Comments on: A Guide to Parent Plus Loan Repayment

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Wed, 30 Aug 2023 20:52:29 +0000

In reply to Ted. That is a really tricky question. I suppose the divorce decree could specify who is responsible for making the payments, but as far as the Department of Education is concerned, the name of the parent on the loan is the person responsible, and I'm not aware of any mechanism to change the parent responsible for an existing loan.

By: Ted

Ted — Wed, 30 Aug 2023 15:41:51 +0000

In reply to Michael P. Lux, Esq.. Thanks Mike. I am also wondering if a divorcing couple could arrange to have the obligation to make PLUS loan payments transferred to the partner with the much lower income or the partner who is closer to death and minimize payments that way.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Tue, 29 Aug 2023 21:03:48 +0000

In reply to Ted. That is a really interesting question. You are correct that the debt gets forgiven, and for now, there definitely isn't a tax, but in the future there could be. Would the IRS go after your estate in that case? I really don't know. Ultimately, answering this question requires tax law expertise and practical tax experience that I don't have.

By: Ted

Ted — Tue, 29 Aug 2023 00:58:06 +0000

Inasmuch as any loan balance would be forgiven in the event of my death, is this forgiven amount considered to be taxable income as far as the IRS is concerned?

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Thu, 01 Sep 2022 01:13:58 +0000

In reply to Karen. Unfortunately, the Limited Waiver on PSLF (which does expire on 10/31) does not cover Parent PLUS loans.

By: Karen

Karen — Thu, 01 Sep 2022 00:51:32 +0000

If I have a parent plus loans and consolidate them into a Direct Loan before 10/31/22, will my payments count towards the PSLF with the waiver?

By: The Student Loan Sherpa

The Student Loan Sherpa — Mon, 15 Jul 2019 21:13:57 +0000

In reply to Barbara Carroll.

120 payments need not be consecutive.

How many of the necessary 120 payments do you have? I’d send in an employer certification form ASAP to find out where you stand if you don’t already know this answer.

By: Barbara Carroll

Barbara Carroll — Sun, 14 Jul 2019 11:58:01 +0000

I have a parent plus loan. I qualified for the PSLF program along with the income driven repayment plan 4 years ago, I have 6 years left. I have been working for a non for profit qualifying hospital for the past 21 years. I now have an opportunity to advance my career to increase my income by 30% but I would be employed by a for profit organization. The PSLF form states neither the 120 qualifying payments nor the employment have to be consecutive. If i take this job will it cancel out my eligibility for PSLF even if I have worked for a non for profit all of these years?