Jan 27, 2026
It’s one thing for a dad to support his son’s college education. It’s another to leave your adult child on the hook for a $70,000 student loan you take out on their behalf without telling them.
Bill called into The Ramsey Show in exactly this situation. He told a flabbergasted Jade Warshaw and Ken Coleman that his father secretly took out a $70,000 student loan on his behalf under the Direct PLUS Loans for parents program.
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“This is so messed up,” Warshaw said (1).
Bill’s father convinced him that the $70,000 was made up of university “grants” and student aid that covered his tuition.
It wasn’t until Bill received an email from his uncle, who’d co-signed for the loan, that he learned the truth — and that he was $70,000 deeper in debt than he’d believed.
Bill, who now enjoys a $90,000 salary as a fast-food manager, said if his father had told him the truth, he would have continued living at home instead of moving out. That way he could have saved more money to pay down the debt.
Bill did not consent to the loan. He also missed periods during the pandemic where he could have paid down the debt with lower interest.
Warshaw feels Bill’s dad should share responsibility.
“If it were me, I'd be having a serious conversation, and at the very least I'd say I'm paying half of this because I didn't know about it,” Warshaw advised.
Hidden student debt can accrue interest
Even when a student loan isn’t in your name, it can still become your responsibility when your parents fail to pay it down.
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The interest on federal student loans is based on the type of loan. Unsubsidized and PLUS loans accrue interest as soon as loan repayment starts, generally after the six-month grace period upon graduation.
Balances can grow quickly if the payments don’t cover interest, according to Federal Student Aid (2).
While Bill is in an exceptional circumstance due to his father’s deception, he’s one of many Americans experiencing anxiety over student loan payments.
The Consumer Financial Protection Bureau (CFPB) found that billing errors, customer-service failures, and incorrect repayment information are widespread in student loan servicing.
The bureau notes that these issues have caused “severe financial and personal distress” among borrowers (3).
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There’s no easy way out of this situation. There are some student-loan forgiveness plans, but they’re rules-heavy.
According to Federal Student Aid, eligible borrowers who work in public service and have already made 120 qualifying payments may qualify for the Public Service Loan Forgiveness (PSLF). More rules around that program go into effect July 2026 (4).
The Trump administration has moved to end the Save on a Valuable Education (SAVE) student loan program, which allowed for income-based repayments. Interest on SAVE loans started accruing Aug. 1, 2025 — and the number of months of repayments required for forgiveness spiked (5).
Meanwhile, those who are paying down student loans through the Income-driven Repayment Plan (IRP) may also qualify for forgiveness, but ongoing changes to the plan are making it difficult for some borrowers to navigate (6).
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How to get clarity on what you owe in student loans
Even if you aren’t in Bill’s situation with a student loan you didn’t even know about, it’s good to get clarity on what you owe so you can pay down your debt effectively.
Here are some steps to take to ensure you pay exactly what you owe, not more, not less:
1. Log in to your Federal Student Aid account.
Check your account at studentaid.gov to review your loan types, balances, and servicers
2. See if there are any outstanding Direct PLUS loans.
Make sure you have access to the loan servicer’s account. Paperless notices can be sent to the parent’s email, so the child may not have complete visibility on loan repayments.
Request screenshots or statements. Direct PLUS Loans for parents are legally parents’ debt, even if they agree the student will pay.
3. Watch for servicing errors and misinformation.
The CFPB found that issues in payment processing and inaccurate bills can harm borrowers in the long-run.
4. Be vigilant about student-loan 'relief' scams.
Student-loan “relief” scams are on the rise. The FTC has pursued cases involving fake forgiveness promises and issued refunds to harmed borrowers. (7)
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Ramsey Show (1); Federal Student Aid (2, 4); Consumer Financial Protection Bureau (3); The Institute for College Access and Success (5); JP Morgan Chase (6); Federal Trade Commission (7)
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Monique Danao is a highly experienced journalist, editor and copywriter with 8 years of expertise in finance and technology. Her work has been featured in leading publications such as Forbes, Decential, 99Designs, Fast Capital 360, Social Media Today and the South China Morning Post.
