If you're a parent who has taken out a Parent PLUS loan to help your child pay for college, you may be wondering if there's any way to get forgiveness for the loan. The good news is that there are a few different forgiveness programs available, and you may be eligible for one of them.
In this article, we'll discuss the different forgiveness programs available for Parent PLUS loans, as well as the eligibility requirements for each program. We'll also provide information on how to apply for forgiveness, and we'll answer some frequently asked questions about Parent PLUS loan forgiveness.
If you're struggling to repay your Parent PLUS loan, don't give up hope. There are forgiveness programs available that can help you get out of debt. Learn more about these programs and see if you're eligible.
Forgiveness for Parent PLUS Loans
Options for federal loans borrowed by parents.
- Public service forgiveness
- Teacher loan forgiveness
- Income-driven repayment forgiveness
- Death or disability discharge
- Closed school discharge
- Bankruptcy discharge
- Parent PLUS loan discharge
- Total and permanent disability discharge
- False certification discharge
- Unpaid refund discharge
Contact loan servicer for details and eligibility.
Public Service Forgiveness
Public Service Loan Forgiveness (PSLF) is a federal program that forgives the remaining balance of your Direct Loans after you have made 120 qualifying monthly payments while working full-time for a qualifying public service employer.
Qualifying public service employers include:
- Government organizations at any level (federal, state, local, or tribal)
- Nonprofit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
- AmeriCorps and Peace Corps
To be eligible for PSLF, you must:
- Have Direct Loans (or consolidate your other federal loans into a Direct Loan)
- Be employed full-time by a qualifying public service employer
- Make 120 qualifying monthly payments on your loans while working for a qualifying public service employer
Qualifying payments are payments that are made on time, in full, and while you are employed by a qualifying public service employer. Payments made while you are in deferment or forbearance do not count towards PSLF.
If you meet all of the eligibility requirements, you can apply for PSLF by submitting a PSLF Application to your loan servicer. The application is available on the Federal Student Aid website.
Teacher Loan Forgiveness
Teacher Loan Forgiveness is a federal program that forgives the remaining balance of your Direct Loans after you have taught for five complete and consecutive academic years in a high-need school or educational service agency.
- Qualifying schools and agencies:
To qualify for Teacher Loan Forgiveness, you must teach in a public or private elementary or secondary school, or an educational service agency, that serves low-income families. The school or agency must be located in a state with a teacher shortage.
- Qualifying teaching positions:
To qualify for Teacher Loan Forgiveness, you must be a full-time teacher in a core academic subject area, such as English, math, science, or social studies. You must also be certified to teach in the state where you are teaching.
- Qualifying loan payments:
To qualify for Teacher Loan Forgiveness, you must make 120 qualifying monthly payments on your Direct Loans while teaching full-time in a qualifying school or agency. Payments made while you are in deferment or forbearance do not count towards Teacher Loan Forgiveness.
- Applying for Teacher Loan Forgiveness:
To apply for Teacher Loan Forgiveness, you must submit a Teacher Loan Forgiveness Application to your loan servicer. The application is available on the Federal Student Aid website.
If you meet all of the eligibility requirements, your Direct Loans will be forgiven after you have completed five complete and consecutive academic years of teaching in a qualifying school or agency.
Income-Driven Repayment Forgiveness
Income-Driven Repayment (IDR) Forgiveness is a federal program that forgives the remaining balance of your Direct Loans after you have made 20 or 25 years of qualifying monthly payments under an IDR plan. The specific number of payments required for forgiveness depends on the IDR plan that you choose.
To be eligible for IDR Forgiveness, you must:
- Have Direct Loans (or consolidate your other federal loans into a Direct Loan)
- Be enrolled in an IDR plan
- Make 20 or 25 years of qualifying monthly payments on your loans while enrolled in an IDR plan
Qualifying payments are payments that are made on time, in full, and while you are enrolled in an IDR plan. Payments made while you are in deferment or forbearance do not count towards IDR Forgiveness.
If you meet all of the eligibility requirements, your Direct Loans will be forgiven after you have made the required number of qualifying monthly payments under an IDR plan.
IDR Forgiveness is a good option for borrowers who have high loan balances and low incomes. If you are struggling to repay your Parent PLUS loans, you may want to consider enrolling in an IDR plan to make your monthly payments more affordable and to qualify for forgiveness after 20 or 25 years.
Death or Disability Discharge
Death or Disability Discharge is a federal program that discharges the remaining balance of your Direct Loans if you become totally and permanently disabled or if you die.
To be eligible for Death or Disability Discharge, you must:
- Have Direct Loans (or consolidate your other federal loans into a Direct Loan)
- Be totally and permanently disabled, as determined by the Social Security Administration (SSA) or the Department of Veterans Affairs (VA)
- Or have died
If you become totally and permanently disabled, you can apply for Death or Disability Discharge by submitting an application to your loan servicer. The application is available on the Federal Student Aid website.
If you die, your spouse, parent, or other eligible representative can apply for Death or Disability Discharge on your behalf. The application is also available on the Federal Student Aid website.
If you are approved for Death or Disability Discharge, your Direct Loans will be discharged and you will no longer be responsible for repaying them.
Closed School Discharge
Closed School Discharge is a federal program that discharges the remaining balance of your Direct Loans if the school you attended closes before you are able to complete your program.
- Qualifying schools:
To qualify for Closed School Discharge, the school you attended must have closed on or after November 1, 1992. The school must also have been certified by the U.S. Department of Education to participate in the federal student loan programs.
- Qualifying students:
To qualify for Closed School Discharge, you must have been enrolled at the school at the time it closed. You must also have been unable to complete your program of study due to the school's closure.
- Applying for Closed School Discharge:
To apply for Closed School Discharge, you must submit an application to your loan servicer. The application is available on the Federal Student Aid website.
- Additional information:
If you are approved for Closed School Discharge, your Direct Loans will be discharged and you will no longer be responsible for repaying them. You may also be eligible for a refund of any payments that you made on your loans.
If you believe that you may be eligible for Closed School Discharge, you should contact your loan servicer to learn more.
Bankruptcy Discharge
Bankruptcy Discharge is a federal program that may discharge the remaining balance of your Parent PLUS Loans if you file for bankruptcy.
To be eligible for Bankruptcy Discharge, you must:
- Have Parent PLUS Loans
- File for bankruptcy under Chapter 7 or Chapter 13
- Prove that you cannot repay your loans due to undue hardship
Undue hardship is a legal term that means that you cannot maintain a minimal standard of living for yourself and your dependents if you are forced to repay your loans.
To apply for Bankruptcy Discharge, you must file a motion with the bankruptcy court. The motion must include a statement of your income and expenses, as well as a list of your debts. You must also provide evidence that you have tried to repay your loans, but that you have been unable to do so due to undue hardship.
If the bankruptcy court approves your motion, your Parent PLUS Loans will be discharged. This means that you will no longer be legally obligated to repay them.
Parent PLUS Loan Discharge
Parent PLUS Loan Discharge is a federal program that discharges the remaining balance of your Parent PLUS Loans if your child dies or becomes totally and permanently disabled.
To be eligible for Parent PLUS Loan Discharge, you must:
- Have Parent PLUS Loans
- Your child must have died or become totally and permanently disabled
If your child dies, you can apply for Parent PLUS Loan Discharge by submitting a death certificate to your loan servicer. If your child becomes totally and permanently disabled, you can apply for Parent PLUS Loan Discharge by submitting a disability discharge application to your loan servicer.
If you are approved for Parent PLUS Loan Discharge, your loans will be discharged and you will no longer be responsible for repaying them.
Total and Permanent Disability Discharge
Total and Permanent Disability Discharge is a federal program that discharges the remaining balance of your Parent PLUS Loans if you become totally and permanently disabled.
- Qualifying disabilities:
To qualify for Total and Permanent Disability Discharge, you must have a disability that is expected to last for at least 60 months or that is terminal.
- Qualifying documentation:
To apply for Total and Permanent Disability Discharge, you must submit documentation from a doctor or other qualified medical professional that certifies that you are totally and permanently disabled.
- Applying for Total and Permanent Disability Discharge:
To apply for Total and Permanent Disability Discharge, you must submit an application to your loan servicer. The application is available on the Federal Student Aid website.
- Additional information:
If you are approved for Total and Permanent Disability Discharge, your Parent PLUS Loans will be discharged and you will no longer be responsible for repaying them. You may also be eligible for a refund of any payments that you made on your loans.
If you believe that you may be eligible for Total and Permanent Disability Discharge, you should contact your loan servicer to learn more.
False Certification Discharge
False Certification Discharge is a federal program that discharges the remaining balance of your Parent PLUS Loans if the school you attended falsely certified your eligibility for the loans.
- Qualifying false certifications:
To qualify for False Certification Discharge, the school you attended must have falsely certified that you were eligible for Parent PLUS Loans. This could include certifying that you were a U.S. citizen or eligible non-citizen when you were not, or that you had a high school diploma or GED when you did not.
- Qualifying borrowers:
To qualify for False Certification Discharge, you must have been a student at the school at the time the false certification was made. You must also have relied on the false certification in order to obtain Parent PLUS Loans.
- Applying for False Certification Discharge:
To apply for False Certification Discharge, you must submit an application to your loan servicer. The application is available on the Federal Student Aid website.
- Additional information:
If you are approved for False Certification Discharge, your Parent PLUS Loans will be discharged and you will no longer be responsible for repaying them. You may also be eligible for a refund of any payments that you made on your loans.
If you believe that you may be eligible for False Certification Discharge, you should contact your loan servicer to learn more.
Unpaid Refund Discharge
Unpaid Refund Discharge is a federal program that discharges the remaining balance of your Parent PLUS Loans if you received a refund from the school that you attended and you failed to repay the refund.
- Qualifying refunds:
To qualify for Unpaid Refund Discharge, you must have received a refund from the school that you attended that was equal to or greater than the amount of your Parent PLUS Loans.
- Qualifying borrowers:
To qualify for Unpaid Refund Discharge, you must have failed to repay the refund within 120 days of the date that you received it.
- Applying for Unpaid Refund Discharge:
To apply for Unpaid Refund Discharge, you must submit an application to your loan servicer. The application is available on the Federal Student Aid website.
- Additional information:
If you are approved for Unpaid Refund Discharge, your Parent PLUS Loans will be discharged and you will no longer be responsible for repaying them. You may also be eligible for a refund of any payments that you made on your loans.
If you believe that you may be eligible for Unpaid Refund Discharge, you should contact your loan servicer to learn more.
FAQ
The following are some frequently asked questions about forgiveness for Parent PLUS loans:
Question 1: What is Parent PLUS loan forgiveness?
Answer 1: Parent PLUS loan forgiveness is a federal program that discharges the remaining balance of your Parent PLUS loans under certain circumstances, such as if your child dies or becomes totally and permanently disabled.
Question 2: What are the different types of Parent PLUS loan forgiveness?
Answer 2: There are several types of Parent PLUS loan forgiveness, including Public Service Loan Forgiveness, Teacher Loan Forgiveness, Income-Driven Repayment Forgiveness, Death or Disability Discharge, Closed School Discharge, Bankruptcy Discharge, Parent PLUS Loan Discharge, Total and Permanent Disability Discharge, False Certification Discharge, and Unpaid Refund Discharge.
Question 3: Am I eligible for Parent PLUS loan forgiveness?
Answer 3: The eligibility requirements for Parent PLUS loan forgiveness vary depending on the type of forgiveness that you are seeking. You can find more information about the eligibility requirements for each type of forgiveness on the Federal Student Aid website.
Question 4: How do I apply for Parent PLUS loan forgiveness?
Answer 4: The application process for Parent PLUS loan forgiveness also varies depending on the type of forgiveness that you are seeking. You can find more information about the application process for each type of forgiveness on the Federal Student Aid website.
Question 5: What happens if I am approved for Parent PLUS loan forgiveness?
Answer 5: If you are approved for Parent PLUS loan forgiveness, your loans will be discharged and you will no longer be responsible for repaying them. You may also be eligible for a refund of any payments that you made on your loans.
Question 6: What if I have more questions about Parent PLUS loan forgiveness?
Answer 6: If you have more questions about Parent PLUS loan forgiveness, you can contact your loan servicer or the Federal Student Aid Information Center.
Question 7: How can I avoid taking out Parent PLUS loans in the future?
Answer 7: There are a few things you can do to avoid taking out Parent PLUS loans in the future. First, you can encourage your child to apply for scholarships and grants. Second, you can save money for your child's education. Third, you can consider taking out a private student loan instead of a Parent PLUS loan.
These are just a few of the most frequently asked questions about Parent PLUS loan forgiveness. If you have any other questions, you can contact your loan servicer or the Federal Student Aid Information Center.
In addition to the information above, here are a few tips for parents who are considering taking out Parent PLUS loans:
Tips
Here are a few tips for parents who are considering taking out Parent PLUS loans:
Tip 1: Consider all of your options.
Before you take out a Parent PLUS loan, be sure to consider all of your other options for paying for your child's education. This includes scholarships, grants, private student loans, and work-study.
Tip 2: Don't borrow more than you can afford.
When you take out a Parent PLUS loan, you are responsible for repaying the loan, even if your child does not complete their education or if they are unable to get a job. Be sure to only borrow as much as you can afford to repay.
Tip 3: Choose a repayment plan that works for you.
There are a variety of repayment plans available for Parent PLUS loans. Choose a plan that fits your budget and your financial situation.
Tip 4: Be aware of the potential tax consequences.
The interest that you pay on your Parent PLUS loan may be tax deductible. However, there are some restrictions on the amount of interest that you can deduct. Be sure to talk to a tax advisor to learn more about the tax consequences of taking out a Parent PLUS loan.
By following these tips, you can help to ensure that you are making an informed decision about whether or not to take out a Parent PLUS loan.
If you have any questions about Parent PLUS loans, you can contact your loan servicer or the Federal Student Aid Information Center.
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 the loan and the repayment options before you take out a loan.
There are a number of forgiveness programs available for Parent PLUS loans, but you must meet certain eligibility requirements to qualify. If you are struggling to repay your Parent PLUS loans, you should contact your loan servicer to learn more about your options.
If you are considering taking out a Parent PLUS loan, it is important to carefully consider all of your options and to only borrow as much as you can afford to repay. By following the tips in this article, you can help to ensure that you are making an informed decision about whether or not to take out a Parent PLUS loan.