Are you a parent who has taken out a Parent PLUS Loan to help your child pay for college? If so, you may be wondering if you're eligible for loan forgiveness. The good news is that there are several options for parent PLUS loan forgiveness, including:
income-driven repayment plans, Public Service Loan Forgiveness, and Teacher Loan Forgiveness. In this article, we'll discuss these options and help you determine which payment choice may be right for you.
Parent PLUS Loans are federal loans that parents can take out to help their children pay for college. The loans are available to parents of dependent undergraduate students who are enrolled at least half-time in a degree program at an eligible school.
Parent Student Loan Forgiveness
Options for managing and discharging debt.
- Income-driven repayment plans
- Public Service Loan Forgiveness
- Teacher Loan Forgiveness
- Perkins Loan Cancellation
- Closed School Discharge
- Death or Disability Discharge
- Bankruptcy Discharge
- Borrower Defense to Repayment Discharge
- Total and Permanent Disability Discharge
Find the right solution for your situation.
Income-driven repayment plans
Income-driven repayment (IDR) plans are a way to make your monthly student loan payments more affordable by basing them on your income and family size. There are four main IDR plans available:
- Revised Pay As You Earn (REPAYE) Plan:
This plan limits your monthly payments to 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 food, housing, and transportation.
- Pay As You Earn (PAYE) Plan:
This plan limits your monthly payments to 10% of your discretionary income, but you must have taken out your loans after October 1, 2007, to be eligible.
- Income-Based Repayment (IBR) Plan:
This plan limits your monthly payments to 15% of your discretionary income. You must have taken out your loans before January 1, 2018, to be eligible.
- Income-Contingent Repayment (ICR) Plan:
This plan limits your monthly payments to 20% of your discretionary income. There is no income limit to be eligible for this plan.
IDR plans can be a good option for parents who are struggling to make their monthly PLUS loan payments. If you are having difficulty making your payments, you should contact your loan servicer to see if you are eligible for an IDR plan.
Public Service Loan Forgiveness
Public Service Loan Forgiveness (PSLF) is a federal program that forgives the remaining balance of your PLUS loans after you have made 120 qualifying payments while working full-time for a public service employer. Qualifying employers include government agencies, non-profit organizations, and certain types of schools and hospitals. To be eligible for PSLF, you must:
- Be employed by a qualifying public service employer.
- Have made 120 qualifying payments on your PLUS loans while working full-time for a qualifying employer.
- Have your loans in repayment under a qualifying repayment plan, such as an IDR plan.
If you meet all of these requirements, you can apply for PSLF by submitting a Public Service Loan Forgiveness Application. Once your application is approved, your remaining PLUS loan balance will be forgiven.
PSLF can be a great option for parents who are working in public service jobs and who are struggling to repay their PLUS loans. If you think you may be eligible for PSLF, you should start tracking your qualifying payments now. You can do this by creating an account on the Federal Student Aid website.
Once you have made 120 qualifying payments, you can submit a PSLF application. The application process can take several months, so it's important to start early.
Teacher Loan Forgiveness
Teacher Loan Forgiveness is a federal program that forgives the remaining balance of your PLUS loans after you have taught full-time for five complete and consecutive academic years in a low-income school or educational service agency. To be eligible for Teacher Loan Forgiveness, you must:
- Be a highly qualified teacher:
This means that you must have a bachelor's degree, a teaching certificate, and state licensure.
- Teach full-time for five complete and consecutive academic years in a low-income school or educational service agency:
A low-income school is a school in which at least 30% of the students are from low-income families. An educational service agency is a non-profit organization that provides services to low-income schools.
- Have your loans in repayment under a qualifying repayment plan:
Qualifying repayment plans include the IDR plans and the standard repayment plan.
- Receive a Teacher Loan Forgiveness Certificate:
Once you have completed five years of teaching service, you can apply for a Teacher Loan Forgiveness Certificate from the U.S. Department of Education.
Teacher Loan Forgiveness can be a great option for parents who are working as teachers in low-income schools. If you think you may be eligible for Teacher Loan Forgiveness, you should start tracking your teaching service now. You can do this by creating an account on the Federal Student Aid website.
Perkins Loan Cancellation
Perkins Loan Cancellation is a federal program that forgives the remaining balance of your Perkins Loans if you work in certain public service jobs. To be eligible for Perkins Loan Cancellation, you must:
- Be employed full-time in a public service job:
Qualifying public service jobs include teaching, nursing, social work, and law enforcement.
- Have made 120 qualifying payments on your Perkins Loans while working full-time in a public service job:
Qualifying payments are payments that are made on time and in full.
- Have your loans in repayment under a qualifying repayment plan:
Qualifying repayment plans include the IDR plans and the standard repayment plan.
- Receive a Perkins Loan Cancellation Application:
Once you have completed five years of public service employment, you can apply for a Perkins Loan Cancellation Application from the U.S. Department of Education.
Perkins Loan Cancellation can be a great option for parents who are working in public service jobs and who have Perkins Loans. If you think you may be eligible for Perkins Loan Cancellation, you should start tracking your qualifying payments now. You can do this by creating an account on the National Student Loan Data System (NSLDS) website.
Closed School Discharge
Closed School Discharge is a federal program that discharges the remaining balance of your PLUS loans if the school that your child attended closes before your child is able to complete their program.
- Your child's school must have closed:
The school must have closed while your child was enrolled and before they were able to complete their program.
- Your child must not have been able to transfer to another school:
Your child must have been unable to transfer to another school or program that would allow them to complete their degree.
- You must apply for Closed School Discharge:
You can apply for Closed School Discharge by submitting a Closed School Discharge Application to the U.S. Department of Education.
Closed School Discharge can be a helpful option for parents who have PLUS loans and whose child's school has closed. If your child's school has closed, you should contact your loan servicer to see if you are eligible for Closed School Discharge.
Death or Disability Discharge
Death or Disability Discharge is a federal program that discharges the remaining balance of your PLUS loans if you die or become totally and permanently disabled.
Death Discharge:
- If you die, your PLUS loans will be discharged automatically.
- Your estate or family members do not need to apply for Death Discharge.
Total and Permanent Disability Discharge:
- You may be eligible for Total and Permanent Disability Discharge if you are unable to work due to a disability that is expected to last for at least six months or result in death.
- To apply for Total and Permanent Disability Discharge, you must submit a Total and Permanent Disability Discharge Application to the U.S. Department of Education.
- You will need to provide documentation from your doctor or other medical professional to support your claim of disability.
Death or Disability Discharge can be a helpful option for parents who have PLUS loans and who are facing death or disability. If you are facing death or disability, you should contact your loan servicer to see if you are eligible for Death or Disability Discharge.
You can also learn more about Death and Disability Discharge on the Federal Student Aid website.
Bankruptcy Discharge
Bankruptcy Discharge is a federal program that may discharge the remaining balance of your PLUS loans if you file for bankruptcy.
- You must file for bankruptcy under Chapter 7 or Chapter 13:
Chapter 7 is a liquidation bankruptcy, while Chapter 13 is a reorganization bankruptcy.
- You must demonstrate that you cannot repay your PLUS loans:
You will need to provide documentation to the bankruptcy court showing that you have financial hardship and that you cannot afford to repay your PLUS loans.
- The bankruptcy court will decide whether to discharge your PLUS loans:
The bankruptcy court will consider your financial situation and your ability to repay your loans before making a decision.
Bankruptcy Discharge can be a helpful option for parents who have PLUS loans and who are facing financial hardship. If you are considering filing for bankruptcy, you should talk to a bankruptcy attorney to see if you are eligible for Bankruptcy Discharge.
Borrower Defense to Repayment Discharge
Borrower Defense to Repayment Discharge is a federal program that may discharge the remaining balance of your PLUS loans if you were misled or defrauded by your school.
- You must have been misled or defrauded by your school:
This could include being misled about the cost of your education, the job prospects for graduates, or the accreditation of your school.
- You must have filed a borrower defense to repayment application:
You can file a borrower defense to repayment application with the U.S. Department of Education.
- The U.S. Department of Education will review your application and make a decision:
The U.S. Department of Education will consider the evidence you provide and make a decision on whether to discharge your PLUS loans.
Borrower Defense to Repayment Discharge can be a helpful option for parents who have PLUS loans and who were misled or defrauded by their child's school. If you believe that you were misled or defrauded by your child's school, you should contact the U.S. Department of Education to learn more about Borrower Defense to Repayment Discharge.
Total and Permanent Disability Discharge
Total and Permanent Disability Discharge is a federal program that discharges the remaining balance of your PLUS loans if you are unable to work due to a disability that is expected to last for at least six months or result in death.
To be eligible for Total and Permanent Disability Discharge, you must:
- Be unable to work due to a disability that is expected to last for at least six months or result in death.
- Have a doctor or other medical professional certify your disability.
- Submit a Total and Permanent Disability Discharge Application to the U.S. Department of Education.
The U.S. Department of Education will review your application and make a decision on whether to discharge your PLUS loans. If your application is approved, your PLUS loans will be discharged and you will no longer be responsible for repaying them.
Total and Permanent Disability Discharge can be a helpful option for parents who have PLUS loans and who are unable to work due to a disability. If you are facing disability, you should contact your loan servicer to learn more about Total and Permanent Disability Discharge.
You can also learn more about Total and Permanent Disability Discharge on the Federal Student Aid website.
FAQ
Introduction:
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 your repayment options and whether you're eligible for loan forgiveness. Here are answers to some frequently asked questions about parent PLUS loan forgiveness:
Question 1: What are my repayment options for my Parent PLUS Loan?
Answer: You have several repayment options for your Parent PLUS Loan, including:
- Income-driven repayment plans: These plans cap your monthly payments at a percentage of your discretionary income.
- Public Service Loan Forgiveness: This program forgives the remaining balance of your loan after you make 120 qualifying payments while working full-time for a public service employer.
- Teacher Loan Forgiveness: This program forgives the remaining balance of your loan after you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency.
Question 2: Am I eligible for Parent PLUS Loan forgiveness?
Answer: You may be eligible for Parent PLUS Loan forgiveness if you meet the requirements for one of the forgiveness programs listed above. For example, you may be eligible for Public Service Loan Forgiveness if you work full-time for a government agency, a non-profit organization, or a certain type of school or hospital.
Question 3: How do I apply for Parent PLUS Loan forgiveness?
Answer: The application process for Parent PLUS Loan forgiveness varies depending on the program you're applying for. For example, to apply for Public Service Loan Forgiveness, you must submit a Public Service Loan Forgiveness Application to the U.S. Department of Education. You can find more information about the application process for each forgiveness program on the Federal Student Aid website.
Closing Paragraph:
If you have any questions about your Parent PLUS Loan or your repayment options, you should contact your loan servicer. You can also learn more about Parent PLUS Loan forgiveness on the Federal Student Aid website.
These are just a few of the questions that parents may have about PLUS loan forgiveness. If you have any other questions, you should contact your loan servicer or visit the Federal Student Aid website.