Is it possible to get a Direct PLUS Loan and then transfer it to the student's name later?
Asked by mwrc09This is my second question about financial aid because I'm having trouble finding a loan. I vaguely remember someone mentioning a Direct PLUS Loan later being transferred to the student's name. Is this just consolidation or is it an additional option?
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Answered by Kitenio
I dont think so, Direct Loans are given by the Dept of Education and sometimes they do have their own rules but as far as I know, it cant be transfered. The main signer on this loan is the parent and most of the times the student its not even included on the loan. I used to work for a student loan company and I remember lots of parents that thought that they could transfer the loan later to the student but its not possible. Id suggest the student gets its own loan either Stafford with a cosigner(later with a consolidation the cosigner can be released) or a Alternative Loan(Private Loan:higher interest rates, different terms, not guaranteed by the DOE). Hope this was helpful.
I dont think so, Direct Loans are given by the Dept of Education and sometimes they do have their own rules but as far as I know, it cant be transfered. The main signer on this loan is the parent and most of the times the student its not even included on the loan. I used to work for a student loan company and I remember lots of parents that thought that they could transfer the loan later to the student but its not possible. Id suggest the student gets its own loan either Stafford with a cosigner(later with a consolidation the cosigner can be released) or a Alternative Loan(Private Loan:higher interest rates, different terms, not guaranteed by the DOE). Hope this was helpful.
