There are a few Parent Plus Loan options available to parents and guardians who wish to help their children finance their education. These include transfer of the Parent Plus Loan to the student, refinancing the Parent Plus Loan, or taking out a private loan in the child’s name. Each option has its own pros and cons, so it is important to research each one carefully before making a decision.
Ultimately, it is up to the parent or guardian to decide which option is best for their child’s unique situation.
There are a few things to consider when asking if Parent Plus Loans can be transferred to the student. The first is that not all lenders will allow for this type of transfer. You will need to check with your specific lender to see if they have this option available.
The second thing to consider is that there may be fees associated with transferring the loan, so you will want to factor that into your decision. And finally, you will need to make sure that the student is able to make the payments on the loan before making the transfer. If you are considering transferring a Parent Plus Loan to your student, be sure to do your research and talk to your lender first.
There may be some drawbacks, but it could also end up being a great solution for everyone involved.
Parent Plus Loans: Everything You Need to Know Part 1
Do Parent Plus Loans Qualify for Forgiveness?
Parent PLUS loans can qualify for forgiveness under certain conditions. For instance, if the parent borrower dies or becomes totally and permanently disabled, the loan will be forgiven. If the student for whom the parent borrowed dies, the loan is also forgiven.
Parent PLUS loans can also be forgiven if they are consolidated into a Direct Consolidation Loan. There are several ways to have your Parent PLUS loan forgiven: 1) Death or Disability Discharge: If you die or become disabled, your federal student loans will be discharged and you (or your cosigner) will no longer be responsible for repaying them.
You must submit documentation of your disability to your loan servicer to qualify for this discharge option. To have your Parent PLUS Loan discharged due to death, you must provide a copy of the death certificate to your loan servicer. Loans that are discharged due to death or disability are not taxable.
2) Public Service Loan Forgiveness: If you work full-time for a government organization or a non-profit organization that has been designated as a 501(c)(3) by the IRS, you may qualify for forgiveness of the remaining balance of your Direct Consolidation Loan after making 120 qualifying monthly payments on that loan while employed full time by such an organization. You must make these payments after October 1, 2007, and before October 1, 2017. Only payments made on a Direct Consolidation Loan made under either the Standard Repayment Plan or an income-driven repayment plan count toward this 120-payment total required for Public Service Loan Forgiveness.
You can find out whether any of your current employers meet these requirements at www.[employer].org/qualifyforpslf .
3) Perkins Loan Cancellation and Discharge: A portion of your Perkins Loan may be cancelled (forgiven) if you serve in certain occupations such as teaching or law enforcement or in areas with shortage needs like nursing or medical technology. Up to 100% of your Perkins Loan may be cancelled depending on how long and what type of service you perform. Cancellation benefits generally range from 15% to 70% depending on when during repayment and which occupation qualifies.
* Also, if you become disabled or die while serving in qualifying employment, 100% of the outstanding balance on your Perkins Loan will be discharged (cancelled).
Can Parent Plus Loans Be Transferred to the Student Reddit?
There are a few different types of student loans available to help cover the cost of college, including parent PLUS loans. Parent PLUS loans are federal student loans that are taken out by parents in order to help pay for their child’s education. These loans can be transferred to the child once they reach adulthood, but there are a few things to keep in mind before doing so.
For one, the interest rate on Parent PLUS loans is typically higher than other types of student loans. This means that if you transfer the loan to your child, they will likely have a higher monthly payment. Additionally, any outstanding balance on the loan will need to be paid off before it can be transferred – meaning that if you have a high balance, it may not make sense to transfer the loan at all.
Finally, keep in mind that transferring a Parent PLUS loan is not always an option – it depends on the lender and type of loan you have. If you’re unsure about whether or not you can transfer yourParent PLUS loan, contact your lender for more information.
Credit: www.forbes.com
Can Parent Plus Loans Be Transferred to Student After Graduation
When a student takes out a Parent PLUS Loan, the borrowing parent is the primary borrower on the loan. However, after the student graduates or leaves school, they can request to have the loan transferred into their name. This process is known as a “direct consolidation loan” and can be done through the Department of Education’s Direct Consolidation Loan program.
There are several reasons why a student might want to consolidate their Parent PLUS Loans into their own name. For one, it can help them get a lower interest rate on the loans. Additionally, consolidating multiple loans into one can make repayment easier and more manageable for the borrower.
If you’re considering consolidating your Parent PLUS Loans after graduation, there are a few things to keep in mind. First, you’ll need to make sure that all of your loans are eligible for consolidation – not all federal loans are able to be consolidated. Secondly, you should compare interest rates and terms before consolidating to ensure that you’re getting the best deal possible.
Finally, remember that consolidating your loans will extend your repayment period, so make sure you’re prepared to make payments for an extended period of time before consolidating.
Conclusion
If you’re the parent of a college student, you may be considering taking out a Parent PLUS loan to help your child pay for school. But what happens if your child graduates or drops out before the loan is paid off? Can you transfer the loan to your child?
The answer is yes, but there are a few things to keep in mind. First, you’ll need to contact your lender and request that the loan be transferred. You’ll also need to make sure that your child is able to take on the responsibility of the loan payments.
And finally, know that transferring the loan may result in a higher interest rate. If you’re considering taking out a Parent PLUS loan, talk to your lender about whether or not it can be transferred to your child. It’s an important decision and one that should be made with care.
