Parent PLUS loans borrowers need to apply for student loan debt forgiveness

If you’re a parent who has Parent PLUS loans, you might be eligible for Joe Biden’s student loan forgiveness plans. See below to learn more about qualification and how to apply.


by Aline Barbosa

Published on 10/14/2022

Eligible parents who took out the loan will need to apply for forgiveness this month.

parent PLUS loans
Parents with Parent PLUS loans can also apply for debt forgiveness. Source: Adobe Stock.

The Student Loan Forgiveness plan, announced by President Joe Biden on August 24 provided a collective sigh of relief for many student borrowers – but not just them. Many student parents with Parent PLUS loans were also contemplated. 

That is because the forgiveness plan to cancel up to $20,000 of student loan debt for borrowers who make $125,000 or less annually also includes parents who have taken out the Parent PLUS to assist their children in paying for their college education. Eligible parents can apply for student loan forgiveness as well as their kids. 

According to The Century Foundation, about 3.7 million families have taken Parent PLUS loans. That makes it a median debt of $29,600 per family, with a total of $104 billion owed. In this article, we’ll show you which parents and which loans are part of the student loan forgiveness. And how they can apply to cancel their debt. 

What are Parent PLUS loans?

Basically, Parent PLUS loans are federal student loans that parents can apply in order to pay for their children’s higher education. The PLUS is an acronym for “Parent Loan for Undergraduate Students” and is now outdated. According to the Department of Education, these parent loans are now called “Direct PLUS loans”. 

These loans are not subsidized, which means that the parents have to pay interest on them while their kids are enrolled in school. There’s a fixed interest rate, which is currently at 7.54%. That is much higher than the student interest rate, which is 4.99%.

Which parents are eligible for Parent PLUS debt forgiveness?

Any parent who holds Parent PLUS loans with the government, and who earned $125,000 or less, or $250,000 for a household in the last two years should qualify. Once the White House plan is enacted, they should get at least $10,000 in student loan debt forgiveness. Even if they have defaulted on the loan, it should not disqualify them for Biden’s forgiveness plan. 

What about Pell Grants forgiveness for parents? 

parent PLUS loans
Parents who received Pell Grants qualify for the extra $10,000. Source: Adobe Stock.

All student borrowers who received Pell Grants during their period in college are eligible for an extra $10,000 in student debt loan forgiveness, making it a $20,000 total. This rule also applies to parents who have taken the Parent PLUS loans, but only if the parents themselves received Pell Grants while in college. 

Meaning that if a parent who didn’t receive a Pell Grant while in college holds Parent PLUS loans for a child who did receive it, the parent is not eligible for the extra $10,000 in student loan forgiveness – only the original $10,000. However, if a parent who did get a Pell Grant as a student has Parent PLUS for a child who didn’t, the parent qualifies for the $20,000 total. 

How can parents apply for Parent PLUS loans forgiveness?

For starters, parents who have Parent PLUS loans need to apply for debt forgiveness separately from their children. In order to do so, they need to access their FSA account and confirm their personal information along with the loan details. 

When the White House launches their student loan debt forgiveness plan, parents will have to file their claim using their account credentials. 

Can parents with student debt of their own apply?

Right now, each student loan borrower can get a $10,000 or $20,000 loan forgiveness. It doesn’t matter whether the debt was incurred as a parent or as a student. Parents are able to ask for debt forgiveness for their own student loans as well as their Parent PLUS loans. However, the total amount of forgiven debt cannot be higher than $10,000 or $20,000 with the Pell Grant. 

Student loan debt forgiveness: Your ultimate guide!

Follow the link below to learn everything you need to know about Joe Biden’s new plan for student debt loan forgiveness. Check for eligibility, loan forgiveness amount and how you can apply for it online.

student loan relief

Student loan debt forgiveness: Your ultimate guide

Find out how you can apply and get as much as $20,000 of student debt canceled.

About the author

Aline Barbosa

Aline Barbosa is an editor, writer and learning-enthusiast. Passionate about music, books and human behavior. Curious about the unknown. Believer that learning is a life-long process.

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