What Happens if a Parent Does Not Repay a Direct PLUS Loan

My question involves collection proceedings in the State of: California

Hello,

I was the student and my father was the PLUS loan borrower. All loans taken out in the year 2010 or later (if it matters).
My questions are:
What happens if my father stops paying the Direct PLUS loan for a short length of time?
What happens if my father defaults on those loans?
What happens if my father consolidates the PLUS loans and then does the defaults on that?

I would like to know both the effects on my father and on me.

Thank you for the information!

p.s. I am completely lost as to whether or not the title pre-fix is appropriate. sorry in advance.

When you default on a loan, the creditor can take action to collect the money you owe. That's true even if you consolidate your loans. You can also expect that you will have trouble getting credit for the foreseeable future.

If you're not the borrower or cosigner, even if the loan was taken for your benefit, somebody else's default is not going to affect your credit.

Is there any way to consolidate the parent's PLUS loans with any of my other loans (student or private loans)?
and/or
Is there any way to better my own credit by paying off the parent PLUS loans?

If you want to find ways to consolidate your loans, I suggest researching lenders that offer consolidation loans. That's not a legal issue.

If you're not a borrower, a loan should not appear on your credit report.

I was wondering about the legalities of attempting to consolidate a loan that is not in my name and not cosigned by me.
but thank you for the info. very helpful.

I doubt that a student loan consolidator would include in your consolidation loan a loan that is not in your name, but I've never looked into the issue. I suspect that if you want to refinance that loan, you will have to obtain some other type of financing.

What happens to the PLUS loans in the event that the parent dies or becomes severely disabled?

Te estate is responsible or the person still is.

Quote:

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Quoting Disagreeable

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Te estate is responsible or the person still is.

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Dont know what "te estate" means... what does that literally mean? his property?
Does that mean that the PLUS loan has no chance of becoming my personal responsibility or affecting me adversely later on down the road if I stop worrying about it completely now?
Will I inherit these things?
I am afraid that it will come and bite me in the future when I am least expecting it.

Sorry, I have disabled hands and cognitive issues. Sometimes my brain says I hit a key and I didn't. I try to catch it the best I can. You are not responsible for any loans you did not sign/cosign for. The estate of dad, in other words, whatever assets of his left, are due to pay off the loan if possible. It is the court appointed executors responsibility to handle it. If he is married, mom might be on the hook to pay also.

Quote:

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Quoting zero2805

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Dont know what "te estate" means... what does that literally mean? his property?
Does that mean that the PLUS loan has no chance of becoming my personal responsibility or affecting me adversely later on down the road if I stop worrying about it completely now?
Will I inherit these things?
I am afraid that it will come and bite me in the future when I am least expecting it.

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A person cannot inherit their parent's debts.

However, I will put this in a very simplistic way...

The will says that "son" gets everything and "son" is the executor of the will.

Son has to sell off all of the assets of dad's estate, and pay off all the creditors. If there is anything left over after doing that, son gets the amount left over. If there is not enough to pay off all the creditors...that is not son's problem as long as son followed the rules as to which creditors had priority.

Or, in the alternative, if dad dies without a will and son believes that dad was insolvent, son is free to refuse to deal with dad's estate. If son believes that there is enough that there would be something left over, then the son should apply to be executor/personal representative and must follow the rules.

Anything that passes outside of the estate...anything with a beneficiary, is not involved in the "rules".