The question of whether or not Parent PLUS loans will be forgiven in 2022 is a topic of great concern for many families. Parent PLUS loans are a type of federal student loan that parents can take out to help pay for their child's education. These loans are not eligible for the same repayment options as other federal student loans, and they can be difficult to repay, especially if the parent is struggling financially.
There have been several proposals to forgive Parent PLUS loans, but none of these proposals have been enacted into law. As a result, it is unlikely that Parent PLUS loans will be forgiven in 2022. However, there are some other options available to parents who are struggling to repay their Parent PLUS loans, such as loan consolidation and loan forgiveness programs.
In this article, we will discuss the current status of Parent PLUS loans, the likelihood of forgiveness in 2022, and the options available to parents who are struggling to repay their loans.
Will Parent PLUS Loans Be Forgiven in 2022?
Unlikely, but possible changes.
- Current status: Not eligible for forgiveness.
- Proposals for forgiveness: Several, but not enacted.
- Likelihood of forgiveness in 2022: Low.
- Options for struggling borrowers: Consolidation, forgiveness programs.
- Monitor news and updates: Changes may occur.
- Contact loan servicer: For specific repayment assistance.
While it is unlikely that Parent PLUS loans will be forgiven in 2022, there is always the possibility of changes in the future. Borrowers who are struggling to repay their loans should contact their loan servicer to discuss their options.
Current status: Not eligible for forgiveness.
As of right now, Parent PLUS loans are not eligible for forgiveness under any federal programs. This means that borrowers are responsible for repaying the full amount of their loans, plus interest, regardless of their financial situation.
There have been several proposals to forgive Parent PLUS loans, but none of these proposals have been enacted into law. In 2021, President Biden proposed a plan to forgive up to $10,000 in federal student loan debt for all borrowers, including Parent PLUS loan borrowers. However, this proposal was met with opposition from Republicans in Congress, and it is unlikely to be passed in its current form.
Even if President Biden's proposal were to be passed, it is important to note that it would only forgive a portion of Parent PLUS loan debt. Borrowers would still be responsible for repaying the remaining balance of their loans.
For now, Parent PLUS loan borrowers do not have any options for loan forgiveness. However, there are some options available to borrowers who are struggling to repay their loans, such as loan consolidation and income-driven repayment plans.
If you are a Parent PLUS loan borrower who is struggling to repay your loans, you should contact your loan servicer to discuss your options. You may be eligible for a lower interest rate or a more manageable repayment plan.
Proposals for forgiveness: Several, but not enacted.
There have been several proposals to forgive Parent PLUS loans, but none of these proposals have been enacted into law.
- Biden's proposal:
In 2021, President Biden proposed a plan to forgive up to $10,000 in federal student loan debt for all borrowers, including Parent PLUS loan borrowers. However, this proposal was met with opposition from Republicans in Congress, and it is unlikely to be passed in its current form.
- Warren and Schumer's proposal:
In 2021, Senators Elizabeth Warren and Chuck Schumer introduced a bill that would cancel up to $50,000 in federal student loan debt for all borrowers, including Parent PLUS loan borrowers. This bill also has little chance of passing in the current Congress.
- Other proposals:
There have been several other proposals to forgive Parent PLUS loans, but none of these proposals have gained much traction in Congress. Some of these proposals include:
- Forgiving all Parent PLUS loans.
- Forgiving Parent PLUS loans for borrowers who meet certain criteria, such as income or family size.
- Allowing Parent PLUS loan borrowers to refinance their loans at a lower interest rate.
While there is some support for forgiving Parent PLUS loans, it is unlikely that any of the current proposals will be enacted into law in 2022. Borrowers who are struggling to repay their Parent PLUS loans should contact their loan servicer to discuss their options.
Likelihood of forgiveness in 2022: Low.
The likelihood of Parent PLUS loans being forgiven in 2022 is low. There is currently no legislation pending in Congress that would forgive Parent PLUS loans, and President Biden's proposal to forgive up to $10,000 in federal student loan debt is unlikely to pass in its current form.
Even if President Biden's proposal were to pass, it is important to note that it would only forgive a portion of Parent PLUS loan debt. Borrowers would still be responsible for repaying the remaining balance of their loans.
There is some support for forgiving Parent PLUS loans, but it is unlikely that any of the current proposals will be enacted into law in 2022. Borrowers who are struggling to repay their Parent PLUS loans should contact their loan servicer to discuss their options.
Here are some of the factors that make it unlikely that Parent PLUS loans will be forgiven in 2022:
- The high cost of forgiveness. Forgiving Parent PLUS loans would cost the federal government billions of dollars.
- The lack of support in Congress. There is currently no legislation pending in Congress that would forgive Parent PLUS loans, and there is little appetite among lawmakers to pass such legislation.
- The potential impact on the economy. Forgiving Parent PLUS loans could have a negative impact on the economy, as it would reduce the amount of money available for other government programs.
While it is possible that Parent PLUS loans could be forgiven in the future, it is unlikely that this will happen in 2022.
Options for struggling borrowers: Consolidation, forgiveness programs.
If you are a Parent PLUS loan borrower who is struggling to repay your loans, there are a few options available to you:
- Consolidation:
You can consolidate your Parent PLUS loans into a single loan with a single interest rate. This can make it easier to manage your monthly payments.
- Income-driven repayment plans:
You may be eligible for an income-driven repayment plan, which caps your monthly payments at a percentage of your discretionary income. This can make your loans more affordable.
- Forgiveness programs:
There are a few forgiveness programs available to Parent PLUS loan borrowers, including:
- Public Service Loan Forgiveness: If you work in a public service job, you may be eligible to have your Parent PLUS loans forgiven after 10 years of service.
- Teacher Loan Forgiveness: If you are a teacher, you may be eligible to have up to $17,500 of your Parent PLUS loans forgiven after five years of teaching.
- Perkins Loan Cancellation: If you have a Perkins Loan, you may be eligible to have your loan cancelled if you work in certain public service jobs.
- Deferment and forbearance:
If you are experiencing a temporary financial hardship, you may be able to defer or forbear your Parent PLUS loans. This means that you can temporarily stop making payments on your loans.
If you are struggling to repay your Parent PLUS loans, you should contact your loan servicer to discuss your options. You may be eligible for one or more of the programs listed above.
Monitor news and updates: Changes may occur.
Even though it is unlikely that Parent PLUS loans will be forgiven in 2022, it is important to monitor news and updates in case there are any changes.
- Follow the news:
Keep up with the latest news on Parent PLUS loan forgiveness by following reputable news sources.
- Check the Federal Student Aid website:
The Federal Student Aid website is a good resource for information on Parent PLUS loans and other federal student loans. The website is regularly updated with the latest news and information.
- Contact your loan servicer:
Your loan servicer can provide you with information about your Parent PLUS loans and any available repayment options. You can also contact your loan servicer if you are struggling to repay your loans.
- Sign up for email alerts:
You can sign up for email alerts from the Federal Student Aid website or your loan servicer to stay up-to-date on the latest news and information about Parent PLUS loans.
By monitoring news and updates, you can stay informed about any changes that may occur in the Parent PLUS loan forgiveness landscape.
Contact loan servicer: For specific repayment assistance.
If you are struggling to repay your Parent PLUS loans, you should contact your loan servicer. Your loan servicer is the company that manages your loans and collects your payments. They can provide you with information about your loans and the repayment options available to you.
Here are some of the things you can discuss with your loan servicer:
- Deferment and forbearance: If you are experiencing a temporary financial hardship, you may be able to defer or forbear your Parent PLUS loans. This means that you can temporarily stop making payments on your loans.
- Income-driven repayment plans: You may be eligible for an income-driven repayment plan, which caps your monthly payments at a percentage of your discretionary income. This can make your loans more affordable.
- Loan consolidation: You can consolidate your Parent PLUS loans into a single loan with a single interest rate. This can make it easier to manage your monthly payments.
- Loan forgiveness programs: You may be eligible for a loan forgiveness program, such as Public Service Loan Forgiveness or Teacher Loan Forgiveness. These programs can forgive your loans after a certain number of years of service.
Your loan servicer can also provide you with information about other repayment options that may be available to you. They can also help you create a repayment plan that fits your budget.
If you are struggling to repay your Parent PLUS loans, do not hesitate to contact your loan servicer. They are there to help you.
Here are some tips for talking to your loan servicer:
- Be prepared to provide your loan servicer with information about your financial situation.
- Be clear about your goals and what you hope to achieve.
- Be patient and persistent. It may take some time to find a repayment option that works for you.
FAQ
Here are some frequently asked questions about Parent PLUS loans and their potential forgiveness in 2022:
Question 1: Are Parent PLUS loans eligible for forgiveness in 2022?
Answer 1: As of right now, Parent PLUS loans are not eligible for forgiveness under any federal programs. However, there have been several proposals to forgive Parent PLUS loans, and it is possible that one of these proposals could be enacted into law in the future.
Question 2: What are the chances of Parent PLUS loans being forgiven in 2022?
Answer 2: The likelihood of Parent PLUS loans being forgiven in 2022 is low. There is currently no legislation pending in Congress that would forgive Parent PLUS loans, and President Biden's proposal to forgive up to $10,000 in federal student loan debt is unlikely to pass in its current form.
Question 3: What options are available to parents who are struggling to repay their Parent PLUS loans?
Answer 3: There are a few options available to parents who are struggling to repay their Parent PLUS loans, including consolidation, income-driven repayment plans, and loan forgiveness programs. Parents should contact their loan servicer to discuss their options.
Question 4: How can parents monitor news and updates on Parent PLUS loan forgiveness?
Answer 4: Parents can monitor news and updates on Parent PLUS loan forgiveness by following reputable news sources, checking the Federal Student Aid website, contacting their loan servicer, and signing up for email alerts.
Question 5: What should parents do if they are struggling to repay their Parent PLUS loans?
Answer 5: Parents who are struggling to repay their Parent PLUS loans should contact their loan servicer to discuss their options. Their loan servicer can provide them with information about deferment, forbearance, income-driven repayment plans, and loan forgiveness programs.
Question 6: What is the best way to prepare for the possibility of Parent PLUS loan forgiveness?
Answer 6: The best way to prepare for the possibility of Parent PLUS loan forgiveness is to stay informed about the latest news and updates. Parents should also contact their loan servicer to discuss their options and create a repayment plan that fits their budget.
Closing Paragraph: The Parent PLUS loan forgiveness landscape is constantly changing. Parents who are struggling to repay their loans should stay informed about the latest news and updates, and they should contact their loan servicer to discuss their options.
In addition to the information provided in the FAQ, here are some tips for parents who are struggling to repay their Parent PLUS loans:
Tips
Here are some tips for parents who are struggling to repay their Parent PLUS loans:
Tip 1: Contact your loan servicer.
The first step is to contact your loan servicer and discuss your financial situation. Your loan servicer can provide you with information about your loans and the repayment options available to you. They can also help you create a repayment plan that fits your budget.
Tip 2: Consider consolidating your loans.
If you have multiple Parent PLUS loans, you may be able to consolidate them into a single loan with a single interest rate. This can make it easier to manage your monthly payments.
Tip 3: Apply for an income-driven repayment plan.
Income-driven repayment plans cap your monthly payments at a percentage of your discretionary income. This can make your loans more affordable if you are struggling to make your current payments.
Tip 4: Explore loan forgiveness programs.
There are a few loan forgiveness programs available to Parent PLUS loan borrowers, including Public Service Loan Forgiveness and Teacher Loan Forgiveness. If you qualify for one of these programs, you may be able to have your loans forgiven after a certain number of years of service.
Closing Paragraph:
If you are struggling to repay your Parent PLUS loans, do not hesitate to contact your loan servicer. They are there to help you. By taking advantage of the tips provided above, you can make your loans more manageable and achieve your financial goals.
While the likelihood of Parent PLUS loan forgiveness in 2022 is low, there are still a number of options available to parents who are struggling to repay their loans. By following the tips above, parents can take steps to make their loans more manageable and improve their financial situation.
Conclusion
Parent PLUS loans can be a helpful way to finance your child's education, but they can also be a burden for parents who are struggling to repay their loans. If you are a parent who is struggling to repay your Parent PLUS loans, there are a number of options available to you, including consolidation, income-driven repayment plans, and loan forgiveness programs.
While the likelihood of Parent PLUS loan forgiveness in 2022 is low, there is always the possibility of changes in the future. Parents who are struggling to repay their loans should stay informed about the latest news and updates, and they should contact their loan servicer to discuss their options.
Closing Message:
If you are a parent who is struggling to repay your Parent PLUS loans, do not despair. There are a number of resources available to help you. By taking advantage of the tips and information provided in this article, you can make your loans more manageable and achieve your financial goals.