The parents are responsible for repayment on these loans, not the student. Loans to parents are not a 'cosigner' loan with the student having equal accountability. The parents have signed the master promissory note to repay the loan and, if they do not repay the loan, their credit rating will suffer. Also, parents are advised to consider what their monthly payments will be after borrowing for four years at this rate (initial loan documents will give the repayment schedule as if only one year of loans was taken out). What sounds like a "manageable" debt load of (for example) $200 a month from freshman year loans can mushroom to a much more daunting $800 a month by the time four years have been funded through loans. Borrowing is not free, and the more borrowed, the more expensive it is. Additionally, PLUS loans consider credit history, making it more difficult for low income parents to qualify.