Parent PLUS Loan Forgiveness: How it Works
Updated on July 1, 2025
Quick Facts
Parent PLUS loan forgiveness is possible, but options are limited and differ significantly from traditional student loan forgiveness programs.
Consolidation is usually required to access key forgiveness pathways like Income-Contingent Repayment and Public Service Loan Forgiveness.
Forgiveness requires active steps. It never happens automatically. You must apply for or enroll in the specific forgiveness programs or repayment plans for which you’re eligible.
Parent PLUS loans can be forgiven, but their unique structure complicates the process. Unlike traditional student loans, Parent PLUS Loan borrowers can’t directly access most income-driven repayment (IDR) plans, significantly restricting available forgiveness pathways.
However, legitimate relief options do exist. Parent PLUS borrowers can achieve forgiveness through programs like Income-Contingent Repayment (ICR) after 25 years, Public Service Loan Forgiveness (PSLF) after 10 years of qualifying payments, or immediate discharge due to permanent disability or death.
This guide clearly explains these forgiveness pathways, highlights practical strategies, and provides dedicated resources for specialized scenarios, such as PSLF eligibility, disability forgiveness, and loan forgiveness planning for senior citizens.
4 Major Parent PLUS Loan Forgiveness Programs
Why Parent PLUS Loans Are Harder to Forgive
Parent PLUS loans operate under different federal rules than traditional student loans, significantly limiting direct forgiveness opportunities. Specifically, Parent PLUS loans can’t directly access most Income-Driven Repayment plans such as IBR, PAYE, or SAVE, leaving only standard repayment plans available without consolidation.
To access forgiveness options like Income-Contingent Repayment or Public Service Loan Forgiveness, Parent PLUS loans must first be consolidated into a Direct Consolidation Loan, which permanently changes your loan terms and resets your forgiveness timeline.
An advanced strategy, known as the Double Consolidation Loophole, may allow access to more favorable repayment plans like Pay As You Earn (PAYE) or Income-Based Repayment (IBR), but it involves specific requirements and strict deadlines.
Careful consideration is essential because consolidation can’t be reversed once completed.
Related: Complete Guide to Direct Consolidation for Parent PLUS Loans
How to Get Forgiveness Through Income-Contingent Repayment
The Income-Contingent Repayment Plan is the primary long-term forgiveness pathway for Parent PLUS borrowers, providing loan forgiveness after 25 years of qualifying payments. Under ICR, your monthly payments are based on 20% of your discretionary income or what you would pay on a fixed 12-year repayment plan, whichever is lower.
After making 300 qualifying payments (25 years), any remaining balance is forgiven. However, unlike Public Service Loan Forgiveness, the amount forgiven under ICR is currently considered taxable income. This means you may face significant tax liabilities in the year of forgiveness.
Careful planning and annual income certifications are required to maximize the benefits of the ICR plan.
How Parent PLUS Borrowers Can Qualify for PSLF
Public Service Loan Forgiveness offers Parent PLUS borrowers complete, tax-free loan forgiveness after making 120 qualifying monthly payments (10 years) while working full-time for an eligible public service employer. However, Parent PLUS loans aren’t directly eligible for PSLF.
To qualify, borrowers must first consolidate their Parent PLUS loans into a Direct Consolidation Loan and enroll in the Income-Contingent Repayment plan or another IDR Plan if they go through the double consolidation process. Regular documentation of qualifying employment is required to maintain eligibility.
Other Ways to Get Your Parent PLUS Loans Forgiven
While the primary forgiveness pathways involve long-term repayment plans or public service employment, Parent PLUS borrowers may also qualify for forgiveness under certain limited circumstances:
Disability Discharge: Borrowers with a total and permanent disability may qualify for immediate Parent PLUS loan disability discharge, eliminating their entire debt obligation.
Death Discharge: Parent PLUS loans are discharged upon the death of the parent borrower. However, the death of the student for whom the loan was borrowed does not qualify the loan for discharge.
School-Related Discharge: Forgiveness is possible if the school attended by the student closes or engages in misconduct such as fraud or false certification.
Senior Citizen & Retirement Planning: Parent PLUS borrowers approaching or already in retirement may significantly reduce their payments or even qualify for $0 payments under income-driven plans based on retirement income levels.
Each of these options involves specific eligibility criteria and application procedures.
Related: Parent Loan Forgiveness for Seniors
Recent Policy Changes That Affect Your Parent PLUS Loans
The Biden Administration introduced two critical policy changes that continue to impact Parent PLUS borrowers even after President Trump’s return to office in January 2025:
One-Time IDR Account Adjustment: This adjustment credited past repayment periods, forbearances, and deferments toward forgiveness timelines for ICR and PSLF, substantially accelerating forgiveness progress for many Parent PLUS borrowers who had consolidated their loans.
PSLF Limited Waiver: The waiver temporarily expanded eligibility criteria, allowing borrowers, including those with consolidated Parent PLUS loans, to receive credit toward PSLF forgiveness for previously non-qualifying payments.
Other broad debt-relief proposals by President Biden were blocked or never implemented, leaving these two initiatives as the lasting changes affecting Parent PLUS loans.
Borrowers should confirm their updated payment counts and eligibility directly with their loan servicer or via StudentAid.gov.
How to Apply for Parent PLUS Loan Forgiveness
There’s no single application for Parent PLUS loan forgiveness. Each forgiveness type has its own distinct application or enrollment process:
Income-Contingent Repayment: Complete a Direct Consolidation Loan application first, then select the Income-Contingent Repayment plan. Certify your income annually through your loan servicer (such as MOHELA, Nelnet, Aidvantage, or EdFinancial) or Federal Student Aid (FSA) at StudentAid.gov.
Public Service Loan Forgiveness: Consolidate into a Direct Consolidation Loan, enroll in ICR, then submit annual Employment Certification Forms via StudentAid.gov.
Disability Discharge: Submit a Total and Permanent Disability (TPD) discharge application through StudentAid.gov/disability-discharge. Note: TPD applications are no longer submitted through disabilitydischarge.com as of early 2025.
Death Discharge: Provide the loan servicer with a certified death certificate of the borrower.
School-Related Discharge: File an application for Borrower Defense to Repayment through StudentAid.gov/school-discharge.
Because each pathway has different requirements, carefully confirm the right application or process for your situation through your loan servicer or official federal student aid resources.
FAQs
Are Parent PLUS loans automatically forgiven after some period?
No. Parent PLUS loans aren't automatically forgiven after any period. Forgiveness only occurs through specific pathways such as Income-Contingent Repayment, Public Service Loan Forgiveness, or qualifying circumstances like total disability, death, or school-related discharge, each requiring active enrollment or application.
Will Parent PLUS loans be cancelled by the government?
Currently, there are no active proposals or policies to broadly cancel Parent PLUS loans. Forgiveness options remain limited to existing federal programs and specific circumstances. It's always wise to check official updates from the Department of Education for the latest policy developments.
How can I get my Parent PLUS loans forgiven?
You can achieve Parent PLUS loan forgiveness by consolidating into a Direct Consolidation Loan, enrolling in an eligible repayment plan (usually ICR), and meeting specific program requirements, such as employment in public service for PSLF, documented total disability, borrower defense eligibility, or other qualifying circumstances.
Do Parent PLUS loans get forgiven if my child dies?
Yes. Parent PLUS loans are forgiven if the student for whom the loan was borrowed passes away. They're also forgiven if the parent borrower dies. To initiate the discharge, provide your loan servicer with an original or certified copy of the death certificate.
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