Parent PLUS Loan Borrowers Can Be Eligible for Public Service Loan Forgiveness

Although there are several strategies to save for a college fund, the rising cost of higher education means that many families no longer have enough funds to afford college costs. As a result, families are using student loans. You can apply for a student loan on your child's behalf as a parent. The Parent PLUS Loan is what it's called. Does PSLF (Public Service Loan Forgiveness) apply to Parent PLUS Loans?

Even though getting your child to college may require taking out an education loan, doing so can be extremely difficult if you have a low income. The good news is that you can qualify for student debt reduction if you work in public service. For those who accept often low-paying employment with the government or NGOs, the PSLF program offers a way to get some of their student loan debt forgiven.

The parent borrower, not the beneficiary student, is accountable for the debt in the Parent PLUS Loan. For your biological or adopted child, you receive the loan. The cost of college determines how much you can borrow. Typically, the interest rate on the loan is fixed. You will have your credit score checked as part of the application screening process.

Are Parent PLUS Loans eligible for Public Service Loan Forgiveness?

You might be wondering whether the PSLF program can provide assistance if you work in public service and are dealing with college debts that were taken out for your child. The PSLF program does not directly accept Parent PLUS Loans. To get the relief, you can follow a few simple measures.

How Parent PLUS Loan borrowers can qualify for the Public Service Loan Forgiveness program

After working in public service for at least 10 years, the PSLF program forgives your college debt. Another prerequisite is that you must have paid off the loan with at least 120 monthly installments. After your years of public service, the program cancels any remaining student loan debt.

While you are still employed by the government, you must submit a relief application. You must change a Parent PLUS Loan into a Direct Consolidation Loan in order for it to qualify for the PSLF. Consolidating student loans is intended to qualify the debt for an income-driven repayment plan, which is required to enter the PSLF program.

The prior payments won't count toward the necessary 120 monthly installments if you don't consolidate your student loans directly. Your employment in the public sector prior to the amalgamation does not count either. You must complete the consolidation as quickly as possible if you're interested in the public service loan forgiveness program.

Can my Parent PLUS Loan be forgiven if I don’t work in public service?

To be eligible for the PSLF program, you must hold a full-time position in the public sector. In fact, if you spent a significant amount of time in public service before retiring, you are not eligible for the benefit. However, borrowers of Parent PLUS Loans have additional options for finding relief.

For instance, if you suffer a chronic disability, you can be released from the debt. If the child for whom you took out the college loan passes away, the debt might also be forgiven. You can also be released from the Parent PLUS Loan if it was discovered that identity theft was responsible for the falsification of your loan eligibility.