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Responsibility of Parent Plus Federal Loan

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barron4241

Junior Member
Michigan

My dad took out a ($47,000) parent plus loan in his name to help pay for my schooling while I was attending my University. I have been making payments on the loan since it entered repayment. My name is not on the loan. My question is, can he write up some type of contract with me making me legally responsible for the loan? The reason that I ask is that I will have some debt forgiven this year and will have to include this forgiven debt on my taxes as income. It would be nice to be able to use this debt when calculating my insolvency since I have been and will be making all payments on it.
 


Ohiogal

Queen Bee
Michigan

My dad took out a ($47,000) parent plus loan in his name to help pay for my schooling while I was attending my University. I have been making payments on the loan since it entered repayment. My name is not on the loan. My question is, can he write up some type of contract with me making me legally responsible for the loan? The reason that I ask is that I will have some debt forgiven this year and will have to include this forgiven debt on my taxes as income. It would be nice to be able to use this debt when calculating my insolvency since I have been and will be making all payments on it.
Nope. You are not legally responsible for a loan that is not in your name unless you refinance it into your name. Nothing your dad signs will change that.
 

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