Whether parents are liable for education loans to their kids depends on the type of loan. Parents are not responsible for Stafford student loans but they are responsible for Parent Loans for Undergraduate Students or PLUS loans. Both types of loans are guaranteed by the federal government and issued by banks, other lenders and the government itself.

Parents are not responsible for Grad-PLUS loans, which are taken out by graduate and professional students.

Parents are not liable for private education loans unless they co-sign or guarantee the loan for the student. Some lenders let parents take their names off the loan, thus releasing them from liability, after some number of on-time payments. For more on student loans, go to http://finaid.org/loans/.