Parents who take advantage of federal loans to help with college tuition costs are in a position where they have not only repayment assistance options available on these college loans but there are potential opportunities for forgiveness as well, but depending on the situation, a parent may not be allowed to take advantage of all opportunities that could make their loan in a more affordable or offer forgiveness. Yet, parent loans, like the PLUS loan do offer assistance plans if a parent is having trouble repaying their own as deferment, forbearance, and even lower payment opportunities on parent college loans can be made available in some cases, but this is where parents must look at their particular situation as to whether they qualify.
In cases where parents may have multiple loans, one of the options that has been used in the past has usually surrounded consolidation as parent loans that are consolidated may be more affordable in terms of the monthly payment that parent receives, as interest rates that may be available on a parent loan could be around 7.9%, which is a fixed rate, but of course if multiple loans are in place some parents have found that consolidating to one interest rate may be helpful despite the fact that a higher principle amount will have to be paid.
Yet, parents may also be in a position to take advantage of the cancellation of their loans if they qualify for the public service loan forgiveness program, as this plan allows borrowers of federal student loans to have their remaining balance discharged after making 120 payments, or simply paying in a timely manner for 10 years. Obviously, we have seen a great deal of news as of late surrounding student loans, which are hoped to be altered in a way that will allow students to get more affordable rates and even be able to have their loans forgiven after 20 years in repayment, when this ten year forgiveness option is not available, but parent loans may still be in the category where these traditional assistance options will be needed.
Since each situation will differ, parents are often urged to contact their federal loan lender/servicer to get more information on a specific situation, as different types of loans may have different assistance opportunities open to the borrowers, but in many cases parents who are struggling to repay their federal student loan do need to remember that opportunities are typically available in terms of more affordable payments, consolidation options, and even these forgiveness plans, if a high amount of debt is in place. Parents, like student borrowers, are not guaranteed to be able to qualify for forgiveness plans or certain types of opportunities, but when circumstances are in place that prevent a parent from paying the total amount that is due on their loans on a monthly basis, many have found that these forgiveness or payment reduction plans can be helpful when it comes to avoiding missing payments.
Again though, some qualifications do have to be met my parents but the cancellation of these loans or the simple consolidation options and payment reduction plans that many parents seek do oftentimes come as one aspect of these loans, in the area of repayment assistance needs, so borrowers of parent loans who are struggling financially and may need help are often urged to look at these opportunities quickly so that they can avoid financial setbacks that may prevent them from honoring this debt in an affordable way.