I’m happy to say I don’t hear this claim often, about children forging their parents name on student loans, but I do hear it enough that I felt it was blog worthy. Parent Plus loan are probably the most victimized loan type.
The Parent Plus loan lists the parent as the primary borrower on behalf of the student. Students generally become familiar with the Parent Place loan when they see it listed on their Awards Letter from school. Awards letters generally outline work-study, scholarships, grants, and loans (such as the Stafford and Parent Plus loans), that students and their parents may qualify for.
Repayment on the Parent Plus loan does not begin until the student is out of school (this repayment change went into effect last summer), so the student could literally take out a loan in the parents name each year without the parent being the wiser until the bill comes rolling in after graduation.
If you fear your student has signed you up for a federal loan and want to check you may contact the Department of Education at 800-433-3243 and request to speak with the borrower tracking department. If you confirm that a loan has been taken out in your name you may contact the DOE’s Office of Ombudsman, as they help resolve disputes and solve other problems with federal student loans. They may be reached at 877-557-2575.
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