Latest Posts
Home > Ask The Get Out of Debt Experts > My Parents Defaulted on My PLUS Loan And Now My Credit Has Been Damaged. – Melissa

My Parents Defaulted on My PLUS Loan And Now My Credit Has Been Damaged. – Melissa

“Dear Steve,

My parents defaulted on a PLUS loan now my credit has been severely damaged.

My parents took out a PLUS loan for my college tuition. It is now defaulted. I can’t figure out why my credit is now severely damaged when the loan is not in my name or social security number. I am having a hard time just paying back my loans, now theirs as well. Is it legal for my credit to be ruined if the loan wasn’t taken out in my name? Also, if I start a payment plan will my credit still be damaged, or how long will it take to recover? Help!



Dear Melissa,

Hum, odd. Generally PLUS student loans are taken out by either the graduate student or the dependent parent on behalf of the student. Most often we think about PLUS loans as being parent only.

If the loan was solely a parents PLUS loan then I can’t find anything that would make you responsible for that debt.

What I’m afraid has happened here is that your parents served as an endorser or cosigner for your PLUS loan and when they stopped making payments on your behalf, the loan became your responsibility. This could happen if you were a graduate and using a graduate PLUS loan for more advanced studies.

I wonder if the original application was in your name and your parents agreed to pay for it. It’s worth checking on that with the student loan servicing company and try to get some clarity on the specifics of the original loan.

Get some more information and give me an update so I can do some more digging for you.

Get Out of Debt Free Hotline
debt settlement helpstudent loan help

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.


I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.

  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.