 TITLE: Should You Apply for a Parent PLUS Loan or Private Loan? CONTENT: How Do Parent Student Loans Impact Credit?\n------------------------------------------\nWhether you borrow money from the federal government or a private student lender, the impact student loans have on your credit is mostly the same. The only difference is that private lenders will run a hard inquiry on your credit report to assess your creditworthiness, which can temporarily decrease your credit score by a few points.\nEither way, parent student loans can represent large debts. Mismanaging either type of loan could have serious credit consequences. To maintain your credit scores, it's crucial that you make your payments on time every month. If you can't, reach out to your lender for some solutions to try to avoid a negative mark on your credit report.\nAlso, keep in mind that if you cosign a student loan with your child, it can have the same impact on both your and their credit histories if they miss a payment.\nOn the flip side, if you make all your payments on time, it can help improve your credit score over time.\nFinally, once your child graduates, you will have the option to refinance the loans in their name and shift responsibility to them. Keep in mind, though, that both you and your child must be on board to transfer the debt. END