Are parents responsible for student loan debt?
Are parents responsible for student loan debt?
The student just needs to complete a Free Application for Federal Student Aid (FAFSA). A parent PLUS loan can’t be transferred to the child. In other words, the parent borrower is legally responsible for the loan. Some families will create a side agreement for repayment.
Can a minor take out student loans?
You do not need to get your parents to cosign your federal student loans, even if you are under age 18, as the ‘defense of infancy’ does not apply to federal student loans. (The defense of infancy presumes that a minor is not able to enter into contracts, and considers any such contract to be void.
Can a minor be responsible for a debt?
Children aren’t typically responsible for debt incurred while they are minors because they cannot legally enter into a contract. There are life and legal circumstances that free children from parental dependence and makes minors responsible for their debts.
Who is legally obligated to pay for their child’s College?
The short answer is, parents whose marriage is intact are not legally obligated to pay for their child’s college. Parents who are divorced may or may not be legally obligated depending on the terms of their divorce settlement and their state of residency.
What does it mean when a child is protected from debt?
This is called emancipation, and the laws governing it vary by state. Though children are protected from lawsuits and collection attempts, there are often serious financial consequences for minors who’ve incurred debt or failed to protect their credit.
Can a parent refuse to pay for college?
This can put the student in a difficult position if the parents refuse to pay for their child’s cost of college.
Children aren’t typically responsible for debt incurred while they are minors because they cannot legally enter into a contract. There are life and legal circumstances that free children from parental dependence and makes minors responsible for their debts.
The short answer is, parents whose marriage is intact are not legally obligated to pay for their child’s college. Parents who are divorced may or may not be legally obligated depending on the terms of their divorce settlement and their state of residency.
This is called emancipation, and the laws governing it vary by state. Though children are protected from lawsuits and collection attempts, there are often serious financial consequences for minors who’ve incurred debt or failed to protect their credit.
This can put the student in a difficult position if the parents refuse to pay for their child’s cost of college.