The rising cost of higher education has left many families struggling to afford the cost of college for their children. As a result, many parents have taken out Parent PLUS loans to help cover these costs. However, repaying these loans can be a significant financial burden, especially for families who are already struggling to make ends meet.
The good news is that there are several options available for parent plus loans forgiveness. These programs can help parents to discharge their loans, either in whole or in part. In this article, we will provide a comprehensive guide to parent plus loans forgiveness, including eligibility requirements, application process, and available resources.
Before we dive into the details of parent plus loans forgiveness, it's important to understand the different types of federal student loans and how they differ from parent plus loans. Federal student loans are loans that are made directly to students by the federal government. Parent PLUS loans, on the other hand, are loans that are made to parents of students by the federal government.
Parent PLUS Loans Forgiveness
Borrowers can apply for forgiveness after a certain number of years of service.
- Public service
- 10 years of service
- 120 qualifying payments
- Teacher forgiveness
- 5 years of service
- Low-income families
- Closed school discharge
- Total and permanent disability
- Death
If you meet the eligibility criteria, you can apply for forgiveness by submitting an application to the U.S. Department of Education.
Public Service
One of the most common ways to qualify for parent PLUS loans forgiveness is through public service. This program allows borrowers to have their loans forgiven after 10 years of service in certain public service jobs. To be eligible, borrowers must:
- Work full-time in a public service job.
- Make 120 qualifying payments on their loans while working in a public service job.
- Have Direct Loans or have consolidated their loans into a Direct Loan.
Qualifying public service jobs include:
- Teaching in a public elementary school or secondary school.
- Working for a government agency at any level (federal, state, or local).
- Working for a non-profit organization that provides public services.
- Serving in the military.
Borrowers who are interested in pursuing public service loan forgiveness should apply for the Public Service Loan Forgiveness (PSLF) Program. The PSLF application is available on the Federal Student Aid website.
Once a borrower has submitted their PSLF application, they will need to track their progress towards forgiveness. Borrowers can do this by logging into their Federal Student Aid account and checking their PSLF status. Borrowers will need to recertify their employment annually to remain eligible for the program.
After 10 years of service and 120 qualifying payments, borrowers can apply for forgiveness of their remaining parent PLUS loan balance.
Public service loan forgiveness is a great option for borrowers who are working in public service jobs and who are struggling to repay their parent PLUS loans. This program can help borrowers to achieve their goal of becoming debt-free.
10 Years of Service
To qualify for parent PLUS loans forgiveness through public service, borrowers must complete 10 years of service in a qualifying public service job. This means working full-time for 10 years in a job that provides a benefit to the public. Qualifying public service jobs include:
- Teaching in a public elementary school or secondary school.
- Working for a government agency at any level (federal, state, or local).
- Working for a non-profit organization that provides public services.
- Serving in the military.
Borrowers who are working in multiple qualifying public service jobs can combine their service to meet the 10-year requirement. For example, a borrower who works for five years as a teacher and five years as a social worker can qualify for forgiveness.
It is important to note that the 10-year service requirement is based on full-time employment. Borrowers who work part-time will need to work for a longer period of time to qualify for forgiveness. For example, a borrower who works half-time will need to work for 20 years to qualify for forgiveness.
Borrowers who are unsure if their job qualifies for public service loan forgiveness can contact their loan servicer or visit the Federal Student Aid website.
Once a borrower has completed 10 years of service, they can apply for forgiveness of their remaining parent PLUS loan balance. To apply, borrowers will need to submit a PSLF application to the U.S. Department of Education.
The 10-year service requirement for parent PLUS loans forgiveness is a significant commitment, but it is possible to achieve. Borrowers who are dedicated to working in public service can use this program to achieve their goal of becoming debt-free.
120 Qualifying Payments
In addition to completing 10 years of service, borrowers must also make 120 qualifying payments on their parent PLUS loans to qualify for forgiveness. A qualifying payment is a payment that is:
- On time. Payments must be made on or before the due date to be considered qualifying payments.
- In full. Payments must be made in the full amount due to be considered qualifying payments.
- Made while working in a qualifying public service job. Payments made while the borrower is not working in a qualifying public service job do not count towards the 120 qualifying payments required for forgiveness.
Borrowers who are unsure if their payments are qualifying payments can contact their loan servicer or visit the Federal Student Aid website.
- Payments made during deferment or forbearance. Payments made during periods of deferment or forbearance do not count towards the 120 qualifying payments required for forgiveness. However, periods of deferment or forbearance can still count towards the 10 years of service required for forgiveness.
- Consolidating loans. Borrowers who have multiple parent PLUS loans can consolidate them into a single loan. This will simplify the repayment process and make it easier to track progress towards forgiveness. However, consolidating loans will not change the number of qualifying payments required for forgiveness.
- Applying for forgiveness. Once a borrower has made 120 qualifying payments, they can apply for forgiveness of their remaining parent PLUS loan balance. To apply, borrowers will need to submit a PSLF application to the U.S. Department of Education.
Making 120 qualifying payments is a significant commitment, but it is possible to achieve. Borrowers who are dedicated to working in public service can use this program to achieve their goal of becoming debt-free.
Teacher Forgiveness
Teachers who have worked in a low-income school or educational service agency for five years and have made 120 qualifying payments on their parent PLUS loans may be eligible for forgiveness of the remaining balance of their loans. This program is known as Teacher Forgiveness.
To qualify for Teacher Forgiveness, borrowers must meet the following requirements:
- Be a highly qualified teacher.
- Teach full-time for five complete consecutive academic years in a low-income elementary school, secondary school, or educational service agency.
- Make 120 qualifying payments on your parent PLUS loans while teaching.
- Have Direct Loans or have consolidated your loans into a Direct Loan.
Teachers who are unsure if they qualify for Teacher Forgiveness can contact their loan servicer or visit the Federal Student Aid website.
Once a teacher has met all of the eligibility requirements, they can apply for forgiveness of their remaining parent PLUS loan balance. To apply, teachers will need to submit a Teacher Forgiveness application to the U.S. Department of Education.
Teacher Forgiveness is a great option for teachers who are working in low-income schools and who are struggling to repay their parent PLUS loans. This program can help teachers to achieve their goal of becoming debt-free.
Here are some additional details about Teacher Forgiveness:
- The five years of teaching service do not need to be consecutive. However, they must be completed within a seven-year period.
- Teachers who work part-time can still qualify for Teacher Forgiveness. However, they will need to teach for a longer period of time to make 120 qualifying payments.
- Teachers who teach in a school that is not considered low-income may still be eligible for Teacher Forgiveness if they meet certain other requirements. For example, teachers who teach in a school that is located in a rural area or that serves a high percentage of students from low-income families may be eligible.
5 Years of Service
To qualify for Teacher Forgiveness, borrowers must teach full-time for five complete consecutive academic years in a low-income elementary school, secondary school, or educational service agency. This means working at least 30 hours per week for the entire academic year.
- Full-time teaching. Borrowers must teach full-time for five complete consecutive academic years. This means working at least 30 hours per week for the entire academic year.
- Consecutive years of service. The five years of teaching service do not need to be consecutive. However, they must be completed within a seven-year period.
- Low-income school. The school where the borrower teaches must be a low-income school. A low-income school is a school that meets certain criteria, such as having a high percentage of students from low-income families or being located in a rural area.
- Educational service agency. Borrowers who work for an educational service agency may also be eligible for Teacher Forgiveness. An educational service agency is a non-profit organization that provides services to schools, such as curriculum development, professional development, and technical assistance.
Teachers who are unsure if their school is considered low-income or if they work for an eligible educational service agency can contact their loan servicer or visit the Federal Student Aid website.
Here are some additional details about the five years of service requirement:
- Teachers who teach in a school that is not considered low-income may still be eligible for Teacher Forgiveness if they meet certain other requirements. For example, teachers who teach in a school that is located in a rural area or that serves a high percentage of students from low-income families may be eligible.
- Teachers who work part-time can still qualify for Teacher Forgiveness. However, they will need to teach for a longer period of time to make 120 qualifying payments.
- Teachers who have a break in service of up to three years may still be eligible for Teacher Forgiveness. However, the break in service will extend the amount of time it takes to qualify for forgiveness.
Low-Income Families
Parent PLUS loans may be forgiven if the borrower's child receives a Pell Grant and the borrower meets certain income requirements. This program is known as Parent PLUS Loan Forgiveness for Low-Income Families.
To qualify for Parent PLUS Loan Forgiveness for Low-Income Families, borrowers must meet the following requirements:
- The borrower's child must receive a Pell Grant for at least one academic year.
- The borrower's Adjusted Gross Income (AGI) must be below a certain threshold. The AGI threshold is adjusted each year based on the Consumer Price Index.
- The borrower must have made payments on their parent PLUS loans for at least five years.
- The borrower must not be in default on their parent PLUS loans.
Borrowers who are unsure if they qualify for Parent PLUS Loan Forgiveness for Low-Income Families can contact their loan servicer or visit the Federal Student Aid website.
Once a borrower has met all of the eligibility requirements, they can apply for forgiveness of their remaining parent PLUS loan balance. To apply, borrowers will need to submit an application to the U.S. Department of Education.
Parent PLUS Loan Forgiveness for Low-Income Families is a great option for borrowers who are struggling to repay their parent PLUS loans and who have a child who receives a Pell Grant. This program can help borrowers to achieve their goal of becoming debt-free.
Here are some additional details about Parent PLUS Loan Forgiveness for Low-Income Families:
- The AGI threshold for eligibility is adjusted each year based on the Consumer Price Index. For the 2022-2023 academic year, the AGI threshold is $125,000 for married couples filing jointly and $65,000 for single filers.
- Borrowers who have multiple children who receive a Pell Grant can have their loans forgiven for each child.
- Borrowers who have a break in service of up to three years may still be eligible for Parent PLUS Loan Forgiveness for Low-Income Families. However, the break in service will extend the amount of time it takes to qualify for forgiveness.
Closed School Discharge
Borrowers may be eligible for a closed school discharge if the school they attended closed while they were enrolled or within 180 days after they withdrew.
- School closure. The school must have closed while the borrower was enrolled or within 180 days after the borrower withdrew.
- Borrower's status. The borrower must have been enrolled at the school at the time it closed or must have withdrawn from the school within 180 days of its closure.
- Loan status. The borrower's parent PLUS loans must have been used to pay for the borrower's education at the school that closed.
- Application. Borrowers must apply for a closed school discharge by submitting an application to the U.S. Department of Education.
Borrowers who are unsure if they qualify for a closed school discharge can contact their loan servicer or visit the Federal Student Aid website.
Here are some additional details about closed school discharge:
- Borrowers who have multiple loans from different schools may be eligible for a closed school discharge for each loan.
- Borrowers who have a break in enrollment of up to 180 days may still be eligible for a closed school discharge.
- Borrowers who were unable to complete their education due to the school's closure may be eligible for a full discharge of their loans. Borrowers who were able to complete their education at another school may be eligible for a partial discharge of their loans.
Total and Permanent Disability
Borrowers who are totally and permanently disabled may be eligible for a discharge of their parent PLUS loans. To qualify for a disability discharge, borrowers 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 certify their disability.
- Apply for a disability discharge by submitting an application to the U.S. Department of Education.
Borrowers who are unsure if they qualify for a disability discharge can contact their loan servicer or visit the Federal Student Aid website.
Once a borrower has submitted their application for a disability discharge, the U.S. Department of Education will review the application and make a decision. If the application is approved, the borrower's parent PLUS loans will be discharged.
A disability discharge can be a lifesaver for borrowers who are struggling to repay their parent PLUS loans due to a disability. This program can help borrowers to achieve their goal of becoming debt-free.
Here are some additional details about disability discharge:
- Borrowers who are receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) are automatically eligible for a disability discharge.
- Borrowers who are not receiving SSDI or SSI can still qualify for a disability discharge if they can provide documentation from a doctor that certifies their disability.
- Borrowers who have a break in enrollment of up to three years may still be eligible for a disability discharge.
Death
If the borrower of a parent PLUS loan dies, the loan may be discharged. To qualify for a discharge due to death, the following documentation must be submitted to the U.S. Department of Education:
- A certified copy of the borrower's death certificate.
- A completed Application for Discharge of PLUS Loan Due to Death.
Once the U.S. Department of Education has received the required documentation, the parent PLUS loan will be discharged.
If the parent PLUS loan is discharged due to the borrower's death, the borrower's estate will not be responsible for repaying the loan.
A discharge due to death can provide peace of mind to the borrower's family and friends. This program ensures that the borrower's loved ones are not burdened with the responsibility of repaying the loan.
Here are some additional details about discharge due to death:
- If the borrower of a parent PLUS loan dies before the loan is fully repaid, the loan may be discharged.
- If the borrower of a parent PLUS loan dies while in default, the loan may be discharged.
- If the borrower of a parent PLUS loan dies and the loan is cosigned, the cosigner may be responsible for repaying the loan.
FAQ
Here are some frequently asked questions about parent PLUS loans forgiveness:
Question 1: What is parent PLUS loans forgiveness?
Answer: Parent PLUS loans forgiveness is a program that allows parents who have taken out parent PLUS loans to have their loans forgiven under certain circumstances.
Question 2: Who is eligible for parent PLUS loans forgiveness?
Answer: There are several different parent PLUS loans forgiveness programs, each with its own eligibility requirements. Some of the most common programs include:
- Public service loan forgiveness
- Teacher forgiveness
- Parent PLUS loan forgiveness for low-income families
- Closed school discharge
- Total and permanent disability discharge
- Death discharge
Question 3: How do I apply for parent PLUS loans forgiveness?
Answer: The application process for parent PLUS loans forgiveness varies depending on the program for which you are applying. However, in general, you will need to submit an application to the U.S. Department of Education.
Question 4: What are the benefits of parent PLUS loans forgiveness?
Answer: Parent PLUS loans forgiveness can provide several benefits, including:
- Loan forgiveness: Parent PLUS loans forgiveness can help parents to achieve their goal of becoming debt-free.
- Improved credit score: Having your parent PLUS loans forgiven can improve your credit score.
- Increased financial security: Parent PLUS loans forgiveness can help parents to improve their financial security.
Question 5: What are the drawbacks of parent PLUS loans forgiveness?
Answer: There are a few potential drawbacks to parent PLUS loans forgiveness, including:
- Income limits: Some parent PLUS loans forgiveness programs have income limits. This means that parents who earn too much money may not be eligible for forgiveness.
- Service requirements: Some parent PLUS loans forgiveness programs require borrowers to work in certain jobs or meet certain service requirements. This can be a challenge for parents who are not able to meet these requirements.
- Long application process: The application process for parent PLUS loans forgiveness can be long and complex.
Question 6: How can I learn more about parent PLUS loans forgiveness?
Answer: There are several resources available to help parents learn more about parent PLUS loans forgiveness. These resources include:
- The U.S. Department of Education's website
- Federal Student Aid's website
- Your loan servicer
- A financial advisor
Closing Paragraph:
Parent PLUS loans forgiveness can be a great option for parents who are struggling to repay their parent PLUS loans. However, it is important to understand the eligibility requirements and the application process before applying for forgiveness.
If you are considering applying for parent PLUS loans forgiveness, there are a few things you can do to improve your chances of approval.
Tips
If you are considering applying for parent PLUS loans forgiveness, there are a few things you can do to improve your chances of approval:
Tip 1: Choose the right program.
There are several different parent PLUS loans forgiveness programs available, each with its own eligibility requirements. Be sure to choose the program that is best suited for your needs.
Tip 2: Gather your documentation.
You will need to submit a number of documents with your application for parent PLUS loans forgiveness. Be sure to gather all of the required documentation before you begin the application process.
Tip 3: Submit your application early.
The application process for parent PLUS loans forgiveness can take several months. Be sure to submit your application early to avoid any delays.
Tip 4: Be prepared for the long haul.
It can take several years to qualify for parent PLUS loans forgiveness. Be prepared for the long haul and don't give up.
Closing Paragraph:
Parent PLUS loans forgiveness can be a great way to save money and improve your financial security. By following these tips, you can increase your chances of approval.
If you have any questions about parent PLUS loans forgiveness, be sure to contact your loan servicer or the U.S. Department of Education.
Conclusion
Parent PLUS loans can be a helpful way to pay for your child's education. However, repaying these loans can be a challenge, especially for parents who are struggling to make ends meet.
The good news is that there are several parent PLUS loans forgiveness programs available. These programs can help parents to discharge their loans, either in whole or in part.
If you are considering applying for parent PLUS loans forgiveness, there are a few things you should keep in mind:
- There are several different parent PLUS loans forgiveness programs available, each with its own eligibility requirements.
- You will need to submit a number of documents with your application for parent PLUS loans forgiveness.
- The application process for parent PLUS loans forgiveness can take several months.
- It can take several years to qualify for parent PLUS loans forgiveness.
Despite these challenges, parent PLUS loans forgiveness can be a great way to save money and improve your financial security. If you are struggling to repay your parent PLUS loans, I encourage you to learn more about the forgiveness programs that are available.
Closing Message:
Remember, you are not alone. Millions of parents have taken out parent PLUS loans to help their children pay for college. There are resources available to help you repay your loans and achieve your financial goals.