Are parent PLUS loans eligible for 20k forgiveness?

Are parent PLUS loans eligible for 20k forgiveness?

Parent PLUS loans are federal student loans taken by parents to help pay for their child's education. These loans are available through the U.S. Department of Education's Direct Loan Program and have been a popular choice for parents who want to support their children's educational pursuits.

However, when it comes to loan forgiveness programs, the eligibility of parent PLUS loans has been a topic of discussion and confusion. Currently, there is no specific forgiveness program that offers a $20,000 forgiveness for parent PLUS loans.

Under the Public Service Loan Forgiveness (PSLF) program, which allows borrowers to have their remaining loan balance forgiven after making 120 qualifying payments while working full-time for a qualifying employer, only Direct Loans are eligible. Parent PLUS loans are not eligible for PSLF.

Similarly, the Teacher Loan Forgiveness program, which provides up to $17,500 in loan forgiveness for teachers who work in low-income schools for five consecutive years, does not include parent PLUS loans.

So, where does this leave parents who have taken out parent PLUS loans and are looking for forgiveness options? While a $20,000 forgiveness program specifically for parent PLUS loans does not currently exist, there are still alternative options available.

One option is to consolidate the parent PLUS loans into a Direct Consolidation Loan. This will allow parents to become eligible for the income-contingent repayment plan (ICR) or the income-based repayment plan (IBR).

Under the ICR and IBR plans, borrowers' monthly payment amounts are determined based on their income and family size. After making a certain number of qualifying payments under these plans, any remaining balance may be forgiven.

Although the forgiveness amount is not as high as $20,000, consolidating parent PLUS loans and enrolling in one of these repayment plans can provide some relief to parents who are struggling with loan payments.

It's important for parents with parent PLUS loans to stay updated on any changes or new forgiveness programs that may become available in the future. The loan landscape is constantly evolving, and new options may arise.

In conclusion, while there is currently no $20,000 forgiveness program specifically for parent PLUS loans, there are alternative options such as loan consolidation and enrolling in income-driven repayment plans that may provide some relief. As a parent with parent PLUS loans, staying informed and exploring all available options is crucial to managing and potentially reducing loan burden.

Frequently Asked Questions

No, Parent PLUS loans are not eligible for the $20k forgiveness program.

Only undergraduate federal direct loans, including Subsidized and Unsubsidized Stafford loans and Perkins loans, are eligible for $20k forgiveness.

No, Parent PLUS loans cannot be transferred to another individual, including the child, to qualify for $20k forgiveness.

Parent PLUS loan borrowers may be eligible for loan forgiveness through the Public Service Loan Forgiveness (PSLF) program if they work in a qualified public service organization for a certain period of time.

Parent PLUS loan borrowers may be eligible for the Income-Contingent Repayment (ICR) plan, which offers forgiveness of any remaining loan balance after 25 years of repayment. However, the forgiven amount will be considered taxable income.