What's the difference between a Student loan and a Parent loan?

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Last Updated: June 30, 2022

Parent Loan:

A Parent loan is money a student’s parent or guardian borrows to help pay for school. The loan is entirely in the parent’s or guardian’s name and they are taking full responsibility for repaying the loan. Like other student loans, a Parent loan is used to cover college-related costs, such as tuition, supplies, or room and board.

Undergraduate or Graduate Student Loan:
When an Undergraduate Student Loan or Graduate Student Loan is cosigned, it is in both the student and cosigner's name. As a cosigner, you’re taking equal responsibility with the student and are providing your financial background to help guarantee that the loan will be paid back. A Parent loan, on the other hand, makes you the sole borrower on the loan.

 

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