Ask Terry Questions Parent Plus loans

Parent Plus loans

By Terry Savage on December 26, 2023 | College Savings / Student Loans

I am retiring and have a $780 payment due in February in PPL loans. I cannot pay this which I now know and my only option would be to retire and use some of my 401K to do so. I know this not a smart move but I have no other options. Thanks!

Terry Says

I’m not sure that is your only option. They are now recalculating outstanding debt, and payments made, and you may get loan forgiveness of the balance. And they just extended the time to do this until April 30, 2024.
Read this:

YOu’ll want to consolidate your loans with any that your child still has, which gives them a better chance at forgiveness, too. And then apply for a new income-based repayment plan under SAVE (see article). And, with a little bit of luck, your balance (and perhaps someof theirs) will be forgiven.

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