Public Service Forgiveness for Parent PLUS Loans
It is possible for Parent PLUS loans to qualify for Public Service Loan Forgiveness (PSLF), but borrowers have to jump through some hoops.
Did you know?
Parent PLUS Loans are issued to the child and not the parent.
This means that the child has no legal responsibility to repay the debt, and it only appears on the parent's credit report.
Borrower Protections
If the borrower or the child for whom the loan was borrowed dies, the debt is eligible for immediate discharge.
This protection isn't something families want to think about, but it can become really important if tragedy strikes.
It is possible for Parent PLUS loans to qualify for Public Service Loan Forgiveness (PSLF), but borrowers have to jump through some hoops.
The rewards are huge – lower monthly payments and more loan forgiveness, but the double consolidation loophole isn’t right for everyone.
If you manage your Parent PLUS loans wrong, it could result in permanent double payments for all of your federal student loans.
Some consolidation mistakes limit repayment plan and forgiveness options. Borrowers who got bad advice from servicers deserve help.
Transferring Parent PLUS debt from a parent to child can be an easy move, but it comes with some big risks for the child.
Parents have many different options to help their kids pay for college. The best choice for your family will depend on several different factors.
If your child isn’t making the Parent PLUS Loan payments they promised, things can get ugly. Responsibility for paying the bill is complicated.
Repayment options for Parent PLUS loans include income-driven repayment plans, loan forgiveness, and refinancing.
Parent PLUS loans are legally the responsibility of the parents, but there are many different ways children can help with repayment.