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 loan forgiveness programs as federal student loans borrowed by students.
However, there are some circumstances under which a Parent PLUS loan may be eligible for discharge. These circumstances include if the student dies, becomes totally and permanently disabled, or if the school closes before the student completes their degree.
In this article, we will discuss in more detail the circumstances under which a Parent PLUS loan may be eligible for discharge, as well as the process for applying for discharge.
Do Parent PLUS Loans Qualify for Loan Forgiveness?
Understanding the eligibility criteria for Parent PLUS loan forgiveness.
- Not eligible for same programs as student loans.
- Discharge possible in specific circumstances.
- Death of student.
- Total and permanent disability of student.
- School closure before degree completion.
- Apply for discharge through specific process.
- Contact loan servicer for more information.
- Explore alternative repayment options.
- Consider loan consolidation.
- Seek professional advice if needed.
Remember, it's essential to understand your rights and options regarding Parent PLUS loan repayment and forgiveness.
Not eligible for same programs as student loans.
Unlike federal student loans borrowed by students, Parent PLUS loans are not eligible for the same loan forgiveness programs. This means that options like Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness are not available to Parent PLUS loan borrowers.
- Reason for ineligibility:
The ineligibility of Parent PLUS loans for these forgiveness programs is due to their classification as parent loans rather than student loans. The programs mentioned are specifically designed to provide relief to borrowers who have worked in certain public service professions or met specific teaching requirements.
- Impact on borrowers:
The lack of eligibility for these forgiveness programs can be a significant disadvantage for Parent PLUS loan borrowers, especially those who may have taken out substantial loans to help their children pursue higher education.
- Alternative repayment options:
While Parent PLUS loans may not be eligible for forgiveness, there are alternative repayment options available to borrowers who are struggling to make their monthly payments. These options may include income-driven repayment plans, which can lower monthly payments based on your income and family size.
- Exploring other avenues:
If you have Parent PLUS loans and are interested in pursuing loan forgiveness, it's important to explore other avenues that may be available to you. This could include loan consolidation or seeking professional advice from a financial advisor or loan counselor.
It's crucial to understand the specific terms and conditions associated with Parent PLUS loans, including their ineligibility for certain loan forgiveness programs. By doing so, you can make informed decisions about repayment options and explore alternatives that may be available to you.
Discharge possible in specific circumstances.
While Parent PLUS loans are generally not eligible for loan forgiveness programs, there are specific circumstances under which discharge may be possible:
- Death of the student:
If the student who the Parent PLUS loan was taken out for passes away, the loan may be discharged. This typically requires providing a death certificate and other supporting documentation to the loan servicer.
- Total and permanent disability of the student:
If the student becomes totally and permanently disabled, the Parent PLUS loan may be discharged. This requires documentation from a medical professional certifying the disability and its impact on the student's ability to repay the loan.
- School closure before degree completion:
If the school that the student was attending closes before the student is able to complete their degree, the Parent PLUS loan may be discharged. This requires documentation from the school or relevant authorities confirming the closure and the student's inability to complete their education.
- False certification of loan eligibility:
If the school falsely certified the student's eligibility for the Parent PLUS loan, the loan may be discharged. This can occur in cases where the school provided inaccurate information or failed to follow proper procedures in determining the student's eligibility.
It's important to note that discharge of Parent PLUS loans in these circumstances is not automatic. Borrowers need to apply for discharge and provide the necessary documentation to their loan servicer. The process and requirements for discharge can vary depending on the specific circumstance and the loan servicer.