signature on parent plus loan

A parent plus loan does sometimes require a cosignor. So if both parents signed, both are responsible.

Repayment plans for plus loans are a little more limited. Contact your lender or look on their website for options.

I only signed, not my wife. But it was based on both of our incomes. Basically, are both parents respondsible for repayment seeing how we are both her parents? Or does just one parent get stuck with it?

Only the parent who signed for it is liable for it.

I've been researching it and can't find an absolute answer as to whether or not they could go after my wife since she isn't the one who signed.

Information off our joint return was used on the FAFSAs, joint assets were listed, etc., but she never signed. So, they can't touch her if I default? Really?

Read the post above yours...pretty straight forward

Thank you for your quick response.

Can you provide some more information for me to look at that concerning it? It seems too good to be true but I hope it is true. Please don't think I'm being argumentative. It is just a matter of time before I default on a whole lot of Parent Plus loans (unless some property sells in this horrible economy) and I want to make 100% sure they can not touch my wife with garnishment. We might be able to get by if they have to leave her alone because I'm the only one who signed. The company I work at is doing so poorly right now I'd be happy for things to turn around so well that there would be income of mine to garnish.

Why would it be too good to be true. It is contract law 101.

Call your lender if you dont want to believe me.

I do want to believe you. It just seems too good to be true that if I end up having to default they wouldn't go after my wife's pay too even if she didn't sign since they are her kids, too.

Thanks for your help.

I have close to $190,000 in parent plus loans from over the past several years. I'd based being able to pay some 2/3 to all of it on being able to sell some investment property. Not only has the economy made such a sale unlikely for years to come, it has ruined my chances to keep up with plus pymts of some $1500 per month. I've thought about doing a consolidation and going ICR. I'm also afraid it will drag my wife into it. She never signed for any of the plus loans. It appears if I default on the plus loans, the most they can get is to garnish 15% of my own pay and not be able to touch my wife's. If I default, what can they REALLY do to me, my wife, our assets, etc. 15% of my pay isn't really that much anymore and wouldn't mind seeing them garnish me if that is all they can do. Would this debt die with me?

I merged your newest question.

What they can do to your wife has already been answered.

If you default and are garnished, do not expect to see a tax return. They will garnish you your wages and your social security.
FEMA benefits other than food and water will be denied.
With a balance this high, expect to be sued. That will allow for higher wage garnishment, bank account seizure and property leins.
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I would highly suggest consolidating...

It appears the numbers might be more doable if we consolidate and have 25 year ICR. Part of getting ICR is disclosing income information, perhaps the 1040 each year, for the two of us. Does that open my wife up to any liability? We need to keep it to where I'm the only one that can get in trouble.

No your wife still would have no liability...they have an interface with the IRS which will update them yearly as long as you are on the ICR.

Ever thought of getting the students you borrowed these fund for involved in paying them back???

Wife still isn't liable? Cool. It seems that PLUS loans die with either me or the student they were borrowed for. What about the consolidated loan?
As for the students helping to pay, the one that is out is taking over the Stafford loan part but she still has in school deferment since she is working on her Masters degree. There may be more later on. All of us are working on some ways to free up some cash.