Paying Someone Else's Loan

CycloneRanger

I went to college, graduated, got a job, and am relatively stable financially. My father has some debt on my behalf from college (a parent PLUS loan with SallieMae) and I would like to pay this off.

What is the best way to go about this? Can I actually make a payment against someone else's loan? I'm used to paying all my stuff online. I do have a statement here (given to me by my father at my request). Is the best way to do this to just send my dad a check?

MrMonroe

You should discuss it with your father. While paying it off yourself may feel good, his loans have no impact on your credit, and it may be beneficial to his credit if he is paying the loans regularly or ahead of schedule. If he wants to write his own check, hand over the cash to him and let him sort it out. If he does not care, contact whomever is administrating the debt and they will be able to collect directly from you.

I promise you, the collection of dollah-dollah-bills-y'all is not something the administrator will object to, regardless of who is paying.

Thanatos

Generally, like MrMonroe says, it's probably going to be easiest to write your dad a check. However, if it's more than $13,000, there may be tax implications (this would probably be considered a "gift"). It is coming up on tax time right now, so if you or he have an accountant you're talking to anyway, you may want to ask them what the best way to do it is.