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Parent PLUS loan forgiveness provides financial relief to parents who borrowed money to cover the cost of their children’s college or career school. It isn’t always a quick fix, but there are certain federal and private programs that might offer the financial forgiveness needed.
Keep reading to learn more about the available student loan forgiveness possibilities for Parent PLUS loans.
Key Points
• Parent PLUS loans may be eligible for forgiveness through programs such as Total and Permanent Disability Discharge (TPD), the Income-Contingent Repayment (ICR) Plan, and Public Service Loan Forgiveness (PSLF).
• The ICR plan is currently available to Parent PLUS borrowers after Direct loan consolidation.
• PSLF requires 120 qualifying payments and employment of the borrower (the parent, not the child) in a qualifying public service job.
• TPD discharge applies if the parent, not the student, has a disability.
• Parent PLUS loans cannot be directly transferred to the student, but the student could refinance the loan in their own name and assume the financial obligation for it.
Are Parent Plus Loans Eligible for Student Loan Forgiveness?
Parent PLUS loans are eligible for several of the same student loan forgiveness programs as federal student loans for students, including:
• Borrower Defense Loan Discharge
• Total and Permanent Disability (TPD) Discharge
• Public Service Loan Forgiveness (PSLF)
That said, Parent PLUS loans generally have fewer repayment and forgiveness options. Parent PLUS loans do not directly qualify for most income-driven plans. And guidelines are strict for the programs that parent loans are eligible for.
Refinancing Parent PLUS loans is another option for borrowers. With refinancing, you apply for a new loan from a private lender that ideally has a lower interest rate.
It’s important to note that refinancing a PLUS loan will eliminate it from any federal repayment plans and benefits.
💡 Quick Tip: Some student loan refinance lenders offer a no-required-fees option, saving borrowers money.
Parent Student Loan Forgiveness Program
As mentioned above, a Parent PLUS loan may be eligible for parent student loan forgiveness through the Public Service Loan Forgiveness program. To qualify, the loan must be repaid under the Income-Contingent Repayment Plan (ICR). Other forgiveness options may also be available through a borrower’s state or in certain situations as outlined below.
Income-Contingent Repayment (ICR)
An Income-Contingent Repayment plan is the only income-driven repayment plan that’s currently available for Parent PLUS borrowers. In order to qualify, parent borrowers must first consolidate their loans into a Direct Consolidation Loan, then repay that loan under the ICR plan. Bear in mind:
Bear in mind:
• A Parent PLUS loan that’s included in a Direct Consolidation Loan could be eligible for Income-Contingent Repayment.
• A Parent PLUS loan that’s included in the Federal Direct Loan Program or the Federal Family Education Loan Program (FFELP) is also eligible for ICR if it’s included in the Federal Direct Consolidation Loan.
It’s important to be aware that as of July 1, 2026, the ICR plan will be changing, as a result of the big U.S. domestic policy bill that was passed in the summer of 2025. Parent PLUS loan holders must consolidate their loans before July 1, 2026 and enroll in ICR. Any Parent PLUS loans consolidated after that date will not be eligible for ICR.
The ICR plan is an income-driven repayment plan. Monthly payments are the lesser of what you would pay on a repayment plan with a fixed monthly payment over 12 years, adjusted based on your income, or 20% of your discretionary income. After a payment period of 25 years, any remaining loan balance will be forgiven.
Typically, the IRS considers canceled debt a form of taxable income, but the American Rescue Plan Act of 2021 made student loan forgiveness tax-free through 2025 on federal returns. Some states tax student loan forgiveness amounts; you can consult with a tax professional about your situation.
Public Service Loan Forgiveness (PSLF)
Qualified borrowers with Parent PLUS loans may be eligible for the Public Service Loan Forgiveness Program. In order to pursue that option, they must first consolidate the Parent PLUS loan into a Direct Consolidation Loan.
Then, after they’ve made 120 qualifying payments, borrowers may become eligible for the PSLF. The parent borrower (not the student) must be employed full-time in a qualifying public service job. PSLF also has strict requirements such as certifying employment, so it’s important to follow instructions closely if pursuing this option.
Student Loan Forgiveness for Death of Parent
Federal student loans qualify for loan “discharge” when the borrower dies. In the case of Parent PLUS loans, they are also discharged if the student who received the borrowed funds dies.
In order to qualify for federal student loan discharge due to death, borrowers must provide a copy of a death certificate to either the U.S. Department of Education or the loan servicer.
Some, but not all, private lenders discharge student loans after the student or loan holder dies.
Recommended: Can Student Loans Be Discharged?
State Parent PLUS Student Loan Forgiveness Programs
Many individual states offer some sort of student loan repayment assistance or student loan forgiveness programs for Parent PLUS loan borrowers.
For an overview of options available in different states, you can take a look at SoFi’s student loan forgiveness guide.
Disability
In the event of the borrower becoming totally and permanently disabled, a Parent PLUS loan may be discharged. To qualify for a Total and Permanent Disability (TPD) discharge, borrowers must complete and submit a TPD discharge application, as well as documentation showing that they meet the requirements for being considered totally and permanently disabled.
Note that in order to qualify for TPD, the parent borrower must be considered disabled. This type of forgiveness does not apply to Parent PLUS loans in the event that the student becomes disabled.
Bankruptcy
If a borrower can demonstrate that repaying a Parent PLUS loan would be an undue financial hardship on them, they might be able to have the loan discharged in bankruptcy. However, the process is complicated. First, the borrower must file an action known as an “adversarial proceeding.” They must also file for bankruptcy and show the bankruptcy court that undue hardship would be the result if they paid the loan.
Having student loans discharged in bankruptcy is challenging. Proving undue hardship varies depending on the court that’s granting it, but many rulings look at these criteria these criteria in order to discharge the student loan:
• Maintaining a minimal standard of living for the borrower and their dependents is deemed impossible if they’re forced to repay their student loans.
• The borrower’s current financial situation will likely continue for the majority of the repayment period.
• The borrower has made a “good faith” effort to repay their student loans.
Closed School Discharge
For parent borrowers whose children attended a school that closed while they were enrolled or who withdrew from the school within 180 days before its closure, a Closed School Discharge is another available form of student loan forgiveness that may be an option.
If you meet the eligibility requirements for a discharge of loans you obtained for your child to attend a school that closed, your loan holder will automatically send you an application you can submit to your loan servicer.
Or you can contact your loan servicer for an application.
Borrower Defense
Borrower Defense Loan Discharge is potentially available to Parent PLUS borrowers whose children were misled by their college or university or whose college or university engaged in certain forms of misconduct or violation of state laws.
To make a case for borrower defense, the Parent PLUS borrower must submit a “materially complete” application that contains such information as what the school’s misconduct consisted of and when it occurred, how the misconduct affected your child’s decision to attend the school or your decision to take out the Parent PLUS loan, and a description of the harm experienced because of the misconduct.
💡 Quick Tip: Federal parent PLUS loans might be a good candidate for refinancing to a lower rate.
Alternatives to Parent Plus Student Loan Forgiveness
When it comes to Parent PLUS loans, there are a few ways to get out of student loan debt, including the scenarios outlined below.
Refinance Parent Plus Loans
Refinancing a Parent PLUS loan is another option that could provide some financial relief. However, in doing so, you’ll lose the government benefits associated with your federal loans, as briefly mentioned above, such as:
• Forbearance options or options to defer your student loans
• Income-driven repayment options
• Student loan forgiveness
Refinancing a Parent PLUS loan into your child’s name is another option, which some borrowers opt for once their child has graduated and started working. Some private lenders offer this type of refinancing option to those who qualify, but not all do.
Transfer Parent Plus Student Loan to Student
Transferring Parent PLUS loans to a student can be complicated. There isn’t a federal loan program available that will conduct this exchange, and, as mentioned above, some private lenders don’t offer this option.
However, other private lenders, like SoFi, allow qualifying dependents to take out a refinanced student loan, which pays off the PLUS loan of their parent.
Explore Private Student Loan Options for Parents
Banks, credit unions, and online lenders typically offer private student loans for parents who want to help their children pay for college as well as refinancing options for parents and students.
Refinancing options will vary by lenders and some may be willing to refinance a Parent PLUS loan into a private refinanced loan in the student’s name. In addition to competitive interest rates and flexible terms, SoFi does allow students that qualify to take over their parent’s loan during the refinancing process. Interest rates and terms may vary based on individual criteria such as income, credit score, and history.
The Takeaway
Parent PLUS Loan forgiveness offers financial relief to parents who borrowed money to help their child pay for college. To receive federal relief for Parent PLUS loans, parent borrowers have options such as enrolling in the Income-Contingent Repayment plan, pursuing Public Service Loan Forgiveness, taking advantage of a state Parent PLUS student loan forgiveness program, or opting for student loan refinancing.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
What do I do if I can’t pay my Parent PLUS loans?
If you can’t pay your Parent PLUS loans, you have a few options. You may be able to qualify for Public Service Loan Forgiveness (you’ll need to consolidate the loans first); refinance the loans, which may lower your monthly payments; or consolidate them and repay them through the Income-Contingent Repayment Plan. You can also check to see if your state offers forgiveness programs for Parent PLUS loan borrowers.
Can I transfer my Parent PLUS loans to my child?
You cannot directly transfer your Parent PLUS loans to your child. However, some private lenders may allow you to do something similar through refinancing. Here’s how it works: As long as they meet the eligibility requirements, your child refinances the loan in their name, which pays off the original loan and transfers all financial responsibility to them. Just be aware that refinancing federal student loans makes them ineligible for federal benefits and protections.
Can a Parent PLUS loan be discharged due to disability?
Yes, a Parent PLUS loan may be discharged due to disability if the parent borrower (not the student) becomes totally and permanently disabled. This is called a Total and Permanent Disability (TPD) Discharge, and to qualify, the parent must submit a TPD discharge application along with the appropriate documentation showing they meet the requirements.
SoFi Student Loan Refinance
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