Parents are not liable for repaying federal student loans taken out by their child, even though families are required to list both the student’s and parent’s information when filling out the Free Application for Federal Student Aid (FAFSA).

However, parents are liable for student loans that they co-sign, including private student loans. There’s also a type of federal student loan, called a parent PLUS loan, that holds parents responsible for repayment since it is taken out by parents in the first place.

Whether parents are liable for student loans depends on the type of loan. Federal student loans, parent PLUS loans, and private loans each have different terms regarding financial responsibility. Let’s look at each loan type in more detail.

Federal Student Loans

Students who want to borrow for school with federal student loans start the process by filling out the Free Application for Federal Student Aid (FAFSA). This form helps the federal government, states, and institutions of higher education determine what kind of federal aid a student is eligible for and how much. Submitting the FAFSA is required if you want federal student loans.

Generally, parents are not liable for repaying federal student loans taken on by a student. This includes direct subsidized loans, direct unsubsidized loans, direct PLUS loans made to graduate or professional students, direct consolidation loans, and Perkins loans.

Parent PLUS Loans

Rules are a bit different for parent PLUS loans compared to other federal loans. These federal student loans are taken on by parents of dependent undergraduate students to cover the cost of higher education.

Unlike most federal student loans for students, parent PLUS loans require a credit check. The borrowing parent, not the student, is responsible for these loans and they can’t pass that responsibility onto the student when they graduate, according to the Consumer Financial Protection Bureau (CFPB).

Private Student Loans

With private student loans, financial responsibility lies with the person who took out the loans. For example, loans taken out by students on their own are the sole responsibility of the student when it comes to repayment.

Since private student loans require a credit check and often have strict requirements for approval, many students need a co-signer to get the funding they need. That’s when parents can become liable for repaying student debt. If a student applies for private student loans with a parent as the co-signer, both the student and the parent are financially liable for repayment of the debt.