Here are some ways parents can get student loan forgiveness.
Here are the facts.
Parents may wonder if they can cancel student loans as part of their ongoing search for student loan forgiveness. There is good news. Parents with student loans must take steps to have their student loans forgiven. You need to follow these steps.
How to get student loan forgiveness
Parents with federal student loans may be eligible for student loan cancellation, as can most other student loan forgiveness options. Parents who have borrowed a Parent PLUS loan to pay for college for their child have many options for student loan forgiveness. These include:
- Public service loan forgiveness
- Repayments based on income
- Public Service Loan Forgiveness: How to cancel Parent PLUS loans
Are Parents eligible for loan forgiveness?
Yes, Parent PLUS loans can be forgiven. Public service loan forgiveness, for example, is an option. Parents with Parent PLUS loans can be eligible for the Public Service Loan Forgiveness Program. Student loan borrowers must work full-time for a qualified non-profit or public service employment under this program. It’s not your job that matters with public service loan forgiveness. It’s actually your employer. You could be eligible if you work for the federal government. Working for the federal government would not qualify for loan forgiveness. After the public outcry, ( Biden) stopped challenging student loan forgiveness
How do I enroll?
An income-driven repayment plan is a good option. These plans will set your monthly payment based upon your discretionary income and your family size. There are four types of income-driven repayment plans: Income-Based Repayment, Pay As You Earn(PAYE), Revised PAYE (REPAYE), Income-Contingent Repayment, and IBR. Only ICR is possible for student loan forgiveness for Parents PLUS Loans. Contact your student loan servicer for details. Only federal student loans are eligible for income-driven repayment programs. You will have to recertify your income each year. Your monthly student loan payment is 20% of your discretionary income. You should also submit an Employment Certificate Form every year to the U.S. Department of Education and when you change employers.
What amount of student loan forgiveness are you eligible for?
Public Service Loan Forgiveness: After making 120 monthly student loans payments, you will be able to cancel your student loan balance.
Income-driven student loan repayment: After 20 years of undergraduate student loans or 25 years of graduate student loans, your student loan balance can be forgiven completely.
Remember to consolidate Parent PLUS Loans
You will need Direct Loans to be eligible for public service loan forgiveness. If you have a parent PLUS loan, consolidate your Parent PLUS loans with the U.S. Department of Education. This will make your Parent PLUS loan a Direct Consolidation loan. You can then enroll in Income-Contingent Repayment. You may wish to wait until your youngest child graduates from college if you have multiple children. This will allow you to include all of your Parent PLUS Loans.
If you are already enrolled in public-service loan forgiveness but have had payments deemed ineligible in the past, complete this limited waiver for student loan forgiveness.
Will your student loans get canceled?
You might be curious if Parent PLUS Loans could be canceled by large-scale student loan cancellation. Well, it depends. Sen. Elizabeth Warren (D.MA) and Senate Majority Chuck Schumer(D-NY), have suggested canceling up to $50,000 in student loans for borrowers. Although the plan was blocked in Congress, they are now hopeful that President Joe Biden will sign an executive ordering to cancel student loans for millions. While some parents may be eligible, others may not. ( Who won’t receive student loan forgiveness? Any proposed student loan cancellation could only apply to Direct Loans, for example. To qualify, Parent PLUS Loans might need to be consolidated before they can be used. Warren and Schumer propose a $125,000 annual income limit. If you are a parent with Parent PLUS loans and earn more than the income threshold, student loan cancellation would not be possible. There is no indication that Congress or President will cancel student loans on a large scale. If you are looking for student loan relief, then you will have more success focusing on income-driven repayment plans or loan forgiveness by the public service.
You will soon be able to get temporary student loan relief, so make sure that you have a plan for student loan repayment. Contact us now to get your student loan forgiveness.