Is Parent Loan Forgiveness Possible? Your Guide to PSLF and More

Yes, parent student loans can be forgiven, but only under specific circumstances. Federal Parent PLUS Loans may qualify for forgiveness through Public Service Loan Forgiveness (PSLF) or Income-Contingent Repayment (ICR).

Private loans generally don’t offer forgiveness, though some lenders may discharge them in cases of death or disability. Below, we’ll explain your options for parent loan forgiveness and alternative ways to manage your debt.

Table of Contents

1. Current parent loan forgiveness programs
2. Eligibility for Parent PLUS loan forgiveness
3. How to apply for parent student loan forgiveness
4. Alternatives

Current parent loan forgiveness programs

Federal Parent PLUS Loans help parents finance their child’s education and offer some borrower protections, including loan forgiveness. Private loans, however, do not typically offer forgiveness, though some lenders may discharge loans in cases of death or disability.

Here are the main ways Parent PLUS Loan borrowers may qualify for forgiveness or discharge:

Forgiveness type	How it works
PSLF	Work for a qualifying employer and make 120 payments under an eligible repayment plan. Requires consolidating your Parent PLUS Loan first.
ICR	Parent PLUS Loans can be repaid under an ICR plan after consolidation, with forgiveness granted after 25 years of payments.
School closure discharge	If the school closes while your child is enrolled or soon after they withdraw, your Parent PLUS Loan may be discharged.
Unpaid refund discharge	If the school fails to return loan funds after your child withdraws, you may qualify for discharge.
False certification discharge	If the school improperly certified loan eligibility, the debt may be canceled.
Disability or death discharge	If the parent or student for whom the loan was borrowed dies or becomes totally and permanently disabled, the loan is discharged.

Beyond federal programs, some state governments and employers offer parent loan assistance through:

• Student loan repayment grants or tax waivers
• Loan repayment assistance for public service workers
• Employer-sponsored repayment programs

Private student loans rarely offer forgiveness, but some lenders discharge loans in cases of the student’s or cosigner’s death. If you’re considering private loans, check lender policies before borrowing.

loans to help your child pay for school, it’s important to compare interest rates and terms to find the right lender. 

Eligibility for Parent PLUS loan forgiveness

Parent PLUS Loan forgiveness is primarily available through PSLF and ICR Forgiveness. Here’s what you need to qualify:

Public Service Loan Forgiveness (PSLF)

To qualify, you must:

1. Work full-time (30+ hours per week) for a qualifying government or nonprofit employer, including:

• Federal, state, or local government agencies
• 501(c)(3) nonprofit organizations
• Some other nonprofits providing qualifying public services

2. Make 120 qualifying payments under an eligible repayment plan

3. Consolidate your Parent PLUS Loan into a Direct Consolidation Loan before enrolling in an ICR plan

• Contractors and employees of for-profit organizations generally do not qualify.

ICR Forgiveness

To qualify, you must:

1. Consolidate your Parent PLUS Loan into a Direct Consolidation Loan

2. Enroll in an ICR plan, which adjusts payments to:

• 20% of discretionary income or
• The amount you’d pay on a 12-year fixed plan, adjusted for income

3. Make payments for 25 years before receiving forgiveness

Payments must be made on time, and annual recertification of income and family size is required.

Disability or death discharge

Parent PLUS Loans may also be discharged if:

1. The parent borrower passes away
2. The student for whom the loan was borrowed dies
3. The parent borrower becomes totally and permanently disabled and applies for a Total and Permanent Disability (TPD) discharge

How to apply for parent student loan forgiveness

Applying for Parent PLUS Loan forgiveness involves several crucial steps. Follow this process to ensure you maintain eligibility:

1. Consolidate your loans

• Required for PSLF and ICR: Parent PLUS Loans must be consolidated into a Direct Consolidation Loan before applying.
• Apply online at StudentAid.gov.

2. Enroll in ICR

• After consolidation, enroll in an ICR plan to lower your monthly payments.
• Recertify income and family size annually to stay eligible.

3. Make 120 qualifying payments (PSLF Only)

• Payments must be made under an eligible repayment plan while working full-time for a qualifying public service employer.
• Payments do not need to be consecutive.

4. Submit the PSLF form annually

• Use the PSLF Help Tool to complete and submit the form at StudentAid.gov.
• Submit it annually or whenever you change employers.

5. Apply for forgiveness

• After 120 qualifying PSLF payments, submit your final PSLF application.
• Your loan servicer will review your records and notify you of approval.

Reminders:

• Consolidation is required for PSLF and ICR.
• Autopay can help track qualifying payments.
• Missed recertifications can increase payments under ICR.
• PSLF forgiveness is tax-free; ICR forgiveness may be taxable after 2025 unless extended by new legislation.

Alternatives to parent loan forgiveness

If forgiveness isn’t an option, consider these alternatives to manage Parent PLUS Loans:

1. Loan consolidation

• Simplifies repayment by combining multiple loans into one.
• Doesn’t reduce your interest rate, but may lower your monthly payment by extending your term.
• Apply through StudentAid.gov.

2. Refinance

• Can lower your interest rate and reduce monthly payments.
• Requires good credit and stable income.
• Converts federal loans to private, meaning you’ll lose federal protections such as forbearance and income-driven repayment.

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3. Income-driven repayment (IDR) plans

• Income-Contingent Repayment is the only IDR plan for Parent PLUS Loans.
• Lowers payments based on income, with forgiveness after 25 years.
• Requires a Direct Consolidation Loan first.

Each option has trade-offs, so compare carefully before deciding.