Who is eligible for Public Service Loan Forgiveness?

In order for the borrower of a Parent Plus loan to qualify for Public Service Loan forgiveness, does the parent or student have to be employed by a qualified public service organization?

2 Answers

  • nancy
    Lv 7
    2 years ago

    It is based on the borrower's employment, so the parent would need to be employed by a qualified public service organization. But, it may not be worth the effort. Parent PLUS borrowers may not repay using income based repayment options. Student borrowers can choose an income based repayment option which, typically, gives them a lower payment than they would have under a standard repayment plan. As a result, they are likely to have a significant balance that would be available for forgiveness after making the required 120 payments. Borrowers of a Parent PLUS can't use an income based repayment plan, so there isn't likely to be much of a balance left after you make 120 payments. The one work-around is if the parent has student loans of his/her own. If that's the case, then the PLUS can be consolidated with the other loans, and the consolidated loan would be eligible for an income based repayment plan. You can find full information about the program at https://studentaid.gov. However, not all of the information is in the main section on loan forgiveness programs, so you have to follow some of the links to get the full scoop on this program. You should also be aware that this program is a lot of effort and very few people are successful. Of about 40,000 applications so far, only about 300 people have been approved (that's less than 1%), mostly because of minor errors in paperwork. The Department of Education has recently announced that they plan to improve things, but the Trump Administration has called for elimination of the program, so it's doubtful that much will be done to improve a program that is slated to be phased out.

  • Anonymous
    2 years ago

    The parent must be employed by a qualified public service organization and make 10-years of qualifying payments.

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