Parent PLUS

[meliot]

What is the name of your state (only U.S. law)? IA

We took out Parent PLUS loans for our daughter's education with the general understanding that she would pay them back when she graduated. There was no formal agreement made, nothing was ever written down, but we took out the loans for our oldest son as well with the same understanding, so our daughter knew what the arrangement would be.

She has now graduated, and due to a number of circumstances, has stopped speaking to us.

I know that a Parent PLUS loan is a parent's responsibility; however, we did have an understanding of sorts. Do my husband and I have any legal grounds to get our money back?

 

[Just Blue]

What is the name of your state (only U.S. law)? IA

We took out Parent PLUS loans for our daughter's education with the general understanding that she would pay them back when she graduated. There was no formal agreement made, nothing was ever written down, but we took out the loans for our oldest son as well with the same understanding, so our daughter knew what the arrangement would be.

She has now graduated, and due to a number of circumstances, has stopped speaking to us.

I know that a Parent PLUS loan is a parent's responsibility; however, we did have an understanding of sorts. Do my husband and I have any legal grounds to get our money back?

A "general understanding" is not legally binding. So...No. You have no legal grounds to get your money back.

 

[meliot]

Thank you, baystategirl.

Does it matter at all that we sat down with her about once a year to show her the loan statements? The last time we sat down with her, she openly acknowledged that it would take a long time to pay back.

And as an aside, if we had originally had her sign something saying she would pay us back (and we didn't), would it have been enforceable given the nature of a Parent PLUS loan?

 

[Ohiogal]

Thank you, baystategirl.

Does it matter at all that we sat down with her about once a year to show her the loan statements? The last time we sat down with her, she openly acknowledged that it would take a long time to pay back.

And as an aside, if we had originally had her sign something saying she would pay us back (and we didn't), would it have been enforceable given the nature of a Parent PLUS loan?

It could have been HOWEVER that depends on various things and the banks would not honor it. You would still be responsible for it on your credit.