Yes, Parent PLUS loans can be forgiven through Total and Permanent Disability (TPD) discharge, but only if the parent borrower (not the student) becomes totally and permanently disabled, meaning their condition prevents substantial work and is expected to last at least 60 months, with eligibility determined by SSA data matching or application and medical certification. This relief offers a pathway to discharge federal student loans if the parent meets strict disability criteria, applying to the parent's health, not the child's.
Yes, as a veteran, if you are awarded a 100% disability determination by the Department of Veterans Affairs (VA), you are eligible for Total and Permanent Disability (TPD) discharge, which can forgive your federal student loans, including Parent PLUS loans. This means you don't have to repay these loans.
You can achieve Parent PLUS loan forgiveness by consolidating into a Direct Consolidation Loan, enrolling in an eligible repayment plan (usually ICR), and meeting specific program requirements, such as employment in public service for PSLF, documented total disability, borrower defense eligibility, or other qualifying ...
The government doesn't forgive Parent PLUS Loans when you retire or draw Social Security benefits, but it has programs that will wipe out your remaining balance after you've made a number of student loan payments under an income-driven repayment plan.
You will lose repayment plan options and restart the clock on PSLF and other forgiveness programs. You can learn more about the consolidation process here . Act quickly to avoid default. Default can result in consequences like garnishment of your wages, federal tax return, or Social Security.
Parent Plus loans are federal loans that allow parents to borrow money to help pay for their child's undergraduate education expenses. In the event that the parent borrower passes away, the government will discharge and forgive the remaining Parent PLUS loan debt.
Federal Parent PLUS Loans opens in new tab are loans taken out by parents of dependent undergraduate students, enrolled at least half-time, to help pay for their child's college expenses. Parents are responsible for repaying Parent PLUS loans.
Look for a lender that offers cosigner release. This allows the primary borrower (your child) to release the cosigner (you) from the loan once they've met specific criteria, such as a having made a certain number of consecutive on-time payments, meeting minimum credit requirements, and providing proof of income.
Parent PLUS Loans are not excluded from PSLF, but they are not eligible for all income-driven repayment plans. Parent PLUS borrowers can consolidate their debt to access the ICR plan and thus, PSLF. ICR is the least generous of the IDR plans.
However, Parent PLUS Loans will be capped at $20,000 per student per year and a $65,000 lifetime limit beginning July 1, 2026. Parents who borrowed before that date can continue borrowing under the current limits for up to three additional years or until their student completes their program. Good news.
Parent PLUS loans are educational loans, and the borrower can claim an income tax deduction. When borrowers review their tax deductions, they can deduct up to $2,500 per year in interest paid on the Parent PLUS loan. Income limits and other tax filing rules may apply.
Total and Permanent Disability (TPD) means a severe injury or illness prevents someone from working in any suitable occupation for the rest of their life, often due to conditions like paralysis, loss of limbs/eyes, or severe brain injury, qualifying them for lifelong insurance or government benefits, such as loan forgiveness or VA benefits, as certified by a physician.
If you are totally and permanently disabled, you may qualify for the discharge of your federal student loans and/or Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation.
Eligible borrowers identified as totally and permanently disabled through data matching with the Social Security Administration (SSA) will automatically have their federal student loans discharged.
Your parent PLUS loan may be discharged if you (not the child) become totally and permanently disabled, die, or (in some cases) file for bankruptcy. Your parent PLUS loan also may be discharged if the student for whom you borrowed dies.
Generally, no. But there are certain circumstances where children may have to pay off the debts left by their parents. A son or daughter will have to pay the debt of their mother or father, for example, if the childco-signed on a loan or is a joint account holder on a credit card.
Parent PLUS Loans are eligible for total and permanent disability discharge if the parent borrower, not the student for whom you borrowed, is totally and permanently disabled.
There is no forgiveness available to Parent PLUS Loan borrowers looking to retire. Remember that Parent PLUS Loan forgiveness is only possible through the Income-Contingent Repayment Plan or PSLF after first consolidating your Parent PLUS Loan into a federal Direct Consolidation Loan.
The law also sets new caps on the federal loans parents can borrow to pay for their child's undergraduate education, also known as Parent PLUS loans. Effective July 1, 2026, new parent borrowers will be prohibited from borrowing more than $20,000 per year and $65,000 total per child.