How to take on my parent's Parent PLUS loan? Is it possible???

Paying for College
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<p>I'm in this odd position where I realized that I don't like my major (animation) and that my skills and drive in the field probably won't take me very far after college. </p>

<p>I've made a huge mistake but I've found another major that I would enjoy much more and that is more practical but, to make my parents happy, they want to me to find a way to get the Parent PLUS loans that they signed for in my name before making the switch. </p>

<p>I have no idea how to do this or if its even possible. If its not possible, should I find a way to take out a large loan of some sort to pay off the 60k of Parent PLUS instead? I'm certainly at a dead end with this major and I need to do everything I can to change this while I can. I feel like I'm completely alone in this situation. Has anyone gone through a process like this with their children?</p>

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<p>No, not possible - here is what it says on the federal student aid web site:

See: <a href=“http://studentaid.ed.gov/types/loans/plus#as-a-parent”>http://studentaid.ed.gov/types/loans/plus#as-a-parent&lt;/a&gt;&lt;/p&gt;

<p>Do you even have the financial ability to make the payments? Some students do take over the payments for their parents after they graduate, if they get a job that pays well enough – so that’s always an option down the line.</p>

<p>But it sounds like you are still in school-- so I don’t see how you would qualify for any loans $60K is a lot for a family to take on. </p>

<p>I would note: it’s an unfortunate situation, but when your parents took on the loan in the first place they should have been aware that it was their responsibility – whether you completed the program you signed up for or not. I guess your post should be an example for other parents as to why they should think twice before taking on a large amount of debt to finance their child’s education. </p>

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<p>Many, many students change majors over the course of their college careers. It is unfortunate that your family doesn’t support you in wanting to switch to a more practical major which you prefer. Won’t many of your credits transfer to your new major? I’d suggest you move forward and try to be as successful as possible in your new major, so you can get a good job and possibly help your family repay debt being incurred in getting your college degree.</p>

<p>If the debt to get your degree will be too high, perhaps you and your family have to consider possibly having you transfer to a more affordable U. Good luck!</p>

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<p>Himom, janefield is not just changing majors – she is opting to leave a 4-year BFA program to get a more practically-oriented degree via a community college. (check the other threads she has started - it’s explained very clearly there). So I can understand the source of the parents’ frustration – I took on a PLUS loan for my son, and he quit college after 2 years – so I have been in a similar spot, though with a much more manageable amount of debt. </p>

<p>But again, I think that parents should really do need to to recognize at the outset that the debt is their responsibility, and that there are no guarantees that their kid will do well in college or complete their degree. </p>

<p>From what janefield has posted, I think her current plan is much more likely to produce reliable employment and income her down the line than her initial college goals. But I can see how it might be tough for her parents to swallow.</p>

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<p>Oh, hadn’t seen other threads. I guess, I have always figured that any education we invest is just that, an investment that we hope for the best with. My S majored in EE & D in cinema. So far, S is doing project management and hasn’t been able to do any engineering (tho we’re glad he has a good job). So far, D has not had any jobs or internships since she graduated. We don’t plan on asking her to refund what we paid toward her college and that doesn’t seem all that reasonable to me.</p>

<p>I got a degree in sociology. Brother got one in hotel management. Neither of us practiced either field at all. Our parents didn’t ask for a refund of the costs they spent on us. We DID go on and get more education and then jobs. I haven’t used my law degree that much but neither parent has asked me for a refund of that either. H majored in accounting but has never practiced it a day in his life–he’s done computers for 45 years. His folks and he were happy, even tho he took 7 years to get his BA!</p>

<p>I do understand it being tough for parents to swallow, but ‘life happens,’ and young people DO change and they realize that the field is’t as advertised or their skill doesn’t line up as they thought, or it’s crazy competitive and they donLt want that life, or many other things. When my kids were in grade school, we heard many expert speakers come to our campus and explain that the average kid will end up having multiple CAREERS in their lifetime. We tried to teach our kids to be lifelong learners and problem solvers, so they could adapt to the changing environment they find themselves in and add value to wherever they are.</p>

<p>In any case, it seems like unless the conditions were laid out ahead of time and both sides agreed to the expectations, it’s a little late to try to get reimbursement of loans the parents decide that now they don’t want to pay for. When we make choices, we all use the best info we can. It makes no sense for PARENTS to agree to take on debt and then later decide they want to shift it over to the kid.</p>

<p>If OP went ahead and got an animation degree and still couldn’t get a career or job that worked out, OP would have to go back to school anyway. Seems like OP has just started going back to school a bit earlier. It really seems to be unfair that kid is suddenly being asked to repay a loan because kiddo realized original field was not so practical.</p>

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<p>Himom, on one of the other threads that janesfield started, she wrote, “These loans are under my parent’s name but I am obligated to pay them back, plus the loan’s interest, since they are not financially able to pay it themselves. There’s also an additional 30k of student loans in my name as well.” </p>

<p>I agree with you that the loans are supposed to be the parents obligation – they were used to finance the college courses that janesfield already attended, so essentially everyone has already received their money’s worth… But it looks like both parents and student took on way more debt than anyone can manage… and none of us know what kind of conversations took place within the family back when the daughter first got admitted to college.</p>

<p>We’re always reading threads on this board in the spring along the lines of, “how can I convince my parents to pay for my dream school?” – and of course on the other end of the spectrum there are some parents who just tell their kids to apply to any school they want, and say, “don’t worry about the money, we’ll find a way no matter what.” – so bottom line, we don’t have the whole picture.</p>

<p>But to me, the bottom line still is: why did the parents borrow more than they are financially able to shoulder in the first place.</p>

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<p>As others have said, no, you cannot take on your parents’ PLUS loans. You can come up with a loan document separately with the terms being that you will pay your parents what they need to pay in PLUS payments, if that makes them feel better. If you are not a full time student at a college recognized by the government as such, some payments may already be coming due, and if your parents and you took out more loans than affordable, then you and they need to discuss the situation with the lenders and see if some forbearance or term extensions can be put into affect. However, you and your parents owe this money, it’s on your credit reports respectively, and if you don’t take care of them, it will hurt your credit, and being that the feds are involved, the recovery measures can be draconian. It can also hurt job prospects for both you and your parents. </p>

<p>Whether your parents can repay the loans or not, they are still responsible for them because those were the terms they signed. So you either assume the payments or owe them separately with the terms being drawn up as exactly as what the PLUS terms are for them. The loans are forgiven upon the death of the parent who signed for that loan, so they do have an insurance feature to them. Cosigned loans are even worse, in that they rarely have that feature, and when a parent dies, the student still owes for the loan and vice versa. </p>

<p>I suggest that the OP discuss with the parent what the reality of the situation is. If the OP is currently in a program that truly directs him/her into an industry that has jobs readily available at good wages, then s/he will be in better shape to pay those loans once the program is complete and the earnings start. With no job or a job that does not pay much, s/he can’t pay the loans. Can’t squeeze money from a stone. If a separate loan document will soothe some waters, then the student can go ahead and draft one. There are some on the internet and the student can add the language that the payments should go along the PLUS loan terms and reimburse parents for anything they end up paying and are obliged to pay. It can be informally done or officially notarized if that makes everyone feel better. </p>

<p>The bottom line is that the parents did borrow more than they were financially able to shoulder on the belief that their kid would take over this loan once s/he had the degree and a job. Many parents do this. Some feel that a college degree is the magic ticket for a great paying job and an investment that will be repaid in dollars. Some get pressured into it. Some just made a dumb mistake. Many, many parents take out loans on the assumption that their kids will complete the course of study, get a paying job and all will be well, and when that plan is aborted, they are left holding the bag of debt, or even if the kids do exactly as planned, the jobs and pay check may not pan out, but those loan obligations are not contingent on that. The payments come due regardless. With PLUS and Direct Loans there is some flexibility in delaying the inevitable, but the price comes in the interest accrued. The meter is ticking. </p>

<p>I agree if the situation is as the OP is stating, that the change in venue may be a pragmatic one, but has a degree been awarded in those 4 years or did the student leave the program part way through for any number of reasons like maybe failing or near failing out? Is it because a degree from that college looking like something that was not going to happen for whatever reason? I would have been very upset with my son with the BFA if he did not graduate with his degree and told me so his last year with some other plan or other, like enrolling in a community college for another career course. In fact, we had some terse conversations his senior years where he was specifically told that he had better get his degree that year, as the family ATM machine for his college costs was hitting the empty level. And I don’t care what more practical field, whether it paid more or was more promising, that he would spin the story to me for—I wanted the danged degree in ANYTHING at that point in time, and then he could go on to community college or where ever he pleased to embark on his next journey. So I don’t blame the parents for feeling dissed. </p>

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<p><<<
But to me, the bottom line still is: why did the parents borrow more than they are financially able to shoulder in the first place.
<<<<</p>

<p>Sadly, this sort of thing happens because:</p>

<p>Kid is begging to go to an unaffordable college</p>

<p>Kid is promising to pay back the loans </p>

<p>NO ONE is “doing the math” to figure out if kid can reasonably pay back these large loans considering what their likely income will be upon graduation.</p>

<p>Sadly, if these loans are too burdensome and the new grad can’t live at home while working, the OP may not be able to pay both loans and living expenses and the parents are going to be faced with either paying or having their credit ruined. The student may truly intend on paying all these loans back, but the realities of modest-pay as a new grad and rent, food, utilities, car, etc, may mean that the loans can’t be paid back.</p>

<p>The parents naively (and thats putting it mildly) never computed how big those loan payments would be on $90k of debt. IF THEY CAN’T pay for $60k of debt, why the heck did they think some young new grad could.</p>

<p>Seriously, some parents need to put on their big boy/girl pants, use a calculator, and say, “no.”</p>

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<p>Some parents make that grave mistake. I have some dear friends who did. For one, it’s been pure disaster. Kid was accepted to a school that was out of range price wise. Way out of range. But the program was a competitive one that did lead to good paying job prospects that are abundant. Even then, IMO, the amount of debt was too much. Not likely even with that nice paycheck, it was going to be easy to pay that nut. It wasn’t that lucrative of a field, but the student was a great, wonderful, talented, motivated student who tended to be very directed and efficient, and I could see why they made the decision to go with it. But then she dropped out of the program for a Philosophy degree, and that should have been the deal breaker. But she loved the school, was doing fine, experiencing all of the goodies there, really the quintessential college student and was ever so happy. But it took an extra year, and the loans were stultifying that were taken out. Not only the full Direct amounts, and Perkins but PLUS and then some private loans too. $90k+ with accrued interest, and then neither parent and student had jobs when the payments came due. Just a disaster.</p>

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<p>We were so completely naive when I was applying for colleges. My parents and I believed in my “dream” but once I started attending college, the reality began to set in. I had no idea how huge of a difference there was between what I want to do and what I want to do for a living.</p>

<p>I started as an Illustrator then switched into 3D Animation and now I am heavily considering a career as a Physical Therapy Assistant. To finish out my BFA, our Parent PLUS loans would go from 60k+ to 90k+. As is, we’d be paying $800 a month for the Parent PLUS loans alone. I also have subsidized and unsubsidized loans of my own. The PTA program I am looking at is actually based in my hometown’s community college (the program started after I graduated HS so this opportunity was not available to me then). I’ve talked to my parents about the situation and their condition for me is to get that 60k in my name before I change colleges. They are only going to sign off on my loans if I keep working on my BFA in animation (which I had already decided that, if I switch, I will take care of my own loans and funds to get through community college). </p>

<p>I don’t think I can afford to stay at my current U any longer though and it doesn’t sound like, from what I’ve read from all of your replies, that there are many ways to meet my parent’s condition. If I fail to make a steady income, my parent’s will have to face the consequences. Even though my parents are greatly discouraging this change, I think I’ll end up putting them into financial ruin if I finish this program. If I change schools without taking care of those loans though, I’m sure my parents will resort to some tough love and pretty much disown me until they are paid off. I am generally passive and easy going so resisting is very unusual in my case. I wouldn’t go against my parents unless I had a very strong reason to. </p>

<p>I just want the best for everyone, especially my family. </p>

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<p>Janefield, is there a state school nearby that can take your credits and give you a BA in ANYTHING in a year or two? I know there are in my area. How close to a BA are you? Perhaps just finishing your degree ASAP would be the way to go. it’s a big slap in the face to your parents that you started out at a 4 year school and you are now staring over at a CC. I know what you are saying, and I agree with your logic, but the fact of the matter is that your parents have been willing to pay for your current college and program, but are not willing to pay for this switch. It’s their money, and their finances, and at the end of the day, their loans. You cannot officially take over those loans. They are NOT transferable. They are federal loans so they are pretty much etched in stone. </p>

<p>My advice to you is to get that danged degree and a job. Perhaps at nursing home as an aide–often openings for that and subsidized training courses to get a CNA. Then you can wiggle yourself into the PT aspect and see if there are any opportunities for getting into a PT assistant program. </p>

<p>Here’s the thing: you may find you hate this too. My son’s SO did. But fortunately the extra courses she took to get into the PT program also were pre req for OT which she liked better and so with a BA in psychology, experience in PT at a rehab facility, then taking some courses for officially going into PT, she was accepted and is currently in a master’s program for OT. 2 year full time program, unfortunately private as she was denied 2 years running from state programs locally. But she’s making it work, working part time, going to the program full, taking out some loans. </p>

<p>Look and see if there isn’t some middle path here. Do try to see how it looks to your parents with the money they put into you. I get it. But I see why they don’t. </p>

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<p>Some CCs allow you to get a 4 year BA/BS with your certificate as a PT assistant or some other field, which would use the credits you earned in your 4-year U plus any new ones you will earn taking courses to get your certificate for PTA or other field that you can qualify for and enroll in.</p>

<p>It is bad when families take on more debt than they can comfortably afford. It is unfortunately way too common, especially when loans are SO easy to get for education but cost so much and take so long to repay. A lot of families have rose-colored glasses and just “hope” everything will work out. Even if it were a perfect world and kid gets desired degree in 4 years, often the job prospects, salary, hours and pay are way below what is required to repay these megaloans!</p>

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<p>The PTA program that I’m looking into is 3 years: 1 for pre-req courses, 1 year of technical courses and another year of hands-on experience. After graduating with an A.A.S., I’d have to pass two state exams (NPTAE as well as a jurisprudence exam) then I would be a certified PTA. It’d be about 8-10k over the course of those three years which, since I always make sure I at least have part time work, I could probably work most of that off while in school.</p>

<p>I’ve been much more skeptical this time around though. When I switched into the animation major originally, I had absolutely no experience or opinions of the field. I was too optimistic when beginning the program. I told myself that it was completely natural to be frustrated and struggling with the classes because I was new but, after saying this to myself over the course of two years, I decided to take a step back and look at what was going on. I now at the very least know the basics but my actual skill in animation compares to that of my fellow freshmen except I have one year left to graduate. This time, I’ve done a ton of research and have reached out to the resources available to me. After going through all of my options, I’ve become pretty confident in PTA as a career but to make sure that this isn’t another animation situation, I’m doing a job shadow in a few days at a PT office.</p>

<p>My biggest issue with my major is that I thought it would be more secure than Illustration. In a way, it is and yet it isn’t. 3D animation and SFX as an industry is going through some really tough times. There needs to be a combination of passion for your art and determination to make it and remain in this field. Otherwise, its mostly based on luck. This article sums up the current atmosphere of the industry if anyone is interested in understanding a bit more. </p>

<p><a href=“When Jobs In The Animation Industry Disappear...”>https://chrisoatley.com/jobs-in-animation-industry/&lt;/a&gt;&lt;/p&gt;

<p>If I had the passion for what I’m doing, I’m sure I’d still be chugging along but I came into this major for money and a bit of creative freedom. I fear that these reasons are going to break me down soon after graduation.</p>

<p>I’m really surprised at how controversial this decision is though. There seems to be no definite true answer as to what I should do. I personally feel like spending the extra 30k would be a waste when I feel such an ominous dark cloud of unemployment pursuing this field. I’d probably try to go to the PTA program in the end anyway so why add another couple years of debt and worry for my family? I will always be an artist whether I have the degree or not. Plus, I don’t even think my parents could handle a single payment as it is which probably scares me just as much as it scares them especially when you know that if I were to die, those loans would be nulled. That is such a haunting thought and, during tough times, far too tempting.</p>

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<p>The bottom line is that your parents have invested into your program and plans, mentally, emotionally, and monetarily. Whether it’s through loans or not, they have paid for your education, and right now that it their condition for continuing to support your education. If they cannot pay for those loans, that’s their problem; it was their choice. You cannot control the actions of others, only of yourself. </p>

<p>Frankly, I had a coming to Jesus, type of talk with my son when it looked like he was not going to graduate in 4 years. I was not happy at all, and made it clear to him that I wanted to see that diploma, in my case, I did not care what the major was, at the end of the 4th year. No, I would not have been happy at all, to put it mildly, if he came up with the idea of dropping out of school and starting a whole other program at community college. I paid for nearly 4 years of college then, and I wanted that diploma and then he could go train to scrub Port a Johns for all I cared, but I wanted him to graduate. In whatever. Out that 4th year.</p>

<p>it’s not unusual, by the way, for kids who have graduated even from some highly prestigious schools and programs to go back to school, to CC to get certificates in whole other fields to find work. I’ve suggested it myself to some kids and parents who are at loose ends. That Bachelor’s usually does come in handy at some time later, but getting one’s foot in the door can be difficult and a certificate in some field where there are jobs can give one a good start in an organization or field, and finding other opportunities once there often happens. </p>

<p>I think your parents want that degree as they have invested that much into it. They’ve been the ones paying–and it 's their choice as to how. </p>

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<p>That’s definitely the case. They want that diploma that we’ve spent so much time and money on but I think they are contradicting themselves by not being able to afford the loans. I would love to get a degree in the arts for them as well as for myself. If there were no consequences, I’d continue happily with my studies but with the pressure of having to pay them back as well as knowing that they absolutely cannot afford to make any payments on the loans themselves changes the priority of the situation. My motive for attending college has changed from an intellectual experience to an economical investment. </p>

<p>If I’m working as a dish washer after college, that financial pressure will be on them and there will only be so much that I can do to help. I care a lot for my parents and I’ve seen the sacrifices and tough decisions that they have made for me throughout the years. I don’t think I could bear to leave them high and dry because of something that I wanted to pursue in high school.</p>

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<p>Some things are very important to some people, and you can’t change that. They’d rather be $90K in debt and have their kid with that diploma. They’ll be paying it off all of their lives, but really, that’s their decision and they know it. You can’t help it if no jobs show up. You can get your degree. You have to look at what’s under your control and what is not. Are you really ready to move out, and go to comm college and need another 3-4 years to get a degree if you even get one, and hurt your parents that way? Really, what you are contemplating at this stage of the game is a slap in their faces. It’s a bit late in this game to be suddenly wanting to start over. </p>

<p>Seriously get a degree, any degree and then find some field, some line of work, some program. It’s really your parents problem to pay back the loans. Yes, it will be tough, but you are not the only one in that situation. You will, in time get some work, get rolling, and can help get the loans stretched out, help pay some, get things in order. You really should get that degree in anything, anywhere asap however. that ends a chapter of your life and you can move on.</p>

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<p>I think I’d be upset also if the kids were within a year or so of graduating and wanted to bail to go to a certificate program at the CC. I agree with the other parents…get the degree…later in life no one will care much what the major was but the degree is important. If after you get your degree you want to try something else, then figure it out at that time. How much more do you have to do to finish your degree - are you close enough that you do it without accruing even larger loans?</p>

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<p>Thank you, this has been such a constructive thread. It has certainly helped me see where they are coming from. Before, it completely baffled me why they would insist that I finish a degree that won’t bring much income.</p>

<p>When I posted this, I was conflicted by whether I should transfer schools to get a more practical career to help pay for loans or continue my education and risk my parents going bankrupt to make them happy. In my mind, it was either I make them unhappy because of my decision or I stay and make them financially unhappy.</p>

<p>When it comes to getting a BFA, I still am very opposed to finishing in 3D animation. Its something that I don’t enjoy at all now and I won’t enjoy later in my career. When I came to this realization, I turned back to Illustration and found out that most of my animation credits would transfer into the program. If I switch into Illustration, I’d be able to graduate at the same time I would graduate from 3D. Illustration is something that will never leave me, whether I am paid, laid-off, or unemployed. Even though illustration won’t pay itself, at least that knowledge would be used and enjoyed.</p>

<p>Before, I had assumed that my parents would be so disappointed if I went back to Illustration but, from everyone’s input, it looks like its much more than just getting a job and paying off your debt. I’ll certainly be talking to my parents about this option soon.</p>

<p>This could be the option that makes everyone happy… my parents would be happy that I would have a BFA within my 4.5 years, it’d be in a field that I’m passionate about, and I could plan on attending a PTA program after graduation since I really do feel like I would enjoy that career. I’d have that stability that I’m looking for and my parents would have that degree that they had invested in.</p>

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<p>The loans are in your parents name, but WHO is supposed to pay them off? YOU or your parents. If the agreement has been that YOU are the one who is supposed to pay the loans back, then racking up another $30k may not be the best idea.</p>

<p>While I agree with the others that you should get your BFA degree, so that you have it, I don’t like the idea of adding another $30k of loans on top of the existing. The BFA degree isn’t going to earn enough to support that much debt. It may be best to cut losses now.</p>

<p>I doubt that the parents are going to disown their child if she changes course. </p>

<p>However, OP…how do you know that you won’t change your mind again?</p>

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<p>Jane wrote, "I don’t even think my parents could handle a single payment as it is "</p>

<p>I’m confused – the payment schedule for PLUS loans begins right away, when the student is still in school Generally the first payment is due around February or March of the freshman year.</p>

<p>Are you saying that your parents opted to defer payment until you finish school? If so, then there is interest being added to the loan, so it’s probably already more than you think it is. </p>

<p>But that could be a reason for your parent’s attitude – if they are looking at a situation where they can defer payments for another year or so while you remain in school, they may be afraid of the bills that will arrive when you quit. That is definitely a bad financial strategy on their part - but I can see why that would make them feel desperate to have you take over the loan.</p>

<p>Is it possible that you and your parents could meet together someone who offers financial counseling? I think you are in a pretty bad situation whichever way you go, but it may be that someone neutral, with a better grasp of the financial issues, can help you at least come to some sort of agreement…</p>

<p>Aside from the payment issue, your parents’ logic is an example of the “sunk cost fallacy” - see <a href=“http://www.skepdic.com/sunkcost.html”>http://www.skepdic.com/sunkcost.html&lt;/a&gt; for a definition. They are thinking, they have paid so much for you to attend college so far, they can’t allow you to quit – even though they seem willing to sign for more loans (and even more crushing debt down the line) if you would continue working toward that animation degree. </p>

<p>I’m thinking that a financial adviser might be able to help them see why that is not a rational approach. It is a very common mistake that most of us make at times - but I agree with you that it will not help your parents for you to continue to attend a school they cannot afford. </p>

<p>You might also want to review the repayment options described here – there may be ways that your parents can significantly reduce the payment amount:
<a href=“http://www.direct.ed.gov/RepayCalc/dlindex2.html”>http://www.direct.ed.gov/RepayCalc/dlindex2.html&lt;/a&gt;&lt;/p&gt;

<p>It’s not good planning – it essentially puts them on path to having a loan that they can never pay off – but it might be an option to at least buy time until you are on a better footing and can afford to help them out more. </p>

<p>Though I think you should also do some research to get a sense of how much a PTA typically gets paid. See <a href=“http://www.bls.gov/oes/current/oes312021.htm”>http://www.bls.gov/oes/current/oes312021.htm&lt;/a&gt; (and keep in mind that the average wage is not the same as a starting salary). </p>