothers of students take it upon themselves to fulfill their children’s dreams. However, Co-signing loans with students has both advantages and disadvantages. That means both parents and students need to talk it through. The benefits are discussed below.

It is noted that students who involve their parents get a better deal. Lenders are rest assured that they would get their money back. It makes them look more serious. It also allows the other party to approve easily. This is because the parents are seen as a guarantor to the students. The lender knows who to hold responsible. Still, with the involvement of parents, students are not scared.

However, parents can take full responsibility for the loan. They can pay the loan in full before it is due. Yet, most of the parents are financially capable with a good credit score. This makes the student exempt from the loan. However, the parent too can be removed from the loan earlier when paid.

Students can get lower interest rates. This is because of their credit score. Yet, parents have far more credit ratings than their children. When a parent shows their credit rating while co-signing, it assures the lender to give other benefits.

Co-signing loans with parents gives students a good credit rating. This boosts their credit rating in the future. It also boosts their self-esteem. Getting a loan with one’s parents gives way to further loan opportunities.

Disadvantages Of Parents Co-Signing Loans With Students

Students’ inability to pay loans could risk their parent’s ability to obtain credit in the future. Parents could also be unable to get any financing too. This would give the parent a bad credit score.

Parents would take total responsibility for the loan if the student defaults. This is because the law makes it mandatory for both parties to be responsible. Nevertheless, the bond parents share with their children can’t be taken for granted. Yet, the parent pays whether convenient or not.

If a student defaults, it is automatically the parent’s responsibility to pay for it. However, if both parties can’t pay; the parent and student. It would affect the parent’s recommendation. If at any time, something about financing happens in the future, the parents’ image has been ruined. Hence, care must be taken to ensure payment.

Parents who fail to pay up the loans will put their children at several risk. These children won’t be able to get financial aid from the institution. Still, this would prevent them from benefiting from any Federal and State financial support.

Ways of Taking Loans By Students Without Co-signing With Parents

Firstly, it is almost impossible to get a student loan without a parent’s credit history. One needs to fill in the parent’s information. However, it is possible if a student registered as an independent student or even as a dependent student. Below are several ways students can take student loans without their parents.

1. Federal Student Loans Applied Through  Free Application for Federal Student Aid (FAFSA)

One can apply for federal student loans as an independent student. However, most students are considered to be dependent. That means they rely solely on social support from their parents. According to the educational department, federal aid assumes that parents are ready to take charge of the student’s school expenses. The FAFSA takes the parents’ credit information and assets when students fill out the form. They check for eligibility for those who filled out the form as a dependent student. However, Federal student loans applied through FAFSA do not hold the parent responsible for the loan. Below are the steps:

2. Fill Out The Complete Free Application for Federal Student Aid (FAFSA) Form

The FAFSA form is a major step in enabling a student eligible for a federal student loan. The FAFSA requires one to fill in the parent’s information as a dependent student. However, the parent credit history would have been taken into consideration. If the student is independent, it might not be needed. However, applying through FAFSA does not obligate the parents to pay for federal student loans.

The FAFSA form can also be submitted under the following criteria. This means the dependent student does not need the parents’ information.

– Students who are homeless and older than 21 years of age.

– Students who are in abusive families.

– Students who are orphans and not adopted.

3. Ensure You Get a SAR

A students Aid Report (SAR) is obtained after the successful completion of the FAFSA form. The SAR must be checked for accuracy. The form has all the information of both students and parents. What the SAR does is calculate the financial support of a student. Yet, if the finances can’t cover the student expenses. The student can apply for a federal student loan without involving the parents.

4. Parent PLUS Loan

This type of loan can be assessed when the FAFSA is filled. Parent plus loan is an addition to the federal student loan. It is called a federal parent-plus loan. It is accessed by the parent and can be borrowed by them. Parents take the loan with the intent to help their children with college expenses. However, there are no specific requirements for this loan. The parents are solely responsible for the payment of the loan. If there is a delay in the payment, it only affects the parent. Delay of the payments also only affects parents’ credit rating and history. 

5. Private Student Loans

This type of loan does not necessarily require a co-signer. Yet, some lenders want assurance they would get their money back. It doesn’t necessarily mean the parent. If one decides to look for a lender, this is appropriate. These loans are not sponsored by the government. However, students need to meet the criteria of those lenders. Students and their co-signer are only responsible for this.


In most cases, students rely solely on their parents for their well-being and college expenses. Parents also are expected to be responsible for their children’s welfare at the college. But when it comes to loans, it depends on both parties. If the parent co-signed with the student, then the parent is obliged to pay. However, no law states that a parent can’t help the student out. But the parent doesn’t need to do so. Yet, there are other means by which the student can obtain a loan without 


Can Independent Students Apply And Get Approved For a Federal Student Loan?

Yes. Independent students who meet the criteria can apply for it. Moreover, it depends on the category the student falls into.

Is The Parent Responsible For The Private Student Loan?

No. Parents are not responsible for private student loans. Private student loans are not government loans. Students go out of their way to get a lender with fewer requirements. Students and their co-signers are responsible for it.

Are There Loans That Are Solely For The Parent?

Yes. The federal Parent Plus Loan. It is an addition to the federal student loan. The parent is solely responsible for the payment of the loan.

Are There Any Other Options Through Which a Student Could Get Financial Support Without The Parent?

Yes. Students might not always need their parents to get financial support. However, students are meant to have a federal student loan as both dependent and independent students. This is government financial aid for students. However, students can also request installation payments at the college.