(a)
Co-makers. Two eligible borrowers may take out one loan on
behalf of one student under the Federal PLUS Loan Program. As co-makers, both
borrowers shall meet the eligibility criteria, both borrowers are equally
liable for the repayment of the loan and both must qualify in order for any
special benefits associated with the loan, such as deferment or cancellation,
to be received.
(b)
Co-signers. A borrower may have another party as a co-signer
to a Federal PLUS Loan. The borrower assumes the primary liability and is fully
responsible for repaying the debt. The co-signer is secondary liable. Only if
the person with primary liability fails to honor the repayment obligation shall
the lender attempt to collect from the co-signer. The co-signer does not have
to be an eligible borrower. If the borrower qualifies for a deferment under
§
121.137 (relating to repayment) or
cancellation under §
121.139 (relating to cancelled
debt), the loan is deferred or cancelled. A co-signer who signs the Federal
PLUS Loan Promissory Note is not eligible for deferment or
cancellation.
Notes
The
provisions of this § 121.142 adopted August 7, 1981, effective
8/8/1981, 11 Pa.B. 2760; amended
March 26, 1982, effective 3/27/1982, 12 Pa.B. 1043; amended October 16,
1987, effective 10/17/1987, 17
Pa.B. 4120; amended July 12, 1996, effective 7/13/1996, 26 Pa.B.
3321.
The provisions of this § 121.142 amended under
section 4 of the act of August 7, 1963 (P. L. 549, No. 290) (24 P. S. §
5104); section 1 of the act of January 25,
1966 (P. L. 1546, No. 541) (24 P. S. §
5151); the act of July 18, 1974 (P. L. 483,
No. 174) (24 P. S. §§
5181-5189); the act of July 1,
1988 (P. L. 1259, No. 155) (24 P. S. §§
5191-5197); and the act of June
26, 1992 (P. L. 322, No. 64) (24 P. S. §§
5198.1-5198.7).
