Parent PLUS loans, a type of federal student loan available to parents of undergraduate students, can be a lifesaver for families who need help paying for college. However, unlike other federal student loans, Parent PLUS loans are not eligible for loan forgiveness under most circumstances. This means that you are responsible for repaying the loan in full, even if your child does not complete their degree or if you experience financial hardship.
There are a few exceptions to this rule. Parent PLUS loans may be forgiven if the borrower:
Although Parent PLUS loans are not eligible for loan forgiveness under most circumstances, there are a few exceptions to this rule. In the next section, we will discuss these exceptions in more detail and provide information on how to apply for Parent PLUS loan forgiveness.
Can Parent PLUS Loans Be Forgiven
Parent PLUS loans are not typically eligible for loan forgiveness. However, there are a few exceptions to this rule.
- Total and permanent disability
- Death of the borrower
- Closed school discharge
- False certification discharge
- Unpaid refund discharge
- Borrower defense to repayment discharge
- Public service loan forgiveness (for certain public service employees)
- Teacher loan forgiveness (for certain teachers)
- Military service loan forgiveness (for certain military service members)
- Perkins Loan cancellation (for certain Perkins Loan borrowers)
If you believe you may be eligible for Parent PLUS loan forgiveness, you should contact your loan servicer to learn more.
Total and permanent disability
If you are totally and permanently disabled, you may be eligible for Parent PLUS loan forgiveness. To qualify, you must:
- Be unable to work due to a physical or mental impairment that is expected to last for at least six months or result in death.
- Have a doctor certify your disability.
- Submit an application for loan discharge to your loan servicer.
If you are approved for disability discharge, your Parent PLUS loans will be forgiven. This means that you will no longer be responsible for repaying the loans.
To apply for disability discharge, you will need to submit the following documents to your loan servicer:
- A completed application for loan discharge.
- A doctor's certification of your disability.
- Proof of your income and assets.
The process of applying for disability discharge can take several months. Once you have submitted your application, your loan servicer will review it and make a decision. If your application is approved, your loans will be forgiven. If your application is denied, you can appeal the decision.
If you are totally and permanently disabled, Parent PLUS loan forgiveness can provide you with much-needed financial relief. If you think you may be eligible, I encourage you to apply for loan discharge.
Death of the borrower
If the borrower of a Parent PLUS loan dies, the loan may be discharged. This means that the loan will be forgiven and the borrower's estate will not be responsible for repaying it.
- Death of the parent borrower
If the parent borrower dies, the Parent PLUS loan may be discharged. To qualify for a discharge, the following conditions must be met:
- The parent borrower must have died on or after October 1, 1998.
- The parent borrower must have been the sole borrower on the loan.
- The student for whom the loan was borrowed must have been enrolled at least half-time at the time of the parent borrower's death.
- Death of the student borrower
If the student borrower dies, the Parent PLUS loan may also be discharged. To qualify for a discharge, the following conditions must be met:
- The student borrower must have died on or after October 1, 1998.
- The student borrower must have been the primary borrower on the loan.
- Death of both the parent and student borrowers
If both the parent and student borrowers die, the Parent PLUS loan may also be discharged.
- Other exceptions
There are a few other exceptions that may allow for the discharge of a Parent PLUS loan due to the death of the borrower. These exceptions include:
- The death of the student borrower's spouse.
- The death of the student borrower's child.
- The total and permanent disability of the student borrower.
If you are the spouse or child of a Parent PLUS loan borrower who has died, you may be eligible for a discharge of the loan. To learn more, you should contact your loan servicer.
Closed school discharge
If the school that the student attended closes before the student is able to complete their degree, the student may be eligible for a closed school discharge of their Parent PLUS loan. To qualify for a discharge, the following conditions must be met:
- The school must have closed on or after November 1, 1998.
- The student must have been enrolled at the school at the time it closed.
- The student must not have been able to complete their degree program at another school.
- The student must have submitted an application for closed school discharge to their loan servicer.
If you believe you may be eligible for a closed school discharge of your Parent PLUS loan, you should contact your loan servicer to learn more.
False certification discharge
If the school that the student attended falsely certified that the student was eligible for a Parent PLUS loan, the student may be eligible for a false certification discharge of the loan. To qualify for a discharge, the following conditions must be met:
- The school must have falsely certified the student's eligibility for a Parent PLUS loan on or after January 1, 1986.
- The student must have relied on the school's false certification when they applied for the loan.
- The student must have been unable to complete their degree program at the school.
- The student must have submitted an application for false certification discharge to their loan servicer.
If you believe you may be eligible for a false certification discharge of your Parent PLUS loan, you should contact your loan servicer to learn more.
Unpaid refund discharge
If the school that the student attended fails to refund the student's unused federal student aid funds to the Department of Education, the student may be eligible for an unpaid refund discharge of their Parent PLUS loan. To qualify for a discharge, the following conditions must be met:
The school must have failed to refund the student's unused federal student aid funds to the Department of Education within 60 days of the student's withdrawal from school.
The student must have been enrolled at the school at least half-time at the time they withdrew.
The student must have submitted an application for unpaid refund discharge to their loan servicer.
If you believe you may be eligible for an unpaid refund discharge of your Parent PLUS loan, you should contact your loan servicer to learn more.
Borrower defense to repayment discharge
If the school that the student attended engaged in fraud or misrepresentation, the student may be eligible for a borrower defense to repayment discharge of their Parent PLUS loan. To qualify for a discharge, the following conditions must be met:
The school must have engaged in fraud or misrepresentation that caused the student to take out the Parent PLUS loan.
The student must have been enrolled at the school at the time the fraud or misrepresentation occurred.
The student must have submitted an application for borrower defense to repayment discharge to their loan servicer.
The Department of Education has recently made it easier for students to obtain a borrower defense to repayment discharge. Under the new rules, students can apply for a discharge even if they have already repaid their loans.
If you believe you may be eligible for a borrower defense to repayment discharge of your Parent PLUS loan, you should contact your loan servicer to learn more.
Public service loan forgiveness (for certain public service employees)
If you work in public service, you may be eligible for Public Service Loan Forgiveness (PSLF). This program forgives the remaining balance of your Parent PLUS loan after you have made 120 qualifying payments while working full-time for a qualifying employer.
- Qualifying employers
Qualifying employers for PSLF include:
- Federal, state, or local government agencies
- Non-profit organizations
- Certain other public service organizations
- Qualifying payments
Qualifying payments for PSLF are:
- Payments made on time and in full
- Payments made under any repayment plan
- Payments made while working full-time for a qualifying employer
- Applying for PSLF
To apply for PSLF, you must submit an application to your loan servicer. The application is available on the Federal Student Aid website.
- Recent changes to PSLF
Recent changes to PSLF have made it easier for public service employees to qualify for forgiveness. These changes include:
- Expanding the definition of qualifying employment
- Allowing borrowers to consolidate their loans into a Direct Consolidation Loan and still qualify for PSLF
- Simplifying the application process
If you work in public service, I encourage you to learn more about PSLF. This program can provide you with significant financial relief and help you achieve your goal of becoming debt-free.
Teacher loan forgiveness (for certain teachers)
If you are a teacher, you may be eligible for Teacher Loan Forgiveness. This program forgives the remaining balance of your Parent PLUS loan after you have taught for five complete and consecutive academic years in a low-income school or educational service agency.
- Qualifying schools and educational service agencies
Qualifying schools and educational service agencies for Teacher Loan Forgiveness include:
- Public elementary and secondary schools
- Public preschools
- Certain private schools
- Educational service agencies that serve low-income students
- Qualifying teachers
Qualifying teachers for Teacher Loan Forgiveness include:
- Teachers who are certified by the state in which they teach
- Teachers who teach full-time for at least five complete and consecutive academic years
- Teachers who teach in a low-income school or educational service agency
- Applying for Teacher Loan Forgiveness
To apply for Teacher Loan Forgiveness, you must submit an application to your loan servicer. The application is available on the Federal Student Aid website.
- Recent changes to Teacher Loan Forgiveness
Recent changes to Teacher Loan Forgiveness have made it easier for teachers to qualify for forgiveness. These changes include:
- Expanding the definition of a low-income school
- Allowing teachers to count years of service prior to becoming certified
- Simplifying the application process
If you are a teacher, I encourage you to learn more about Teacher Loan Forgiveness. This program can provide you with significant financial relief and help you achieve your goal of becoming debt-free.
Military service loan forgiveness (for certain military service members)
If you are a member of the military, you may be eligible for Military Service Loan Forgiveness. This program forgives the remaining balance of your Parent PLUS loan after you have served for a certain period of time in a combat zone or other hazardous duty area.
To qualify for Military Service Loan Forgiveness, you must:
- Be an active duty member of the U.S. military.
- Have served for at least 12 months in a combat zone or other hazardous duty area.
- Have received a campaign medal for your service.
- Submit an application for loan forgiveness to your loan servicer.
If you meet all of these requirements, you may be eligible for forgiveness of the remaining balance of your Parent PLUS loan.
In addition to the Military Service Loan Forgiveness program, there are also other loan forgiveness programs available to members of the military. These programs include:
- Public Service Loan Forgiveness
- Teacher Loan Forgiveness
- Perkins Loan Cancellation
If you are a member of the military, I encourage you to learn more about these loan forgiveness programs. You may be eligible for forgiveness of all or a portion of your Parent PLUS loan.
For more information on Military Service Loan Forgiveness and other loan forgiveness programs for members of the military, please visit the Federal Student Aid website.
Perkins Loan cancellation (for certain Perkins Loan borrowers)
If you have a Perkins Loan, you may be eligible for loan cancellation under certain circumstances. Perkins Loans are a type of federal student loan that was discontinued in 2017. However, borrowers who still have Perkins Loans may be eligible for loan cancellation if they meet certain requirements.
There are several different Perkins Loan cancellation programs available. These programs include:
- Teacher Loan Forgiveness: Teachers who teach full-time for five complete and consecutive academic years in a low-income school or educational service agency may be eligible for forgiveness of their Perkins Loans.
- Public Service Loan Forgiveness: Employees of certain public service organizations may be eligible for forgiveness of their Perkins Loans after 10 years of qualifying employment.
- Military Service Loan Forgiveness: Members of the military who serve on active duty for at least 12 months in a combat zone or other hazardous duty area may be eligible for forgiveness of their Perkins Loans.
- Closed School Discharge: Borrowers who were enrolled at a school that closed before they were able to complete their degree may be eligible for discharge of their Perkins Loans.
- Disability Discharge: Borrowers who are totally and permanently disabled may be eligible for discharge of their Perkins Loans.
If you have a Perkins Loan and you believe you may be eligible for loan cancellation, you should contact your loan servicer to learn more.
For more information on Perkins Loan cancellation, please visit the Federal Student Aid website.
FAQ
Here are some frequently asked questions about Parent PLUS loans and loan forgiveness:
Question 1: Can Parent PLUS loans be forgiven?
Answer: Parent PLUS loans are not eligible for loan forgiveness under most circumstances. However, there are a few exceptions to this rule. Parent PLUS loans may be forgiven if the borrower:
- Becomes totally and permanently disabled.
- Dies.
- The school that the student attended closes before the student is able to complete their degree.
- The school that the student attended falsely certified the student's eligibility for a Parent PLUS loan.
- The school that the student attended fails to refund the student's unused federal student aid funds to the Department of Education.
- The student was defrauded or misled by the school that they attended.
- The borrower works in public service for 10 years and meets other requirements.
- The borrower is a teacher who teaches for five years in a low-income school or educational service agency.
- The borrower is a member of the military who serves on active duty for at least 12 months in a combat zone or other hazardous duty area.
- The borrower has a Perkins Loan and meets certain requirements.
Question 7: What are some tips for avoiding Parent PLUS loan debt?
Answer: Here are some tips for avoiding Parent PLUS loan debt:
- Encourage your child to apply for scholarships and grants.
- Help your child find a college that is affordable.
- Consider cosigning a private student loan instead of taking out a Parent PLUS loan.
- Make sure you understand the terms and conditions of the Parent PLUS loan before you sign the promissory note.
- Make regular payments on your Parent PLUS loan.
Closing Paragraph for FAQ
If you have any questions about Parent PLUS loans or loan forgiveness, you should contact your loan servicer or the Federal Student Aid Information Center.
If you are considering taking out a Parent PLUS loan, I encourage you to learn more about the loan forgiveness programs that are available. You may be eligible for loan forgiveness if you meet certain requirements.
Tips
Here are some tips for parents who are considering taking out a Parent PLUS loan:
Tip 1: Consider all of your options before taking out a Parent PLUS loan.
Parent PLUS loans are not the only way to help your child pay for college. There are other options available, such as scholarships, grants, and private student loans. You should carefully consider all of your options before taking out a Parent PLUS loan.
Tip 2: Make sure you understand the terms and conditions of the Parent PLUS loan before you sign the promissory note.
Parent PLUS loans have a higher interest rate than other federal student loans. They also have a longer repayment period. You should make sure you understand all of the terms and conditions of the loan before you sign the promissory note.
Tip 3: Make regular payments on your Parent PLUS loan.
Making regular payments on your Parent PLUS loan is important for avoiding default. If you default on your loan, you may be subject to wage garnishment, tax refund offset, and other collection actions.
Tip 4: Explore loan forgiveness options.
There are a number of loan forgiveness programs available for Parent PLUS loans. You may be eligible for loan forgiveness if you meet certain requirements. You should explore all of your loan forgiveness options before you make a decision about repayment.
Closing Paragraph for Tips
Taking out a Parent PLUS loan is a big financial decision. You should carefully consider all of your options before taking out a loan. If you do decide to take out a Parent PLUS loan, make sure you understand the terms and conditions of the loan and make regular payments.
If you have any questions about Parent PLUS loans or loan forgiveness, you should contact your loan servicer or the Federal Student Aid Information Center.
Conclusion
Parent PLUS loans can be a helpful way to help your child pay for college. However, it is important to understand the terms and conditions of the loan before you sign the promissory note. Parent PLUS loans have a higher interest rate than other federal student loans and a longer repayment period. You should also be aware of the fact that Parent PLUS loans are not eligible for loan forgiveness under most circumstances.
If you are considering taking out a Parent PLUS loan, I encourage you to carefully consider all of your options. You should also make sure you understand the terms and conditions of the loan and make regular payments. If you have any questions about Parent PLUS loans or loan forgiveness, you should contact your loan servicer or the Federal Student Aid Information Center.
Closing Message
I hope this article has been helpful in providing you with information about Parent PLUS loans and loan forgiveness. Remember, taking out a Parent PLUS loan is a big financial decision. You should carefully consider all of your options before taking out a loan.