Add news
March 2010 April 2010 May 2010 June 2010 July 2010
August 2010
September 2010 October 2010
November 2010
December 2010
January 2011
February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023 April 2023 May 2023 June 2023 July 2023 August 2023 September 2023 October 2023 November 2023 December 2023 January 2024 February 2024 March 2024 April 2024 May 2024 June 2024 July 2024
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
24
25
26
27
28
29
30
31
News Every Day |

Can Parent Student Loans Be Forgiven?

Parent student loans are loans a parent takes out to help pay for school on behalf of an eligible student. The federal government offers the Parent PLUS Loan program for parents of dependent undergraduate students. Parents can also take out private student loans for their children. 

You may be eligible for parent loan forgiveness with a federal PLUS loan. Private student loan lenders may offer cancellation if you co-signed loans for your child and they pass away. Read on to learn when and how you may qualify to have parent student loans forgiven.

Current parent loan forgiveness programs 

Federal Parent PLUS Loans are designed for parents of dependent undergraduate students who need help paying for school. Parent borrowers enjoy some of the same benefits and protections as students, including:

Private student loans are issued by private lenders. Lenders determine loan rates, repayment terms, and fees. Private student loans lack the most important features associated with federal student loans, including options for loan forgiveness. 

The Department of Education offers parent PLUS loan borrowers several ways to seek forgiveness, including:

Here’s an overview of how each one works. 

Forgiveness typeHow it works
PSLFPublic service job + 120 qualifying payments 
ICRLoans forgiven after 25 years
School closureSchool closed, so you couldn’t complete program 
Student withdrawalSchool didn’t refund loan money upon withdrawal
School didn’t refund loan money upon withdrawalSchool falsely certified eligibility for aid

If you’re interested in PSLF, you must first consolidate your PLUS loans into a Direct Consolidation Loan. You can apply for a consolidation loan through the StudentAid.gov website. Once you’ve done that, you can enroll in an Income-Contingent Repayment plan. 

Here’s how ICR works:

  • Payments are capped at 20% of your discretionary income or what you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income. 
  • Repayment lasts for 25 years.
  • The remaining loan balances can be forgiven at the end of the repayment term. 

You must recertify your eligibility for ICR each year. Recertification considers your household income and family size. 

Parents may also seek forgiveness if the student they took out PLUS Loans for becomes totally and permanently disabled, or passes away. Loans are also dischargeable if the parent passes away. 

Other options for parent loan forgiveness can include employer-sponsored or state-sponsored programs. Your employer’s human resources department can explain available student loan assistance or forgiveness options.

At the state level, parent borrowers might be able to receive:

  • Income tax waivers
  • Student loan repayment assistance
  • State income tax credits
  • Rebate programs for borrowers who are buying a home

The Department of Higher Education in your state should be able to tell you what kind of loan assistance might be available. 

What about private student loans? Again, private student lenders are not obligated to follow the same rules as federal loans. A private lender could offer discharge or cancellation in the event of permanent disability or death, but they’re not required to. 

If you’re considering private student loans to help your child pay for school, it’s important to compare interest rates and terms to find the right lender. 

Eligibility for Parent PLUS loan forgiveness 

Public Service Loan Forgiveness and Income-Contingent Repayment are the two primary ways to seek parent loan forgiveness through the Department of Education. Each one has specific requirements.

To qualify for PSLF, parents must work full-time for an eligible employer in a public service job. Eligible employers include:

  • U.S.-based government organizations
  • Tax-exempt 501(c)(3) nonprofit organizations
  • Other nonprofits that devote a majority of their full-time equivalent employees to offering qualifying public services

Full-time employment is 30 hours per week or more. Parents can also qualify if they volunteer for the Peace Corps. 

Contractors are not eligible, with some exceptions. If you work for a labor union, partisan political organization, or any for-profit organization, that won’t count as eligible employment for PSLF.

You’ll need to make 120 qualifying payments for PSLF. Payments don’t need to be consecutive. The Department of Education encourages borrowers to enroll in autopay to easily track payments toward their final count. 

Qualification for Income-Contingent Repayment is based on household size and income. The Department of Education uses federal poverty guidelines to calculate discretionary income and establish plan payments. Again, you must first consolidate your PLUS loans into a Direct Consolidation Loan to apply for ICR. 

How to apply for parent student loan forgiveness 

The Department of Education has a PSLF process parents will need to complete to apply for loan forgiveness. It’s important to ensure you understand what’s required at each stage to make sure you maintain your eligibility. 

  1. Consolidate your loans. If you haven’t consolidated your loans into a Direct Consolidation Loan yet, you’ll need to do that to be eligible for PSLF. You can apply for a Direct Consolidation Loan through the Department of Education website.
  2. Enroll in ICR. Once you’ve consolidated your loans, you can apply for an ICR plan. This should lower your monthly payments. Again, you’ll need to recertify your eligibility for ICR annually. 
  3. Complete the required payments. You’ll need to make all 120 qualifying payments while working for an eligible employer to apply for PSLF. That means, at a minimum, it will take 10 years to become eligible for this type of loan forgiveness. Note that it could take longer if you have periods of employment with a nonqualifying employer. 
  4. Fill out the PSLF form. You’ll use the PSLF form to certify your qualifying employment. You’ll need to submit this form annually or whenever you change employers and again when you complete the 120 required payments. You can submit your form using the Department of Education’s PSLF Help Tool.

Once you’ve submitted your PSLF form after making 120 payments, your loan servicer will receive your application. Your lender will notify you of whether your application is approved or denied. This part of the process can take up to 90 days, depending on your employment history and whether any follow-up information is needed. 

Here are some key things to remember when seeking PSLF:

  • Don’t forget that you must consolidate your PLUS loans to be eligible. 
  • While you could opt for a Standard Repayment plan, you may not have anything left to forgive. 
  • Remember to submit an updated PSLF form annually or any time you change employers. 
  • Use the PSLF Help Tool to make sure you’re providing the Department of Education with all the information needed to determine your eligibility. 
  • Consider enrolling in autopay to ensure that you’re making complete and on-time payments to your loans. 
  • If you’re in danger of falling behind on payments, reach out to your loan servicer to discuss forbearance or deferment options. 
  • Note that loan amounts forgiven through PSLF are not considered to be taxable income. 

If you’re trying to get forgiveness through ICR, you’ll need to make your required payments on time each month and recertify your information each year. If you fail to recertify on time, you can stay in the plan but your payments will no longer be calculated based on your monthly income. 

By the end of 2025, amounts forgiven under an ICR plan are not considered taxable income. However, that could change if the federal government doesn’t introduce legislation to extend this benefit beyond 2025. So you may need to factor in potential tax consequences when considering ICR forgiveness. 

Alternatives to parent loan forgiveness

When exploring options for managing parent student loans, if loan forgiveness isn’t a possibility, the following are viable alternatives.

Loan consolidation

Loan consolidation is a practical alternative to parent student loan forgiveness. It simplifies debt management by combining multiple loans into a single loan with one monthly payment. Unlike forgiveness programs, which can take years and have strict eligibility criteria, consolidation is more accessible. 

However, consolidation might extend your loan term, potentially increasing the total interest paid. Forgiveness can completely eliminate debt, but consolidation focuses on simplifying repayment.

Refinance

Refinancing parent student loans can lower your interest rate, reducing your monthly payments. This aims to make your loan more affordable rather than canceling it. You can save money over time, but refinancing requires a good credit score and a stable income. 

Refinancing a federal loan converts it to a private loan, removing potential federal protections such as deferment or forbearance. In contrast, student loan forgiveness relieves the debt burden.

Income-driven repayment plans

Income-driven repayment plans adjust your payments based on your income, making them more affordable. This doesn’t eliminate debt but makes it more manageable. These plans may lead to eventual forgiveness after 20 to 25 years of consistent payments, offering long-term relief. 

However, the extended repayment period means you’ll pay more interest over time. Income-driven plans can provide immediate relief compared to the lengthy process of loan forgiveness.

The post Can Parent Student Loans Be Forgiven? appeared first on LendEDU.

Москва

Врач Болибок: в РФ не ожидается эпидемии листериоза, подобной коронавирусной

Exclusive - Sayantani Ghosh expresses happiness as sets of her show Dahej Daasi shifted close to her home; says 'I've been manifesting this for quite some time now'

Mikel Arteta demands more Arsenal signings as he gives cryptic update on Riccardo Calafiori transfer

TV fame Drashti Dhami shares her workout routine during the pregnancy; see video

Suspect arrested for ‘threatening to kill Trump and his VP pick JD Vance’ in Florida days after assassination attempt

Ria.city






Read also

How to have an online party with friends: Fun ideas and apps

Desalination plant proposed for San Francisco Bay

Economic, foreign policy vision: VP Kamala Harris must 'hone message for post-industrial states'

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

Mikel Arteta demands more Arsenal signings as he gives cryptic update on Riccardo Calafiori transfer

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

TV fame Drashti Dhami shares her workout routine during the pregnancy; see video



Sports today


Новости тенниса
Елена Веснина

«Никто не вправе давать советы». Веснина рассказала, почему нужно ехать на Олимпиаду



Спорт в России и мире
Москва

Брутальный стюард из соцсетей работает на рейсе Москва - Благовещенск



All sports news today





Sports in Russia today

Москва

Спортивные игры в СЛД "Москва-Сортировочная" филиала "Московский"


Новости России

Game News

Warner Bros acquires MultiVersus devs as it shifts focus to free-to-play


Russian.city


Москва

Представители «Метровагонмаш-Сервиса» посетили СЛД «Москва-Сортировочная» филиала «Московский» компании «ЛокоТех-Сервис» для обмена опытом


Губернаторы России
Магомед Исмаилов

Запашный пришел поддержать Исмаилова перед боем с Минеевым


Отрытый конкурс красоты и таланта «Одна на миллион»

Суд обязал Сергея Шнурова и его агента вернуть 90 млн руб за сорванный концерт

Филиал № 4 ОСФР по Москве и Московской области информирует: С начала 2024 года 140 тысяч женщин и новорожденных Московского региона получили услуги по родовым сертификатам

Спортивные игры в СЛД "Москва-Сортировочная" филиала "Московский"


Певец Shaman получил звание заслуженного артиста РФ

Джазовый оркестр Игоря Бутмана выступил в Твери в рамках юбилейного гастрольного тура

В Гатчине представят оперу «Самсон и Далила» Камиля Сен-Санса

Рэпер ST пообщался с молодёжью до начала фестиваля «Место силы — Владивосток»


Теннисистка Мария Шарапова снялась без макияжа и укладки

Рейтинг ATP. Рууд обошел Рублева, Берреттини вернулся в топ-50, Надаль поднялся на 100 строчек

«Никто не вправе давать советы». Веснина рассказала, почему нужно ехать на Олимпиаду

Шнайдер прошла в финал турнира WTA в Будапеште



Путин назначил Романа Курынина замглавы МЧС России

Филиал № 4 ОСФР по Москве и Московской области информирует: За полгода 14,9 тысячи жителей Московского региона оформили страховую пенсию в автоматическом режиме на портале госуслуг

22 июля Всемирный день мозга. Отвечаем на популярные вопросы о когнитивных расстройствах 

Представители «Метровагонмаш-Сервиса» посетили СЛД «Москва-Сортировочная» филиала «Московский» компании «ЛокоТех-Сервис» для обмена опытом


Today's Wordle answer for Saturday, July 20

Рифат Сабитов вошел в состав Рабочей группы по регулированию блогосферы под руководством Петра Толстого

Shaman объяснил, почему выступил у посольства США в Москве

Собянин рассказал о создании пешеходных зон у причалов столицы


Путин поклонник SHAMANa? Песков объяснил ошеломительный успех Ярослава Дронова в России

Отец погибшей байкерши МотоТани рассказал о последней встрече с дочерью

Путин: поставки энергоресурсов из России в Китай достигают рекордных объёмов

В России зарегистрировано 55,06 млн автотранспортных средств



Путин в России и мире






Персональные новости Russian.city
Певица

Певица Ионова-Глюк’oZa объяснила свое неадекватное поведение на концерте в Красноярске



News Every Day

Exclusive - Sayantani Ghosh expresses happiness as sets of her show Dahej Daasi shifted close to her home; says 'I've been manifesting this for quite some time now'




Friends of Today24

Музыкальные новости

Персональные новости