When you take out a parent loan, you are fully responsible for the repayment. Either you or your child can repay the loan, but if a default occurs, it will affect only your credit, not your child’s. That also means your child’s credit won’t benefit positively from on-time payments. In addition, with the SEIU Parent Loan, you have the option to directly control the allocation of loan funds.
When you cosign a student loan, your good credit is helping to secure the loan. You and the student share responsibility for the repayment. Your credit and your child’s credit both will be affected. And all of the private student loan funds will be directly disbursed to your child’s college to cover expenses.