Things You Should Know About Parent PLUS Loan Forgiveness

Parent PLUS Loan Forgiveness is still achievable through consolidation and choosing income-contingent repayment (ICR) or public service loan forgiveness (PSLF) programs, with “double consolidation” tactics facing limitations, it is important to stay updated on loan forgiveness options.

Parent Plus Loan Forgiveness is still possible by combining and picking the right plan. (PHOTO: Good Housekeeping)

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Parent Plus Loan Forgiveness Excluded in SAVE Plan, Other Ways to Forgive Parent PLUS Loans

“Will Parent PLUS Loans be forgiven?” “Are Parent PLUS Loans eligible for forgiveness?” “Do Parent PLUS Loans qualify for loan forgiveness?” Those are the questions often asked after the Biden administration’s SAVE Plan which forgives student loans after 10 to 25 years of payments. Unfortunately, the SAVE plan doesn’t include Parent Plus Loan Forgiveness.

DON’T WORRY. CBS News reported that there are still ways to get Parent Plus Loan Forgiveness. People with these loans can combine them and then choose a special payment plan called income-contingent repayment (ICR) or join a program for public service loan forgiveness (PSLF). These choices need loan combining before signing up. This is different from a previous plan by the Biden administration that got turned down by the Supreme Court.

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ICR and PSLF Programs, the Paths for Parent Plus Loan Forgiveness, Another Tactic to Forgive Your Loans

If parents want to avail Parent Plus Loan Forgiveness, they have two options. The SAVE plan is one, but only the ICR plan is available if they combined their loans. With ICR, leftover debt can be forgiven after 25 years of payments. Or they can do the PSLF program, which forgives loans after 10 years if they work full-time in certain public service jobs. But again, only loans combined under ICR work for this.

Aside from the two ways for Parent Plus Loan Forgiveness, there’s a trick some people use called “double consolidation” to get into plans like SAVE. But this trick is getting limited and won’t work for loans combined after July 1, 2025. Experts say it’s a short-term solution, and people need to know about changes that might affect what they can do. This was reported in 12News.

To sum up, the new SAVE plan from the Biden administration helps students with loans get forgiveness, but it doesn’t include Parent PLUS loans. Still, Parent Plus Loan Forgiveness is still possible by combining them and picking the right plan. Things are changing, so it’s important to stay updated about choices and tricks for getting rid of loans.

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