 TITLE: Can You Transfer a Parent Student Loan to a Child? CONTENT: Pros and Cons of Transferring a Parent Student Loan to a Child\n--------------------------------------------------------------\nDepending on the situation, having your child refinance your parent loans in their name can have a lot of benefits. For starters, it can free up a lot of cash flow you can use for other needs.\nNearly 1 in 5 student loan borrowers contribute nothing to their 401(k) plan, according to Fidelity. While lacking retirement savings is a problem for all generations, it's more urgent for parents who have less time to catch up.\nTransferring parent student loan debt to a child can make it easier for parents to prepare for retirement, pay off debt and achieve other important financial goals.\nIt also removes the debt from your credit reports, which reduces your debt-to-income ratio. If you're planning to apply for credit—especially a mortgage loan—reducing your debt load can give you a better chance at getting approved.\nThat said, if your child just graduated, they may not have the credit history or income to qualify to refinance the debt in their name. If your child doesn't meet the requirements, it might be necessary for you to cosign the application. This means the debt will still be on your credit reports, and you'll still be responsible for paying it if your child can't.\nAlso, if the loans are parent PLUS loans, the child won't have the same benefits that you get through the federal loan program, including access to student loan forgiveness programs, income-based repayment plans and generous deferment and forbearance plans. END