I’m 29 and graduated in 2018 with a minimal amount of student loans (18k).
Covid hit and paused all payments so of course like a financially responsible adult I stopped paying…..When loans resumed I had started a graduate program (add another 55k in debt haha).
The 18k from undergrad was across 2 loans – 1 for 11k being a Parent Plus Loan.
Today my father called them to transfer the loan to me. They informed him that was not possible but he could have a bank buy out the loan and then transfer it to me.
However, the gentleman on the phone said “how much money do you make” – my father informed him he’s retired and his taxable income is very low. They then told him “we can change this to an IDR plan and more than likely your monthly payment will be $0. In 20 years the loan will be forgiven”
So in short that loan is done – I will never pay it.
Wild sequence of events for a Parent Plus Loan that’s a win for me
byu/magiccityidiot inStudentLoans
Posted by magiccityidiot
4 Comments
Yes. That’s how this works.
Yeah Parent Plus Loans are a huge W for students with older parents near retirement age. Especially if the set up is their parent is/was a stay at home spouse, supported by their partner, and can file taxes separately as all the dependents are grown. Just paying $0/month for 20 years and boom done.
Happy for you but now you know why IDR plans are going away for new Parent Plus borrowers and PP loans are capped after 7/1/26. Worst loan portfolio in history, it was inevitable.
Nice! My mother’s got forgiven somehow because she’s on disability. Never paid them once.