<prompt> Human: I graduated after many years of graduate school and Im now working in the health field. Based on a agreement my parents and I made before starting undergrad, they would pay half my school costs, which now amounts to half my student loans. Instead of paying me month by month until half the loan is gone, my dad is considering getting a home equity loan and giving me a lump sum for his half lower interest rates on the home equity loan than student Lon refinancingBut we were wondering, would this lump sum trigger a gift tax, even if he is my consigner? We have read that he might not be liable for gift tax, since is the consigner of my student loans. TL;DR: are consigners on student loans responsible for a gift tax if they make a lump sum payment over the 28000 married gift tax threshold?  <response>: If your father is a cosigner, that means the loan is his just as much as it is yours. He could simply pay the account on his own.That being said, he will still remain a cosigner they wont remove him for paying half, so your father would still be responsible for your half of the loan should you be unable to make payments. Additionally, short of refinancing, your monthly payment would remain the same. It will not decrease after the lump sum payment. 