After all qualifying loan payments are complete, you can submit an application. Once approved, the remainder of your parent PLUS loans will be forgiven tax-free.
Regarding this, can a student pay back a parent PLUS loan?
Only the parent borrower is required to pay back a Parent PLUS Loan, as only the parent signed the master promissory note for the Parent PLUS Loan. The student is not responsible for repaying a Parent PLUS Loan.
In this regard, can I pay a parent PLUS loan off early?
Yes, you can pay off Parent PLUS Loans early. Parent PLUS Loans are federal student loans, which can be paid off any time with no prepayment penalty. You may choose to pay off Parent PLUS Loans early, or you may decide to use those funds to save more for retirement.
How do I consolidate a parent PLUS loan?
Step 1: Apply for a Direct Consolidation Loan through StudentLoans.gov. Step 2: Talk to your loan servicer and choose ICR. Step 3: Make payments on time for 25 years to get your loans forgiven. Pay any potential tax bills related to your loan forgiveness.
What happens if I dont pay my parent PLUS loan?
While your parent PLUS loans are in default, the government can garnish your wages and take your tax refunds and Social Security checks, among other consequences. Defaulted loans also aren’t eligible for different repayment plans, or deferment or forbearance.
What is the fastest way to pay off a parent PLUS loan?
Stick to the standard repayment plan
You can pay less each month under other parent PLUS loan repayment options, such as extended repayment or Income-Contingent Repayment. But these plans lower your bills by increasing your repayment term, so standard repayment is the fastest option for repaying parent loans.