Parent PLUS Loan forgiveness can get complicated fast. This is the price borrowers pay for such a generous and reliable federal student loan award.
The student loan debt from schooling adds up, contributing to financial instability for some. Financial aid can really help for education, but repaying it can be hard.
Loan forgiveness for Parent PLUS Loans does not exist, but there are ways around it.
Here’s what you need to know.
Parent PLUS Loan Forgiveness: Possible or Not?
In this article:
- Public Service Loan Forgiveness Program
- Direct Consolidation Loan
- Private Loan Refinancing
- Check Out Forgiveness and Repayment Programs for Your Job
1. Public Service Loan Forgiveness Program
The Public Service Loan Forgiveness program is one of the most popular forgiveness programs available to public servants with federal student loans in different fields. These also include forgiveness from Federal Stafford Loans, among others.
If you have Parent PLUS Loans, this is the easiest way to obtain forgiveness for federal student loans and financial aid. However, there is one thing you’ll need to do.
To qualify for the Public Service Loan Forgiveness Program, your loan has to be enrolled in an Income-Driven Repayment Plan.
Among these repayment plans, only the Income-Contingent Repayment Plan (an income-based repayment plan for student loan repayment) accommodates Parent PLUS Loans.
What do you do now? Don’t worry.
This income-contingent repayment plan is connected to the second one. Together, you will be able to qualify for Parent PLUS Loan forgiveness for your federal loans.
Since your ultimate goal is to qualify for Public Service Loan forgiveness for your federal loans, make sure that throughout the entire process you submit the Employment Certification Form.
Do this annually or as deemed necessary depending on your repayment options by your loan service provider. This is to let them know that as you figure out what to do, you intend to qualify for Public Service Loan Forgiveness.
(Pro Tip: Need an easy and fast way to find out if you qualify for student loan forgiveness? Download this free guide to find the best way you can take advantage of student loan forgiveness programs and get a leg up on your education. Learn more here.)
2. Direct Consolidation Loan
Consolidate your Parent PLUS Loans into a Direct Consolidation Loan. Doing this makes your Parent PLUS Loan eligible for an Income Based Repayment Plan. Now, all you have to do is apply for the Public Service Loan Forgiveness Program.
Of course, it does not end with student loan consolidation. This means borrowers still have to fulfill the requirements of the forgiveness program.
First, you must work full-time. Second, and more importantly, you must consider repayment options for full, on-time payments for ten consecutive years.
It goes without saying that the job you have must be eligible for the program as well.
3. Private Loan Refinancing
If the first two steps do not work out, you can always seek private loan refinancing. However, you must be aware that by refinancing you are no longer eligible for loan forgiveness. These will be counted as private student loans.
Then, why is this an option, you ask?
Since, at its core, student loan forgiveness is about freeing you from student loan debt so you can focus on your education, then you should consider refinancing.
Yes, it means still having to make your loan payments in full and with interest. Yet, it also means giving you a good plan to manage your loan payments and make sure you do not enter default or deferment.
You may have forfeited your chances for loan forgiveness, but at least you are making sure you repay your loans.
4. Check Out Forgiveness and Repayment Programs for Your Job
Finally, if the first three options are not for you, you can always try for more specific types of student loan aid.
The Public Service Loan Forgiveness Program is only one of many loan forgiveness programs offered by the federal government.
Some of the other careers that are eligible for loan forgiveness are nursing and other medical professions, teaching and education, and social work. Even members of the military qualify for some student loan forgiveness.
If you end up pursuing one of these careers, you can look into more specific student debt aids. A particularly popular option is choosing the teacher loan forgiveness route, where students take up the mantle of education for loan forgiveness.
Some of them may even be able to forgive Parent PLUS Loans. Others may be open to negotiation. The only way to find out for sure, is to try.
(Pro Tip: Need an easy and fast way to find out if you qualify for student loan forgiveness? Download this free guide to find the best way you can take advantage of student loan forgiveness programs and get a leg up on your education. Learn more here.)
Watch this video from Fox Business for more information on student loan forgiveness:
The extra steps you have to take to have Parent PLUS Loans forgiven should not stop you from securing this great student loan award. Sure, living with uncertainty as you repay your loans can be exhausting. Education is important, but paying off those student loans can be a challenge.
However with this uncertainty comes an opportunity to get one of the best forms of student loan help and still qualify for forgiveness. In the end, it might all be worth the trouble.
Do you have other advice for applying for Parent PLUS Loan Forgiveness? Let us know in the comments section below.
Up Next: Public Service Loan Forgiveness Program
Editor’s Note – This post was originally published on December 14, 2017 and has been updated for quality and relevancy.
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