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 you are eligible for forgiveness. The U.S. Department of Education has a number of programs that can help you repay or forgive your loan. To know more in detail, this informational article will guide you on what Parent PLUS loan forgiveness is and how to apply.
Parent PLUS loans are federal loans that parents can take out to help their children pay for college. The loans are not based on the parent's credit history, and they have a fixed interest rate. Parent PLUS loans can be used to pay for the cost of attendance at an eligible college or university, including tuition, fees, room and board, and other expenses.
Parent PLUS Loan Forgiveness 2022
Simplify your understanding of the Parent PLUS loan forgiveness program.
- Loan forgiveness available: Up to $17,500.
- Public service required: Work in certain public service jobs for 10 years.
- Income-driven repayment: Lower monthly payments based on your income.
- Loan cancellation: After 20 or 25 years of repayment.
- Deferment and forbearance: Temporary payment relief options.
- Consolidation: Combine multiple loans into one.
- Eligibility requirements: Must meet certain criteria to qualify.
For more detailed information, please consult the U.S. Department of Education website or speak to your loan servicer.
Loan forgiveness available: Up to $17,500.
Under the Parent PLUS Loan Forgiveness Program, eligible borrowers can receive up to $17,500 in loan forgiveness.
- 10 years of public service: To qualify, you must work in a public service job for at least 10 years. Public service jobs include teaching, nursing, social work, and government service.
- Full-time employment: You must be employed full-time in your public service job. Part-time work does not qualify.
- Direct loans only: Only Parent PLUS loans that are Direct Loans are eligible for forgiveness. If you have FFEL or Perkins Parent PLUS loans, you must consolidate them into a Direct Loan before you can apply for forgiveness.
- Income limits: There are income limits to qualify for loan forgiveness. The limits are based on your Adjusted Gross Income (AGI). For 2022, the AGI limit is $125,000 for single filers and $250,000 for married couples filing jointly.
If you meet all of the eligibility requirements, you can apply for loan forgiveness by submitting a Public Service Loan Forgiveness (PSLF) Application. You can find the application and more information about the program on the Federal Student Aid website.
Public service required: Work in certain public service jobs for 10 years.
To qualify for Parent PLUS loan forgiveness, you must work in a public service job for at least 10 years. Public service jobs are defined as those that are performed by individuals who work for a government agency or a not-for-profit organization that provides a public service. Some common public service jobs include:
- Teachers
- Nurses
- Social workers
- Law enforcement officers
- Firefighters
- Military service members
- Public defenders
- Non-profit administrators
- Government researchers
- Public health workers
You must work in a public service job for a total of 10 years, and the work must be full-time. Part-time work does not qualify. You can work for multiple public service employers during the 10-year period, but all of the work must be in a qualifying public service job.
If you are not sure whether your job qualifies as a public service job, you can contact your loan servicer or visit the Federal Student Aid website for more information.
It's important to note that the 10-year public service requirement is not the same as the 120-month repayment period required for Public Service Loan Forgiveness (PSLF). PSLF is a separate program that allows certain public service workers to have their federal student loans forgiven after 120 months of qualifying payments. Parent PLUS loans are not eligible for PSLF, but they are eligible for Parent PLUS loan forgiveness after 10 years of public service.
Income-driven repayment: Lower monthly payments based on your income.
If you are struggling to repay your Parent PLUS loans, you may be eligible for an income-driven repayment plan. Income-driven repayment plans cap your monthly loan payments at a certain percentage of your discretionary income. This can make your loans more affordable and help you avoid default.
- Four income-driven repayment plans: There are four income-driven repayment plans available: Revised Pay As You Earn (REPAYE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR).
- Monthly payments: Your monthly payments under an income-driven repayment plan will be based on your income, family size, and the amount of your loan debt. In most cases, your payments will be capped at 10% to 15% of your discretionary income.
- Loan forgiveness: After 20 or 25 years of repayment under an income-driven repayment plan, the remaining balance of your loan may be forgiven. The amount of time it takes to receive forgiveness depends on the repayment plan you choose.
- Eligibility: To be eligible for an income-driven repayment plan, you must have federal student loans, including Parent PLUS loans. You must also meet certain income and family size requirements.
If you are interested in applying for an income-driven repayment plan, you can contact your loan servicer. You can also find more information about income-driven repayment plans on the Federal Student Aid website.
Loan cancellation: After 20 or 25 years of repayment.
If you have Parent PLUS loans and you meet certain requirements, you may be eligible for loan cancellation after 20 or 25 years of repayment. This means that the remaining balance of your loan will be forgiven, and you will no longer be responsible for repaying it.
To be eligible for loan cancellation, you must:
- Have Parent PLUS loans that are Direct Loans.
- Be employed in a public service job for the entire repayment period.
- Make 120 qualifying payments on your loans.
The 120 qualifying payments do not have to be consecutive. You can make payments under different repayment plans, and you can even have periods of deferment or forbearance. However, you must make the payments while you are employed in a public service job.
If you meet all of the eligibility requirements, you can apply for loan cancellation by submitting a Public Service Loan Forgiveness (PSLF) Application. You can find the application and more information about the program on the Federal Student Aid website.
It's important to note that Parent PLUS loans are not eligible for Public Service Loan Forgiveness (PSLF). However, Parent PLUS loans are eligible for loan cancellation after 20 or 25 years of repayment under the Parent PLUS Loan Forgiveness Program.
If you have Parent PLUS loans and you are not sure whether you are eligible for loan cancellation, you should contact your loan servicer or visit the Federal Student Aid website for more information.
Deferment and forbearance: Temporary payment relief options.
If you are struggling to repay your Parent PLUS loans, you may be able to get temporary relief through deferment or forbearance. Deferment allows you to postpone making payments on your loans for a period of time, while forbearance allows you to temporarily reduce or suspend your payments.
There are a number of different deferment and forbearance options available, depending on your circumstances. Some common reasons for deferment or forbearance include:
- Enrolling in school at least half-time
- Experiencing economic hardship
- Serving in the military
- Having a disability
- Caring for a child or spouse with a disability
To apply for deferment or forbearance, you must contact your loan servicer. You can find the contact information for your loan servicer on your monthly billing statement or on the Federal Student Aid website.
It's important to note that deferment and forbearance are temporary relief options. This means that you will still be responsible for repaying your loans, and interest will continue to accrue on your loans while they are in deferment or forbearance.
If you are considering deferment or forbearance, you should talk to your loan servicer to learn more about your options and to find out if you are eligible.
Consolidation: Combine multiple loans into one.
If you have multiple Parent PLUS loans, you may be able to consolidate them into a single loan. This can make it easier to manage your loans and track your progress towards repayment.
To consolidate your loans, you must have at least two Direct PLUS Loans or a combination of Direct PLUS Loans and FFEL PLUS Loans. You can consolidate your loans through the Federal Student Aid website or by contacting your loan servicer.
When you consolidate your loans, you will receive a new loan with a new interest rate. The interest rate on your new loan will be the weighted average of the interest rates on your old loans, rounded up to the nearest eighth of a percent. This means that your new interest rate may be higher or lower than the interest rates on your old loans.
Consolidating your loans will not affect your eligibility for Parent PLUS loan forgiveness or other repayment options. However, you should carefully consider the pros and cons of consolidation before you make a decision. Some things to consider include:
- Interest rate: The interest rate on your new loan may be higher or lower than the interest rates on your old loans.
- Repayment period: The repayment period for your new loan will be the same as the repayment period for your longest old loan.
- Loan forgiveness: If you are planning to apply for Parent PLUS loan forgiveness, you should make sure that you will be eligible for forgiveness under the new loan terms.
If you are considering consolidating your Parent PLUS loans, you should talk to your loan servicer to learn more about your options and to find out if consolidation is right for you.
Eligibility requirements: Must meet certain criteria to qualify.
To be eligible for Parent PLUS loan forgiveness, you must meet certain requirements. These requirements include:
- Have Parent PLUS loans: You must have Parent PLUS loans that are Direct Loans.
- Work in a public service job: You must work in a public service job for at least 10 years. Public service jobs include teaching, nursing, social work, and government service.
- Make 120 qualifying payments: You must make 120 qualifying payments on your loans. Qualifying payments are payments that are made on time and in full while you are employed in a public service job.
- Meet income and family size requirements: You must meet certain income and family size requirements to be eligible for loan forgiveness. The income limits are based on your Adjusted Gross Income (AGI). For 2022, the AGI limit is $125,000 for single filers and $250,000 for married couples filing jointly.
If you meet all of the eligibility requirements, you can apply for Parent PLUS loan forgiveness by submitting a Public Service Loan Forgiveness (PSLF) Application. You can find the application and more information about the program on the Federal Student Aid website.
FAQ
Here are some frequently asked questions about Parent PLUS loan forgiveness:
Question 1: What is Parent PLUS loan forgiveness?
Answer 1: Parent PLUS loan forgiveness is a program that allows parents who have taken out Parent PLUS loans to have their loans forgiven after 10 years of public service.
Question 2: Who is eligible for Parent PLUS loan forgiveness?
Answer 2: To be eligible for Parent PLUS loan forgiveness, you must have Parent PLUS loans that are Direct Loans, work in a public service job for at least 10 years, make 120 qualifying payments on your loans, and meet certain income and family size requirements.
Question 3: What is a public service job?
Answer 3: Public service jobs include teaching, nursing, social work, and government service. A complete list of public service jobs is available on the Federal Student Aid website.
Question 4: How do I apply for Parent PLUS loan forgiveness?
Answer 4: To apply for Parent PLUS loan forgiveness, you must submit a Public Service Loan Forgiveness (PSLF) Application. You can find the application and more information about the program on the Federal Student Aid website.
Question 5: How long does it take to get Parent PLUS loan forgiveness?
Answer 5: It takes 10 years of public service and 120 qualifying payments to receive Parent PLUS loan forgiveness.
Question 6: What happens if I don't qualify for Parent PLUS loan forgiveness?
Answer 6: If you do not qualify for Parent PLUS loan forgiveness, you may be eligible for other repayment options, such as income-driven repayment or deferment or forbearance. You should contact your loan servicer to learn more about your options.
Question 7: Where can I find more information about Parent PLUS loan forgiveness?
Answer 7: You can find more information about Parent PLUS loan forgiveness on the Federal Student Aid website or by contacting your loan servicer.
If you have any other questions about Parent PLUS loan forgiveness, please contact your loan servicer or visit the Federal Student Aid website.
In addition to the information provided in the FAQ section, here are some tips for parents who are considering taking out Parent PLUS loans:
Tips
Here are some 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, make sure you consider all of your other options for paying for college. This includes scholarships, grants, work-study, and private student loans.
Tip 2: Borrow only what you need.
If you do decide to take out a Parent PLUS loan, only borrow the amount of money that you need to cover the cost of attendance. This will help you minimize your debt and make it easier to repay your loans.
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 goals.
Tip 4: Make your payments on time.
Making your payments on time will help you avoid late fees and damage to your credit score. It will also help you stay on track to repay your loans.
Tip 5: Explore loan forgiveness options.
If you are employed in a public service job, you may be eligible for Parent PLUS loan forgiveness. You can find more information about loan forgiveness options on the Federal Student Aid website.
By following these tips, you can help make sure that you are making the best decision for yourself and your child when it comes to paying for college.
If you have any questions about Parent PLUS loans or other financial aid options, please contact your child's financial aid office or visit the Federal Student Aid website.
Conclusion
Parent PLUS loans can be a helpful way to pay for your child's college education, but it's important to understand the terms and conditions of the loan before you borrow. By following the tips in this article, you can help make sure that you are making the best decision for yourself and your child.
Here are some key points to remember:
- Parent PLUS loans are federal loans that parents can take out to help their children pay for college.
- Parent PLUS loans are not based on the parent's credit history, but they do have a fixed interest rate.
- Parent PLUS loans can be used to pay for the cost of attendance at an eligible college or university.
- Parents who have taken out Parent PLUS loans may be eligible for loan forgiveness after 10 years of public service.
- There are a number of repayment options available for Parent PLUS loans, so parents should choose a plan that fits their budget and their financial goals.
If you are considering taking out a Parent PLUS loan, be sure to talk to your child's financial aid office and your loan servicer to learn more about your options.
Remember, you are not alone in this journey. There are many resources available to help you and your child pay for college. With careful planning and preparation, you can make your child's dream of a college education a reality.