Ask Brianna: How Do I Help My Parents Pay Off College Debt?

"'Ask Brianna' is a column from NerdWallet for 20-somethings or anyone else starting out," Brianna McGurran writes. "I'm here to help you manage your money, find a job and pay off student loans –– all the real-world stuff no one taught us how to do in college."

"Q: My parents took out loans to pay for my college education and I feel guilty that they’re still paying them back. How can I help?

... Help your parents live a little easier — and soothe your conscience — by looking into payment-reduction options or repaying their loans yourself. In certain situations, refinancing the loans in your name is also feasible.

... Unfortunately, a parent’s federal PLUS loan can’t be reassigned to the student, says Megan Coval, vice president of policy and federal relations at the National Association of Student Financial Aid Administrators. But if you can make room in your budget, consider transferring money to your parent’s bank account each month to lighten their load during repayment.

If your parents are paying off a private loan they co-signed for you, ask the lender about co-signer release, says Whitney Barkley-Denney, senior policy counsel at the Center for Responsible Lending. That means only you will be legally responsible for repaying the loan. Sallie Mae, for example, allows borrowers who meet credit requirements to apply to release a co-signer after 12 on-time payments post-graduation."

NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 8/23/2017

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