Are Parent Plus Loans EverForgiven?
Parent Plus loans, a type of federal student loan designed to help parents pay for their children’s college education, have been a lifeline for many families. However, with the increasing cost of higher education and the heavy burden of student loan debt, many parents are left wondering: Are Parent Plus loans ever forgiven? This article delves into the various circumstances under which Parent Plus loans may be forgiven, providing clarity and hope for those struggling with these loans.
Understanding Parent Plus Loans
Parent Plus loans are offered by the U.S. Department of Education to help parents finance their children’s college expenses. These loans are credit-based, meaning that parents must pass a credit check to qualify. Unlike other federal student loans, Parent Plus loans do not have a fixed interest rate and can be used for a wide range of educational expenses, including tuition, fees, room and board, and other related costs.
Eligibility for Forgiveness
While Parent Plus loans are not automatically forgiven, there are several circumstances under which they may be discharged. Here are some of the most common situations:
1. Total and Permanent Disability (TPD): If a borrower becomes totally and permanently disabled, they may be eligible for loan forgiveness. This requires a certification from a medical professional stating that the borrower is unable to work and is expected to remain disabled for at least 60 months.
2. Death: In the event of the borrower’s death, Parent Plus loans are typically discharged. However, this depends on the circumstances of the borrower’s death and whether they had a co-signer.
3. Closed School: If the school the borrower’s child attended closes before the borrower’s child completes their program, the borrower may be eligible for loan forgiveness. This is known as the closed school discharge.
4. False Certification: If the borrower’s loan was based on false or misleading information provided by the school, the borrower may be eligible for loan forgiveness.
5. Borrower Defense to Repayment: If the borrower can prove that their school engaged in deceptive practices or violated state or federal law, they may be eligible for loan forgiveness under the Borrower Defense to Repayment program.
Other Options for Loan Relief
In addition to loan forgiveness, there are other options available to parents struggling with Parent Plus loans:
1. Income-Driven Repayment Plans: These plans adjust the borrower’s monthly payment based on their income and family size. This can help make loan payments more manageable.
2. Deferment and Forbearance: Borrowers may be eligible for deferment or forbearance, which allows them to temporarily stop making payments or reduce their monthly payment amount.
3. Loan Consolidation: Consolidating Parent Plus loans with other federal student loans can simplify repayment and potentially lower the interest rate.
Conclusion
While Parent Plus loans are not automatically forgiven, there are several circumstances under which they may be discharged. Understanding the eligibility requirements and exploring other loan relief options can provide parents with the hope and support they need to manage their student loan debt. As the cost of higher education continues to rise, it is crucial for parents to be aware of their options and seek assistance when needed.
