Are you a parent who took out a Parent PLUS loan to help your child pay for college? If so, you may be wondering if you are eligible for student loan forgiveness. The good news is that there are several programs that can help you discharge your Parent PLUS loan debt. In this article, we will provide you with an overview of these programs and explain how to apply for them.
Parent PLUS loans are federal loans that parents can take out to help their children pay for college. These loans are not eligible for the same repayment plans as federal student loans, and they have higher interest rates. As a result, many parents who take out Parent PLUS loans struggle to repay them. However, there are several programs that can help you discharge your Parent PLUS loan debt, including:
Now that you have an overview of the programs that can help you discharge your Parent PLUS loan debt, you may be wondering how to apply for them. The application process for each program is different, but there are some general steps that you can follow:
student loan forgiveness parent plus
Options for relief available to parents.
- Public Service Loan Forgiveness
- Teacher Loan Forgiveness
- Income-Driven Repayment
- Parent PLUS Loan Discharge
- Disability Discharge
- Closed School Discharge
- Bankruptcy Discharge
- Death Discharge
Eligibility criteria and application process vary.
Public Service Loan Forgiveness
Public Service Loan Forgiveness (PSLF) is a federal program that forgives the remaining balance on your Parent PLUS loans after you have made 120 qualifying payments while working full-time in a public service job.
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Qualifying employers:
To qualify for PSLF, you must work for a government agency, a nonprofit organization, or a private company that provides certain public services. A list of qualifying employers is available on the Federal Student Aid website.
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Qualifying payments:
To qualify for PSLF, you must make 120 on-time, full payments on your Parent PLUS loans while working full-time for a qualifying employer. Payments made under other repayment plans, such as income-driven repayment, do not count towards PSLF.
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Applying for PSLF:
To apply for PSLF, you must submit a PSLF Application to the U.S. Department of Education. You can submit the application online or by mail. The application is available on the Federal Student Aid website.
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Timeline:
It typically takes 6 to 9 months for the U.S. Department of Education to process PSLF applications. If your application is approved, your remaining Parent PLUS loan balance will be forgiven.
PSLF is a great option for parents who work in public service jobs and who are struggling to repay their Parent PLUS loans. If you qualify for PSLF, you can have your remaining loan balance forgiven after 10 years of working full-time in a public service job.
Teacher Loan Forgiveness
Teacher Loan Forgiveness is a federal program that forgives the remaining balance on your Parent PLUS loans after you have taught full-time for five complete and consecutive academic years in a low-income school or educational service agency.
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Qualifying schools:
To qualify for Teacher Loan Forgiveness, you must teach at a public elementary school, secondary school, or educational service agency that serves low-income families. A list of qualifying schools is available on the Federal Student Aid website.
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Qualifying teaching positions:
To qualify for Teacher Loan Forgiveness, you must teach in a full-time teaching position. This includes teaching core academic subjects, such as English, math, science, and social studies, as well as teaching special education, foreign languages, and vocational education.
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Applying for Teacher Loan Forgiveness:
To apply for Teacher Loan Forgiveness, you must submit a Teacher Loan Forgiveness Application to the U.S. Department of Education. You can submit the application online or by mail. The application is available on the Federal Student Aid website.
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Timeline:
It typically takes 6 to 9 months for the U.S. Department of Education to process Teacher Loan Forgiveness applications. If your application is approved, your remaining Parent PLUS loan balance will be forgiven.
Teacher Loan Forgiveness is a great option for parents who are teachers and who are struggling to repay their Parent PLUS loans. If you qualify for Teacher Loan Forgiveness, you can have your remaining loan balance forgiven after five years of teaching full-time in a low-income school or educational service agency.
Income-Driven Repayment
Income-driven repayment (IDR) plans are a type of federal repayment plan that allows you to cap your monthly student loan payments at a percentage of your discretionary income. This can make your loans more affordable and help you avoid default.
There are four main IDR plans available to Parent PLUS loan borrowers:
- Income-Based Repayment (IBR): Under IBR, your monthly payments will be capped at 10% of your discretionary income. Your discretionary income is the amount of money you have left over each month after paying for basic living expenses, such as housing, food, and transportation.
- Pay As You Earn (PAYE): Under PAYE, your monthly payments will be capped at 10% of your discretionary income, but your payments will be recalculated each year based on your income and family size. This means that your payments may go up or down over time.
- Revised Pay As You Earn (REPAYE): Under REPAYE, your monthly payments will be capped at 10% of your discretionary income, but your payments will be recalculated each year based on your income and family size. Unlike PAYE, REPAYE is available to all borrowers, regardless of when they took out their loans.
- Income-Contingent Repayment (ICR): Under ICR, your monthly payments will be capped at 20% of your discretionary income. ICR is available to all borrowers, but it is generally less favorable than the other IDR plans.
If you are struggling to repay your Parent PLUS loans, you may want to consider applying for an IDR plan. IDR plans can make your loans more affordable and help you avoid default. To apply for an IDR plan, you must contact your loan servicer.
After 20 or 25 years of qualifying payments under an IDR plan, the remaining balance on your Parent PLUS loans will be forgiven.
IDR plans can be a helpful way to manage your Parent PLUS loan debt, but it is important to understand the details of each plan before you apply. You should also be aware that IDR plans can extend the amount of time it takes to repay your loans and may result in you paying more interest over the life of the loan.
Parent PLUS Loan Discharge
Parent PLUS Loan Discharge is a federal program that allows you to have your Parent PLUS loans discharged (forgiven) if you meet certain criteria.
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Death of the borrower:
If the Parent PLUS loan borrower dies, the loan can be discharged. The borrower’s estate is not responsible for repaying the loan.
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Disability of the borrower:
If the Parent PLUS loan borrower becomes totally and permanently disabled, the loan can be discharged. The borrower must provide documentation of their disability from a doctor.
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Closed school:
If the school that the student attended closed while the student was enrolled, the Parent PLUS loan can be discharged. The borrower must have been enrolled at the school at least half-time and must not have been able to complete their program of study because the school closed.
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False certification of loan eligibility:
If the school falsely certified that the student was eligible for a Parent PLUS loan, the loan can be discharged. The borrower must have relied on the school’s false certification in order to qualify for the loan.
If you believe that you may be eligible for Parent PLUS Loan Discharge, you should contact your loan servicer. The loan servicer will provide you with the necessary forms and instructions for applying for discharge.
Disability Discharge
Parent PLUS loans can be discharged if the borrower becomes totally and permanently disabled.
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Definition of disability:
For the purposes of Parent PLUS Loan Discharge, a disability is defined as a physical or mental impairment that prevents the borrower from engaging in substantial gainful activity (SGA). SGA is defined as the ability to earn more than a certain amount of money per year. The amount of money that defines SGA is adjusted each year by the Social Security Administration.
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Qualifying for disability discharge:
To qualify for Parent PLUS Loan Discharge due to disability, the borrower must provide documentation of their disability from a doctor. The documentation must show that the borrower’s disability is expected to last for at least six months or result in death.
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Applying for disability discharge:
To apply for Parent PLUS Loan Discharge due to disability, the borrower must submit a Parent PLUS Loan Discharge Application to the U.S. Department of Education. The application is available on the Federal Student Aid website. The borrower must also submit documentation of their disability from a doctor.
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Timeline:
It typically takes 6 to 9 months for the U.S. Department of Education to process Parent PLUS Loan Discharge applications due to disability. If the application is approved, the borrower’s remaining Parent PLUS loan balance will be discharged.
Parent PLUS Loan Discharge due to disability can be a helpful option for borrowers who are unable to repay their loans due to a disability. If you are a Parent PLUS loan borrower and you have become totally and permanently disabled, you should contact your loan servicer to learn more about applying for discharge.
Closed School Discharge
Parent PLUS loans can be discharged if the school that the student attended closed while the student was enrolled.
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Qualifying for closed school discharge:
To qualify for Parent PLUS Loan Discharge due to school closure, the borrower must meet the following criteria:
- The borrower must have been enrolled at the school at least half-time when the school closed.
- The borrower must not have been able to complete their program of study because the school closed.
- The borrower must not have transferred to another school or program of study within 120 days of the school’s closure.
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Applying for closed school discharge:
To apply for Parent PLUS Loan Discharge due to school closure, the borrower must submit a Parent PLUS Loan Discharge Application to the U.S. Department of Education. The application is available on the Federal Student Aid website. The borrower must also submit documentation showing that the school closed while they were enrolled.
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Timeline:
It typically takes 6 to 9 months for the U.S. Department of Education to process Parent PLUS Loan Discharge applications due to school closure. If the application is approved, the borrower’s remaining Parent PLUS loan balance will be discharged.
Parent PLUS Loan Discharge due to school closure can be a helpful option for borrowers who were unable to complete their education because the school they attended closed. If you are a Parent PLUS loan borrower and the school that your child attended closed while they were enrolled, you should contact your loan servicer to learn more about applying for discharge.
Bankruptcy Discharge
Parent PLUS loans can be discharged in bankruptcy, but it is difficult to qualify for a bankruptcy discharge.
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Qualifying for bankruptcy discharge:
To qualify for a bankruptcy discharge of a Parent PLUS loan, the borrower must meet the following criteria:
- The borrower must file for Chapter 7 or Chapter 13 bankruptcy.
- The borrower must prove that they are unable to repay their Parent PLUS loan through a hardship discharge.
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Hardship discharge:
A hardship discharge is a type of bankruptcy discharge that is available to borrowers who can prove that they are unable to repay their student loans due to a disability, a low income, or other extenuating circumstances.
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Applying for bankruptcy discharge:
To apply for a bankruptcy discharge of a Parent PLUS loan, the borrower must file a bankruptcy petition with the bankruptcy court. The borrower must also file a hardship discharge application with the court. The court will then hold a hearing to determine whether the borrower is eligible for a discharge.
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Timeline:
The bankruptcy discharge process can take several months or even years. If the borrower is granted a discharge, the remaining balance on their Parent PLUS loan will be discharged.
Bankruptcy discharge of Parent PLUS loans is a last resort option for borrowers who are unable to repay their loans through other means. If you are considering filing for bankruptcy, you should talk to an attorney to learn more about your options.
Death Discharge
Parent PLUS loans are discharged automatically if the borrower dies.
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Who is eligible:
The borrower’s estate is not responsible for repaying the loan. This means that the loan will be discharged even if the borrower has a cosigner.
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Applying for death discharge:
To apply for a death discharge, the borrower’s estate must submit a death certificate to the loan servicer. The loan servicer will then discharge the loan.
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Timeline:
The death discharge process can take several months. Once the loan servicer receives the death certificate, they will typically discharge the loan within 60 days.
Death discharge is a simple and straightforward process. If you are the estate of a Parent PLUS loan borrower who has died, you should contact the loan servicer to learn more about applying for death discharge.
FAQ
If you’re a parent who has taken out a Parent PLUS loan to help your child pay for college, you may have questions about how to repay the loan or if you’re eligible for loan forgiveness. Here are answers to some frequently asked questions:
Question 1: What are my repayment options for my Parent PLUS loan?
Answer 1: You have several repayment options for your Parent PLUS loan, including:
- Standard Repayment: This is the standard repayment plan for Parent PLUS loans. Under this plan, you will make fixed monthly payments over a period of 10 years.
- Extended Repayment: This plan allows you to extend your repayment period to 25 years. This can lower your monthly payments, but you will pay more interest over the life of the loan.
- Graduated Repayment: This plan starts with lower monthly payments that gradually increase over time. This can be a good option if you have a limited budget now but expect to have more money in the future.
- Income-Driven Repayment: These plans cap your monthly payments at a percentage of your discretionary income. This can make your loans more affordable if you have a low income.
Question 2: Am I eligible for Parent PLUS loan forgiveness?
Answer 2: There are several programs that can help you discharge your Parent PLUS loan debt, including:
- Public Service Loan Forgiveness: This program forgives the remaining balance on your Parent PLUS loans after you have made 120 qualifying payments while working full-time in a public service job.
- Teacher Loan Forgiveness: This program forgives the remaining balance on your Parent PLUS loans after you have taught full-time for five complete and consecutive academic years in a low-income school or educational service agency.
- Income-Driven Repayment: After 20 or 25 years of qualifying payments under an income-driven repayment plan, the remaining balance on your Parent PLUS loans will be forgiven.
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Question 6: What should I do if I’m struggling to repay my Parent PLUS loan?
Answer 6: If you’re struggling to repay your Parent PLUS loan, you should contact your loan servicer. Your loan servicer can help you explore your repayment options and may be able to put you in forbearance or deferment if you’re experiencing financial hardship.
Closing Paragraph for FAQ:
These are just a few of the questions that parents may have about Parent PLUS loans. If you have additional questions, you should contact your loan servicer or visit the Federal Student Aid website.
In addition to the information provided in the FAQ, here are a few tips for parents who have taken out Parent PLUS loans:
Tips
In addition to the information provided in the FAQ, here are a few tips for parents who have taken out Parent PLUS loans:
Tip 1: Choose the right repayment plan.
There are several repayment plans available for Parent PLUS loans. You should choose the plan that best fits your budget and your financial goals. If you’re not sure which plan is right for you, contact your loan servicer for help.
Tip 2: Make extra payments when you can.
If you have the money, making extra payments on your Parent PLUS loan can help you pay down the loan faster and save money on interest. Even a small amount of extra money can make a big difference over time.
Tip 3: Consider refinancing your loan.
If you have good credit, you may be able to refinance your Parent PLUS loan at a lower interest rate. This can save you money on your monthly payments and help you pay down the loan faster.
Tip 4: Apply for loan forgiveness if you qualify.
There are several programs that can help you discharge your Parent PLUS loan debt. If you qualify for one of these programs, you can save a significant amount of money.
Closing Paragraph for Tips:
Following these tips can help you repay your Parent PLUS loan faster and save money. If you have any questions about your loan, you should contact your loan servicer or visit the Federal Student Aid website.
By following these tips and exploring the repayment and forgiveness options available, you can manage your Parent PLUS loan debt and achieve your financial goals.
Conclusion
Parent PLUS loans can be a helpful way to help your child pay for college, but they can also be a burden. If you’re a parent who has taken out a Parent PLUS loan, it’s important to understand your repayment options and to explore the various programs that can help you discharge your loan debt.
The main points to remember are:
- There are several repayment plans available for Parent PLUS loans, so you should choose the plan that best fits your budget and your financial goals.
- Making extra payments on your loan when you can can help you pay down the loan faster and save money on interest.
- You may be able to refinance your loan at a lower interest rate if you have good credit.
- There are several programs that can help you discharge your Parent PLUS loan debt, including Public Service Loan Forgiveness, Teacher Loan Forgiveness, and Income-Driven Repayment.
Closing Message:
If you’re struggling to repay your Parent PLUS loan, don’t give up. There are resources available to help you. Contact your loan servicer or visit the Federal Student Aid website to learn more about your options.
Remember, you’re not alone. Millions of parents have taken out Parent PLUS loans to help their children pay for college. With careful planning and effort, you can repay your loan and achieve your financial goals.