Parent PLUS Student Loan Tools and Tips

Parent PLUS loans have special rules and limitations, but many great resources are available to keep debt manageable.

Written By: Michael P. Lux, Esq.

Last Updated: April 10, 2024

Did you know?

Parent PLUS Loans are issued to the child and not the parent.

This means that the child has no legal responsibility to repay the debt, and it only appears on the parent's credit report.

Borrower Protections

If the borrower or the child for whom the loan was borrowed dies, the debt is eligible for immediate discharge.

This protection isn't something families want to think about, but it can become really important if tragedy strikes.

Parent PLUS Loan Basics

Repayment of Parent PLUS loans is a bit more complicated than most other federal student loans. Our Guide to Parent PLUS Repayment covers repayment plan selection, enrollment, and much more.

Qualifying for loan forgiveness is tricky with Parent PLUS loans, but it can be done. Borrowers that wish to qualify for programs like Public Service Loan Forgiveness have to jump through a few extra steps.

Child Responsibilities

Children don't have a legal requirement to repay the debt, but there are many ways children can help their parents manage their Parent PLUS Loans.

If your child refuses to help with the Parent PLUS debt, options for the parent are somewhat limited.

Parents can transfer the debt to the child if the child refinances the Parent PLUS Loans in their own name.

Using Parent PLUS Loans to Pay for School

Parent PLUS Loans are popular because getting approved is fairly easy compared to private loans, and the Parent PLUS loans offer some federal borrower perks and protections.
Parents that wish to help their child pay for school need to consider cosigning private loans, Parent PLUS Loans, and HELOC loans.

Digging Deeper Into Life with Parent PLUS Loans

Living on Social Security makes debt repayment a challenge. Fortunately, Social Security recipients can often qualify for $0 per month payments on their Parent PLUS loans.

If you have federal student loans in your name and Parent PLUS loans borrowed for your child, be sure to avoid the biggest Parent PLUS mistake if you have to consolidate.