If you are a parent who has taken out Parent PLUS loans to help your child pay for college, you may be wondering if there are any options for loan forgiveness. The good news is that there are several programs available that can help you discharge your Parent PLUS loans. This comprehensive guide will provide you with all the information you need to know about student loan forgiveness for Parent PLUS loans, including eligibility requirements, application process, and available programs.
Parent PLUS loans are federal loans that are available to parents of undergraduate students. These loans are used to cover the cost of tuition, fees, and other educational expenses that are not covered by other financial aid. Parent PLUS loans have higher interest rates than other federal student loans, and they are not eligible for income-driven repayment plans.
Keep reading to learn more about the various loan forgiveness programs available for Parent PLUS loans, including the Public Service Loan Forgiveness Program and the Teacher Loan Forgiveness Program. We'll also discuss the requirements and application process for each program, so you can determine if you're eligible for relief.
Student Loan Forgiveness for Parent PLUS Loans
Options available to discharge loans.
- Public Service Loan Forgiveness
- Teacher Loan Forgiveness
- Income-Driven Repayment Plans
- Total and Permanent Disability Discharge
- Death Discharge
- Bankruptcy Discharge
Eligibility requirements and application process vary.
Public Service Loan Forgiveness
The Public Service Loan Forgiveness (PSLF) program is a federal program that forgives the remaining balance of your Parent PLUS loans after you have made 120 qualifying monthly payments while working full-time in a public service job. This program is available to both parent and graduate students who have taken out Parent PLUS loans.
To be eligible for PSLF, you must meet the following requirements:
- You must be employed full-time by a qualifying public service employer, such as a government agency, a non-profit organization, or a public school.
- You must have made 120 qualifying monthly payments on your Parent PLUS loans while working full-time for a qualifying public service employer.
- Your loans must be in good standing and not in default.
If you meet all of the eligibility requirements, you can apply for PSLF by submitting a PSLF Application to the U.S. Department of Education. The application is available online at the Federal Student Aid website.
Once you have submitted your PSLF Application, the U.S. Department of Education will review your application and determine if you are eligible for forgiveness. If you are approved for PSLF, your remaining Parent PLUS loan balance will be forgiven.
It's important to note that PSLF is a complex program with many eligibility requirements. If you are interested in PSLF, it is important to carefully review the program requirements and contact your loan servicer or the U.S. Department of Education for more information.
Teacher Loan Forgiveness
The Teacher Loan Forgiveness program is a federal program that forgives the remaining balance of your Parent PLUS loans after you have taught for five complete and consecutive academic years in a low-income school or educational service agency.
- Eligibility:
To be eligible for Teacher Loan Forgiveness, you must meet the following requirements:
- You must be employed full-time as a teacher in a low-income school or educational service agency.
- You must have made 120 qualifying monthly payments on your Parent PLUS loans.
- Your loans must be in good standing and not in default.
- Qualifying Schools:
To qualify as a low-income school, the school must meet one of the following criteria:
- The school must be located in a low-income area.
- The school must have a high percentage of students from low-income families.
- The school must be a Title I school.
- Qualifying Service:
To qualify as a teacher, you must be a certified teacher and you must be teaching core academic subjects, such as English, math, science, or social studies.
- Application Process:
To apply for Teacher Loan Forgiveness, you must submit a Teacher Loan Forgiveness Application to the U.S. Department of Education. The application is available online at the Federal Student Aid website.
Once you have submitted your Teacher Loan Forgiveness Application, the U.S. Department of Education will review your application and determine if you are eligible for forgiveness. If you are approved for Teacher Loan Forgiveness, your remaining Parent PLUS loan balance will be forgiven.
Income-Driven Repayment Plans
Income-driven repayment plans are a type of federal student loan repayment plan that allows you to cap your monthly 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 income-driven repayment plans available:
- Income-Based Repayment (IBR) Plan: Under this plan, your monthly payments are capped at 10% of your discretionary income.
- Pay As You Earn (PAYE) Plan: Under this plan, your monthly payments are capped at 10% of your discretionary income, but your payments may be lower than under the IBR plan if you have a high amount of debt relative to your income.
- Revised Pay As You Earn (REPAYE) Plan: Under this plan, your monthly payments are capped at 10% of your discretionary income, but there is no limit on the amount of time you can stay in the plan. This plan is available to all federal student loan borrowers, regardless of when they took out their loans.
- Income-Contingent Repayment (ICR) Plan: Under this plan, your monthly payments are capped at 20% of your discretionary income.
If you are struggling to repay your Parent PLUS loans, you may be eligible for an income-driven repayment plan. To apply for an income-driven repayment plan, you must submit an application to your loan servicer. You can find more information about income-driven repayment plans on the Federal Student Aid website.
It's important to note that income-driven repayment plans do not forgive your loans. However, if you make payments under an income-driven repayment plan for 20 or 25 years, depending on the plan, the remaining balance of your loans may be forgiven.
Total and Permanent Disability Discharge
If you are unable to work due to a total and permanent disability, you may be eligible for a Total and Permanent Disability (TPD) Discharge of your Parent PLUS loans.
- Eligibility:
To be eligible for a TPD Discharge, you must meet the following requirements:
- You must be unable to work due to a total and permanent disability.
- Your disability must be expected to continue indefinitely or result in death.
- You must have filed a claim for Social Security disability benefits or Supplemental Security Income (SSI).
- Your loans must be in default or you must have received a TPD Discharge for other federal student loans.
- Application Process:
To apply for a TPD Discharge, you must submit an application to your loan servicer. The application is available online at the Federal Student Aid website.
- Required Documentation:
When you apply for a TPD Discharge, you will need to provide documentation of your disability. This documentation may include:
- A letter from your doctor stating that you are unable to work due to a total and permanent disability.
- A copy of your Social Security disability award letter or SSI award letter.
- Approval Process:
Once you have submitted your application and documentation, your loan servicer will review your application and make a decision on your TPD Discharge request. If your application is approved, your Parent PLUS loans will be discharged.
If you are unable to work due to a total and permanent disability, you should apply for a TPD Discharge of your Parent PLUS loans. This discharge can provide you with much-needed financial relief and help you avoid default.
Death Discharge
If the parent who took out the Parent PLUS loans passes away, the loans may be discharged.
- Eligibility:
To be eligible for a Death Discharge, the following conditions must be met:
- The parent who took out the Parent PLUS loans must have passed away.
- The student for whom the loans were taken out must be the parent's child.
- The student must not have received a degree or completed the program of study for which the loans were taken out.
- Application Process:
To apply for a Death Discharge, the student must submit an application to their loan servicer. The application is available online at the Federal Student Aid website.
- Required Documentation:
When the student applies for a Death Discharge, they will need to provide documentation of the parent's death. This documentation may include:
- A copy of the parent's death certificate.
- A letter from the parent's doctor stating that the parent passed away.
- Approval Process:
Once the student has submitted their application and documentation, the loan servicer will review the application and make a decision on the Death Discharge request. If the application is approved, the Parent PLUS loans will be discharged.
If the parent who took out the Parent PLUS loans passes away, the student should apply for a Death Discharge of the loans. This discharge can provide the student with much-needed financial relief and help them avoid default.
Bankruptcy Discharge
In some cases, Parent PLUS loans may be discharged in bankruptcy. However, this is a difficult process and it is important to speak with an attorney to discuss your options.
- Eligibility:
To be eligible for a Bankruptcy Discharge of Parent PLUS loans, you must meet the following requirements:
- You must file for bankruptcy under Chapter 7 or Chapter 13.
- You must be able to demonstrate that you are unable to repay your Parent PLUS loans.
- You must have made a good faith effort to repay your loans.
- Application Process:
To apply for a Bankruptcy Discharge of Parent PLUS loans, you must file a motion with the bankruptcy court. The motion must include documentation of your financial situation, such as your income, expenses, and assets.
- Approval Process:
The bankruptcy court will review your motion and make a decision on your Bankruptcy Discharge request. If the court approves your motion, your Parent PLUS loans will be discharged.
- Important Considerations:
It is important to note that a Bankruptcy Discharge of Parent PLUS loans may have negative consequences. For example, it may damage your credit score and make it difficult to obtain credit in the future.
If you are considering filing for bankruptcy, it is important to speak with an attorney to discuss the potential impact of bankruptcy on your Parent PLUS loans. An attorney can help you determine if you are eligible for a Bankruptcy Discharge and can help you file the necessary paperwork.
FAQ
Introduction:
If you are a parent who has taken out Parent PLUS loans to help your child pay for college, you may have questions about your repayment options and whether you are eligible for loan forgiveness. The following FAQ section provides answers to some of the most common questions that parents have about Parent PLUS loans.
Question 1: What are my repayment options for Parent PLUS loans?
Answer 1: You have several repayment options for Parent PLUS loans, including:
- Standard Repayment Plan: This is the default repayment plan, which requires you to make fixed monthly payments over a period of 10 years.
- Graduated Repayment Plan: This plan starts with lower monthly payments that gradually increase over time.
- Extended Repayment Plan: This plan allows you to extend the repayment period to 25 years, which can lower your monthly payments.
- Income-Driven Repayment Plans: These plans cap your monthly payments at a percentage of your discretionary income.
Question 2: Am I eligible for loan forgiveness on my Parent PLUS loans?
Answer 2: There are several loan forgiveness programs available for Parent PLUS loans, including:
- Public Service Loan Forgiveness: This program forgives the remaining balance of your Parent PLUS loans after you have made 120 qualifying monthly payments while working full-time in a public service job.
- Teacher Loan Forgiveness: This program forgives the remaining balance of your Parent PLUS loans after you have taught for five complete and consecutive academic years in a low-income school or educational service agency.
- Income-Driven Repayment Plan Forgiveness: If you make payments under an income-driven repayment plan for 20 or 25 years, depending on the plan, the remaining balance of your loans may be forgiven.
Question 3: What happens to my Parent PLUS loans if I die or become totally and permanently disabled?
Answer 3: If you die or become totally and permanently disabled, your Parent PLUS loans may be discharged. To apply for a discharge, you or your representative must submit an application to your loan servicer.
Question 4: What happens to my Parent PLUS loans if my child dies or drops out of school?
Answer 4: If your child dies or drops out of school, you may be eligible for a discharge of your Parent PLUS loans. To apply for a discharge, you must submit an application to your loan servicer.
Question 5: Can I consolidate my Parent PLUS loans with my other federal student loans?
Answer 5: Yes, you can consolidate your Parent PLUS loans with your other federal student loans. Consolidation combines multiple loans into a single loan with a single interest rate and monthly payment.
Question 6: What should I do if I am struggling to repay my Parent PLUS loans?
Answer 6: If you are struggling to repay your Parent PLUS loans, you should contact your loan servicer immediately. Your loan servicer can help you explore your repayment options and may be able to put you in a more affordable repayment plan.
Closing:
If you have any questions about your Parent PLUS loans, you should contact your loan servicer. Your loan servicer can provide you with information about your repayment options, loan forgiveness programs, and other resources that may be available to you.
In addition to the information provided in the FAQ section, here are some additional tips for parents who have taken out Parent PLUS loans:
Tips
Introduction:
If you are a parent who has taken out Parent PLUS loans to help your child pay for college, there are a few things you can do to manage your loans and improve your chances of repayment.
Tip 1: Choose the right repayment plan.
There are several repayment plans available for Parent PLUS loans, so it is important to choose the plan that best fits your financial situation. If you are struggling to make your monthly payments, you may want to consider an income-driven repayment plan, which caps your monthly payments at a percentage of your discretionary income.
Tip 2: Make extra payments when you can.
If you have the money, making extra payments on your Parent PLUS loans can help you pay down your debt faster and save money on interest. Even a small amount of extra money can make a big difference over time.
Tip 3: Apply for loan forgiveness.
There are several loan forgiveness programs available for Parent PLUS loans, including Public Service Loan Forgiveness and Teacher Loan Forgiveness. If you are eligible for one of these programs, you may be able to have your loans forgiven after a certain number of years of service.
Tip 4: Consider refinancing your loans.
If you have good credit, you may be able to refinance your Parent PLUS loans at a lower interest rate. This can save you money on your monthly payments and help you pay down your debt faster.
Closing:
By following these tips, you can manage your Parent PLUS loans and improve your chances of repayment. If you are struggling to repay your loans, you should contact your loan servicer immediately. Your loan servicer can help you explore your repayment options and may be able to put you in a more affordable repayment plan.
In conclusion, Parent PLUS loans can be a helpful way to help your child pay for college. However, it is important to understand the terms of your loan and to make sure that you are able to repay the loan before you sign on the dotted line.
Conclusion
Summary of Main Points:
- Parent PLUS loans can be a helpful way to help your child pay for college.
- It is important to understand the terms of your loan before you sign on the dotted line.
- There are several repayment options available for Parent PLUS loans.
- You may be eligible for loan forgiveness on your Parent PLUS loans.
- If you are struggling to repay your loans, you should contact your loan servicer immediately.
Closing Message:
Taking out a Parent PLUS loan is a big financial decision. It is important to weigh the pros and cons carefully before you decide if this loan is right for you. If you do decide to take out a Parent PLUS loan, be sure to choose the right repayment plan and make payments on time. By following these tips, you can manage your Parent PLUS loans and help your child achieve their educational goals.
Remember, you are not alone in this journey. There are many resources available to help you repay your Parent PLUS loans. Your loan servicer can provide you with information about your repayment options and loan forgiveness programs. You can also find helpful information on the Federal Student Aid website.