Are Parent Plus Loans Eligible for PSLF?

Parent PLUS loans are loans that a parent takes for undergraduate students so that they can pay the expenses of their studies. These loans are preferred more as they have easy and flexible repayments. In case of any delay or non-payment, the legal guardian or the parent is responsible for it. If the child/students say that he/she will pay back the loan then also as per the law the parents are answerable.

Fixed rate of interest that is charged against the amount of loan. The rate of interest of the parent plus loan is generally higher than all other loans and also more than the Private student loans. A parent has to pay around 7.06% interest for the parent PLUS loan, the ROI may surge as per the time. 

These loans are given as per the credit history of the applicant. The borrower has to decide/whether he/she can give back the loan or not. The bank will give them the loan without checking the income. Parent has to ensure themself about the amount that they are taking. In case the applicant dies due for any reason, the parents need not have to repay the loan as it gets waived off. 

What is a Parent PLUS Loan?

The Parent Plus loan is generally given to the parent or the lawful guardian so that they can use the money to bear the cost of the study of the applicant. The amount of the loan is calculated as per the lectures(attendance) of the applicant and deducts any sort of financial aid that the candidate might have received from any source.

These loans are specifically given only to the guardian or both parents. The loan is not similar to other private loans that can be co-signed. The interest on the PLUS loans is initiated as the applicant or the parent takes the money from the account. 

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Are Parent Plus Loans Eligible for PSLF

Are parent-plus loans eligible for PSLF?

The parent PLUS loans are entitled to the Public Service Loan Forgiveness Program(PSLF). The program was initiated in 2017. In this, if the applicant has paid the loan amount for 25 years then the remaining loan payment is waived-off after 25 years automatically. The process of the Public Service Loan Forgiveness(PSLF) is quite complicated but can be understood if you scrutinize every piece of information carefully.

  • The payments that a person makes on direct loans are covered in this. The applicant has to first check the kind of loan in case he/she wants to come under the PSLF program. 
  • The borrower has to get themself enrolled for the qualifying repayment plan. This is because the loans that come under the standard plan are generally repaid in 10 years, so get yourself registered under the Income-Contingent Repayment plan.
  • The candidate has to make at least 120 payments and the payment should be done between the 15 days of the due date. In case the payment is made later on then it will not be covered in 120 payments.
  • The applicant has to give an employment certification form to the person who has sanctioned the loan to get entitled to the Public Service Loan Forgiveness Program(PSLF). 


Can parent-plus loans be forgiven under PSLF?

The parent PLUS loans are one of direct loans and they qualify for the PSLF. These loans can be forgiven under PSLF. 

Are Parent PLUS loans forgiven after 10 years?

The Parent PLUS loans get forgiven after 10 years but there are certain conditions. There is an extra benefit of these loans as these loans are never regarded as taxable income.

Are Parent PLUS loans forgiven if the parent dies?

As per the sources, the parent PLUS loans are forgiven in case the applicant for whom the loan is taken dies due for any reason. All the documents that verify the death of a person should be submitted.

Are both parents responsible for the Parent PLUS loan?

For the Parent PLUS loans both the parents are accountable to pay back the loan. In case the students agree to return the loan then also, the parents are legally responsible in case of non-payment of the loan. 

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