How Do I Move the Student Loans My Parents Signed for Into My Name? – Leigh

“Dear Steve,

I graduated college in May 2008 and have been working full time for over 3 years now. I have about $20,000 in student loans in my name ($150/mo) which I ALWAYS pay on time. About 18 months ago my parents “turned over” thier parent loans (for my education) to me. This is an additional $27,000 ($400/mo)! My payments are already as low as possible, based on my income… However, I do not own the parent loans, so I don’t get credit for paying them and have no power to negotiate the repayment terms. I don’t even get credit on my taxes for the thousands of dollars in interest I pay every year. I only make $30,000/yr (before taxes!) and I pay everything myself- rent, phone, utilities, insurance and medical bills. I am frugal, my rent is impossibly cheap, my house is cold, I turn off lights and unplug the toaster… I eat for free whenever possible and I never go anywhere! I have less than $200/mo to spend on food, gas, dog etc.. and I am drowning!

Is there any way to legally take over these loans from my parents so that I can show the bank how much I actually pay every month? I am tempted to STOP paying thier loans and let them deal with it.

Everyone I ask says I just need to make more money…


Dear Leigh,

Now that’s a sucky situation.

Here is the problem. They are not your loans. Your parents might have “turned them over to you” but you are not responsible for them with the lender. Your parents are.

You can certainly contact the Department of Education and inquire about taking them over but since these are not loans in your name I would find it highly unlikely they would allow you to consolidate them into your name.

Hopefully for your loans you are already on the Income Based Repayment (IBR) program.

Do your parents want you to live like this? Are they unable to help you out by paying at least a part of the loans they owe for you?

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

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