Student Loans — PLUS loan repayment
I have a parent plus student loan taken out for my daughter. The current payment is nearly $1000.00 per month. Is there any way of lowering that payment. I heard you on WGN radio some time ago on this subject and I am now expected to start payments again.
That would depend on your income. You could get an ICR — income contingent repayment plan, and lower the monthly payment. That bases the monthly payment on 20% of the borrowers discretionary income, which is defined as the amount by which the borrower’s adjusted gross income exceeds 100% of the poverty line.
Then the remaining loan balance is forgiven after a 25-year repayment term. But to qualify for this treatment a borrower must consolidate their PLUS loan into a Direct Consolidation Loan — and then repay the consolidation loan under the income-contingent repayment plan.
OR, if you work full time in a qualifying public service job, you might be able to enter the Public Service Loan Forgiveness program, which would forgive the loan balance after10 years.
It’s hard to get good specific advice on this — so if you think you might want to purse either of these routes, I recommend you contact student loan expert Rae Kapla. Here’s a link to her website.