If you took out so-called Parent Plus loans for your child, “you should know there are options for reduced payment as well as possible forgiveness,” said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit that will helps student loan borrowers with free advice as well as dispute resolution.
Parent borrowers may be eligible for reduced payments, Mayotte said, including the extended as well as graduated repayment plans. If you consolidate the Parent Plus loan into a “direct” loan, you could enroll in an income contingent repayment plan, which caps your monthly payments at a percentage of your income as well as typically results from the cancellation of your debt after 25 years. “This particular can be particularly helpful for retired parents on fixed incomes,” Mayotte said.
Parents can also appeal to the Education Department to be put in a so-called alternative repayment plan, Kantrowitz said, which also comes with reduced monthly payments.
Many parent borrowers don’t realize they are potentially eligible for public service loan forgiveness, Mayotte said. that will program allows certain not-for-profit as well as government employees to have their federal student loans canceled after 10 years of on-time payments.
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