Submitted by CaliforniaMemer t3_yyrs1o in personalfinance
Long story short, I have $26,000 in student loans under my dad’s name since they are Parent Plus loans. He convinced me to take the loans out and go to university instead of community college, and I regret doing so. I don’t think he’s very good with finances, and he’s pretty stubborn about his own knowledge of it. In the past year, my dad has wanted me to privately reconsolidate the loans under my name so he can refinance his house (I don’t live there.) This would mean I’d be ineligible for any student loan forgiveness. He says that it has to happen before he can refinance. Due to the student loan forgiveness, we’ve tabled this discussion since in theory this would wipe those loans. I have the Pell Grant under his name, hence $20,000 would be wiped.
However, he’s become convinced that the forgiveness is not going to happen since it’s being held up in court and he wants me to get them out of his name/pay it off ASAP. I have about $10,000 in savings that I could use to pay this down, but I don’t know if this would be refunded to me. I’m not sure what to do here, and he’s pretty adamant on this. What I’m looking for here is information.
- Does removing those loans from his name actually improve his chance of getting a lower mortgage rate?
- If I pay it down, would I get that money back?
- Anything I can use to convince him consolidating is a bad idea.
Thank you, any advice would be helpful.