<prompt> Human: Im not trying to sound pompous or anything. I was just curious as to why loans that affect my financial well-being in the end would ever affect them. It doesnt hurt their credit in any way either.  <response>: Well, parents can take out loans for their children for college. There are federal ParentPLUS and private loans. So, yes, if they went down this path then they would be in debt. When you take out a loan, you are in debt to the lender until it is paid back. 