Parent PLUS Loans: How They Work, Loan Forgiveness, And More

This is one of the most common questions I get almost everyday - I can't afford my Parent PLUS Loans, what do I do?

I'm a firm believer that parents should NOT be taking out loans to pay for their children's' education. There are a lot of reasons why it's a bad idea, and I cover most of them in my Forbes column.

The fact is, though, if you're reading this article, it's too late. You've already borrowed and now you're struggling to pay it back. And the most common way that parents borrow money to pay for college is through Parent PLUS Loans.

They sound like a good idea - parents can get Federal loans with all the great benefits that students get. The trouble is, that's wrong. In fact, Parent PLUS Loans taken out after July 1, 2026 don't offer any type of income-based repayment plan nor do they qualify any type of student loan forgiveness programs (well, once again, this is nuanced as well and we discuss below).

In fact, the options are extremely limited with Parent PLUS Loans. You have a few workarounds, but typically student loan refinancing or working together as a family are your best bets. If you're considering refinancing, we recommend Credible. There are some lenders that will allow you to even refinance your Parent PLUS loan into your child's name. Check out Credible here, and if you do refinance, get up to a $1,000 bonus!