Do Parent PLUS Loans Qualify for PSLF?

When it comes to paying for college, many students and families turn to federal student loans to help cover the costs. One type of federal student loan is the Parent PLUS Loan, which is available to parents of dependent undergraduate students. These loans are issued directly to the parent, not the student, and the parent is responsible for repaying the loan.

The Public Service Loan Forgiveness (PSLF) program is a federal program that forgives the remaining balance of federal student loans after 120 qualifying payments have been made while working full-time in public service. This program is available to both students and parents who have taken out federal student loans to pay for their education or their child's education.

So, do Parent PLUS Loans qualify for PSLF? The answer is yes, Parent PLUS Loans are eligible for PSLF, as long as the borrower meets all of the program's requirements.

do parent plus loans qualify for pslf

Yes, Parent PLUS Loans can qualify for PSLF, but there are conditions that must be met.

• Qualifying employment: Work full-time for a public service employer.
• Qualifying payments: Make 120 on-time, full payments while working in public service.
• Loan type: Parent PLUS Loans are eligible, as well as other federal student loans.
• Income-driven repayment: Borrowers must be on an income-driven repayment plan.
• Apply for forgiveness: Submit a PSLF application after completing 120 qualifying payments.

If you meet all of the PSLF requirements, the remaining balance of your Parent PLUS Loan will be forgiven.

Qualifying employment: Work full-time for a public service employer.

To qualify for PSLF, borrowers must be employed full-time by a public service employer. This includes:

• Government agencies at the federal, state, local, or tribal level
• Public elementary and secondary schools
• Public colleges and universities
• Nonprofit organizations that provide public services, such as hospitals, museums, and libraries
• AmeriCorps and Peace Corps

To be considered full-time employment, borrowers must work at least 30 hours per week or be considered full-time under the employer's definition of full-time employment.

Borrowers can work for multiple public service employers, as long as they make 120 qualifying payments while working full-time for public service employers.

If you are not sure if your employer qualifies as a public service employer, you can check the PSLF Help Tool on the Federal Student Aid website: https://studentaid.gov/manage-loans/forgiveness/public-service

Once you have determined that you work for a qualifying employer, you will need to certify your employment annually to continue making progress towards PSLF. You can do this by submitting an Employment Certification Form to your loan servicer.

Qualifying payments: Make 120 on-time, full payments while working in public service.

To receive PSLF, borrowers must make 120 qualifying payments on their loans while working full-time for a qualifying public service employer.

• On-time payments: Payments must be made on time each month, no later than the due date.
• Full payments: Payments must be in the full amount due, not just a partial payment.
• Payments made under an income-driven repayment plan: Payments made under any income-driven repayment plan count towards PSLF, as long as the borrower is working full-time for a qualifying public service employer.
• Payments made during deferment or forbearance: Payments made during deferment or forbearance do not count towards PSLF, unless the deferment or forbearance was granted for military service, a natural disaster, or other qualifying reasons.

Borrowers can track their progress towards PSLF by logging into their account on the Federal Student Aid website: https://studentaid.gov/

Loan type: Parent PLUS Loans are eligible, as well as other federal student loans.

In addition to Parent PLUS Loans, the following federal student loans are eligible for PSLF:

• Direct Subsidized Loans
• Direct Unsubsidized Loans
• Direct Consolidation Loans (as long as the underlying loans were eligible for PSLF)
• Federal Family Education Loans (FFEL) (including FFEL Stafford Loans, FFEL PLUS Loans, and FFEL Consolidation Loans) that have been consolidated into a Direct Consolidation Loan

Perkins Loans and private student loans are not eligible for PSLF.

Income-driven repayment: Borrowers must be on an income-driven repayment plan.

To qualify for PSLF, borrowers must be on an income-driven repayment plan. This means that their monthly loan payments are based on a percentage of their discretionary income, rather than a fixed amount.

There are four income-driven repayment plans available:

Borrowers can switch to an income-driven repayment plan by contacting their loan servicer.

Once borrowers are on an income-driven repayment plan, they must make 120 qualifying payments while working full-time for a qualifying public service employer in order to receive PSLF.

Borrowers who have Parent PLUS Loans and are working in public service should consider consolidating their loans into a Direct Consolidation Loan and then applying for an income-driven repayment plan. This will allow them to make progress towards PSLF on their Parent PLUS Loans.

Apply for forgiveness: Submit a PSLF application after completing 120 qualifying payments.

Once borrowers have made 120 qualifying payments while working full-time for a qualifying public service employer, they can apply for PSLF.

To apply for PSLF, borrowers must submit a PSLF application to their loan servicer. The PSLF application is available on the Federal Student Aid website: https://studentaid.gov/manage-loans/forgiveness/public-service

Borrowers will need to provide the following information on the PSLF application:

Borrowers can also submit the PSLF application through their loan servicer's website.

Once the PSLF application is submitted, it will be reviewed by the Department of Education. If the application is approved, the borrower's remaining loan balance will be forgiven.

Borrowers who are unsure if they qualify for PSLF or who have questions about the application process can contact their loan servicer or the Federal Student Aid Information Center at 1-800-433-3243.

FAQ

Introduction:

Here are some frequently asked questions about Parent PLUS Loans and PSLF:

Question 1: Can I get PSLF on my Parent PLUS Loans?

Answer: Yes, Parent PLUS Loans are eligible for PSLF, as long as you meet all of the program's requirements.

Question 2: What are the requirements for PSLF?

Answer: To receive PSLF, you must make 120 qualifying payments on your loans while working full-time for a qualifying public service employer. You must also be on an income-driven repayment plan.

Question 3: What is an income-driven repayment plan?

Answer: An income-driven repayment plan is a type of federal student loan repayment plan that caps your monthly payments at a percentage of your discretionary income.

Question 4: How do I apply for PSLF?

Answer: Once you have made 120 qualifying payments, you can apply for PSLF by submitting a PSLF application to your loan servicer.

Question 5: How long does it take to get PSLF?

Answer: It takes 10 years of full-time employment in public service to receive PSLF.

Question 6: What if I have more than one federal student loan?

Answer: If you have multiple federal student loans, you can consolidate them into a Direct Consolidation Loan. This will allow you to make a single monthly payment and track your progress towards PSLF more easily.

Closing Paragraph:

If you have any questions about Parent PLUS Loans or PSLF, you can contact your loan servicer or the Federal Student Aid Information Center at 1-800-433-3243.

Transition paragraph:

In addition to the information provided in the FAQ, here are some additional tips for parents who are considering taking out Parent PLUS Loans:

Tips

Introduction:

Here are some tips for parents who are considering taking out Parent PLUS Loans:

Tip 1: Consider your financial situation carefully.

Before you take out a Parent PLUS Loan, make sure you understand your financial obligations. Parent PLUS Loans are not dischargeable in bankruptcy, and you are responsible for repaying the loan even if your child does not complete their education.

Tip 2: Explore other financial aid options.

Before you take out a Parent PLUS Loan, make sure you have explored all other financial aid options, such as grants, scholarships, and work-study. You may also want to consider taking out a federal student loan in your own name.

Tip 3: Choose a repayment plan that works for you.

If you take out a Parent PLUS Loan, you will need to choose a repayment plan. There are four income-driven repayment plans available, which can help you manage your monthly payments. You can also make extra payments on your loan to pay it off faster.

Tip 4: Apply for PSLF if you work in public service.

If you work full-time for a qualifying public service employer, you may be eligible for PSLF. PSLF is a federal program that forgives the remaining balance of your federal student loans after you have made 120 qualifying payments.

Closing Paragraph:

Taking out a Parent PLUS Loan is a big decision. By following these tips, you can make sure that you are making the best decision for your family.

Transition paragraph:

In conclusion, Parent PLUS Loans can be a helpful way to pay for your child's education. However, it is important to understand the risks and responsibilities associated with these loans before you take one out.

Conclusion

Summary of Main Points:

Parent PLUS Loans can be a helpful way to pay for your child's education, but it is important to understand the risks and responsibilities associated with these loans before you take one out.

Parent PLUS Loans are eligible for PSLF, as long as you meet all of the program's requirements. To receive PSLF, you must make 120 qualifying payments on your loans while working full-time for a qualifying public service employer. You must also be on an income-driven repayment plan.

Closing Message:

If you are considering taking out a Parent PLUS Loan, be sure to do your research and understand all of your options. Talk to your child about their financial aid options and make sure you are comfortable with the amount of debt you are taking on.

Remember, Parent PLUS Loans are not dischargeable in bankruptcy, and you are responsible for repaying the loan even if your child does not complete their education.