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Income based payment plan for parent plus loan

By Terry Savage on January 15, 2022 | College Savings / Student Loans

I have a parent plus loan of about 133K. The loan is on my name. I am retired. We are on on my social security income and my wife’s income of 50K. I was thinking of moving to an income based payment plan for this loan based on my social security income alone. As a first step, I have to consolidate the loan. Since we have been filing a joint return all along, the student loan site wants my wife also to cosign the the loan and I understand that if anything were to happen to me. she will become responsible to repay the loan. I want to avoid that. To do that , starting from this year, can I start filing independently and then apply for this program. What will be the downside to that? Is that reversible?

Terry Says

There is an attorney in Chicago who is an expert at dealing with these issues. And your situation is so complex, I think you should contact Rae Kaplan at (312) 294-8989. Do it BEFORE you take any action.

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