 TITLE: Do Parent PLUS Loans Affect Your Credit Score? CONTENT: How Can a Parent PLUS Loan Impact Your Credit Score?\n----------------------------------------------------\nA parent PLUS loan can impact your credit similarly to how other student loans and installment loans, such as an auto and mortgage loan.\nUnless the applying parent has an adverse credit history and requires an endorser (similar to a cosigner), the parent PLUS loan will be issued to one parent and only reported to the credit bureaus under that parent's name. Both parents can take out separate parent PLUS loans, but the total loan amount can't exceed the borrowing limit for the year.\nWhen you apply, the associated credit check can lead to a hard inquiry, which may temporarily hurt your credit by a few points, if at all. Additionally, you'll have a new account on your credit report and a new loan that's balance is equal to the original loan amount. These factors are included in the models many credit score calculations use and have the potential to lower your credit scores.\nAs you make your loan payments on time, however, the new on-time payments can help you build credit. Conversely, missing student loan payments can hurt your credit.\nRemember, the parent who takes out the loan is solely responsible for making the loan payments. Some parents make an informal agreement that their child will repay the loan, but a missed payment will still only be reported to the credit bureaus under the borrower's name.\nIf you think you may have trouble affording a parent PLUS loan payment, reach out to your loan servicer right away. You may be able to temporarily pause your payments or switch to a different repayment plan. If you consolidate your parent PLUS loan with a Direct Consolidation Loan, you can even use the income-contingent repayment plan, which bases your payment amount on your income. END