<p>My dad is considering taking a 6k parent loan at Cal Poly SLO but we're curious as to how it works. Do I as the student pay for it after I graduate, or does my dad pay for it while I'm at school? I feel as though my dad will be paying while I'm at school, and so, how do the payments for parents loan work? I'm really confused. All help will be appreciated.</p>
<p>Parent loans will be in your dad’s name and paid by him. If your father says that you have to pay of the loan, that is something that will have to be worked out between the 2 of you. However, the loans are in his name, will show up on his credit report and he will be the person who will have action taken against him if they are not paid.</p>
<p>He will have to see the terms of the loan that he is requesting as to whether or not he starts repaying immediately or if he can repay them once you graduate (while the interest accrues).</p>
<p>Unless things have changed, PLUS does allow deferral of payment until 6 months after the student leaves school. But interest charges keep on accruing during that time. THere are payment options. As Sybbie says, these loans are totally your parent’s responsibility. </p>
<p>However, a lot of those private loans that are technically in the student’s name really are the parents’ responsibility as well if they cosign. These are business men/women/ entities and they are very quick to go after the money. A cosigner’s credit can be damaged in short order if payment is not forthcoming on those loans. Also they are not dischargeable, difficult to consolidate and since there are two names on the loan, they stay viable even if one of the borrowers dies. Morbid subject, but could be relevent. My friend’s daughter is free of the huge amount in loans that her very ill father took for her to go to journalism school, when he passed away shortly after she graduated.</p>
<p>Oh, thank you very much for the replies. The clarifications really help and I’ll put it to good use when discussing about it with my dad. </p>
<p>Also another quick question, say he is rejected from getting the Parent PLUS loan, I’ve heard that if that happens, I am guaranteed 4k more in unsubsidized loans. Is that true?</p>