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Maximizing Student Loan Forgiveness: Strategies for Parent PLUS Loans

Melanie Meths Abangan|Financial Topics|November 09, 2023
Maximizing Student Loan Forgiveness: Strategies for Parent PLUS Loans

Student loan forgiveness programs have become a lifeline for countless borrowers struggling with the burden of educational debt. While public service loan forgiveness and income-driven repayment plans have been in the spotlight, many borrowers with Parent PLUS Loans may not be aware of the available opportunities. In this article, we'll discuss into how parents with these loans can take advantage of various strategies to maximize their loan forgiveness.

Section 1: Understanding the Current Landscape

In recent times, the U.S. Department of Education, under the Biden-Harris administration, has introduced initiatives to provide financial relief to millions of borrowers. These borrowers are those who have been repaying their loans for more than a year and whose balances have exceeded their initial borrowed amounts. To benefit from these initiatives, understanding your payment history and eligibility is crucial.

Section 2: Double Consolidation for Parent PLUS Loans

For Parent PLUS Loans, which often come with less generous relief and subsidy options compared to those for graduates, it's important to explore alternative pathways to loan forgiveness. One such strategy is the "double consolidation." To embark on this journey, borrowers need to consolidate their loans twice, a process that can substantially reduce their monthly payments. However, do note that you can't just have one loan because then you can't do two consolidations. You need at least three to four loans to be able to pull this off.

We have tried processing it with as low as three loans. But essentially what you do is you consolidate the first time to get access to any type of of public service loan forgiveness program. Once they have been consolidated, you can enroll into what's called Income Contingency Repayment, which is meant for Parent Plus Loans. And then, we could do a second consolidation and enroll those loans into the SAVE program, which has more generous repayment parameters. You will be able to pay lower amount instead of 20% of the discretionary income formula.

Being able to double consolidate your loans would help you gain access to different programs that would help get lower monthly payments towards your loans. After the double consolidation is completed for your parent plus loans, you would want to consider the 2 factors below:

a. Choosing the Right Employer

Knowing your employer and whether it qualifies as a public service institution can make a significant difference. Even if you are a private contractor for a public service entity, you might still be eligible for loan forgiveness. This option is particularly advantageous in states like California and Texas, where private contractors can also benefit and that the new regulation that just came out July this year has made significant help for borrowers who were hired by private contractors to gain access to Public Service Loan Forgiveness.

b. Income-Driven Repayment and the SAVE Program

By enrolling your loans in income-driven repayment plans tailored for Parent PLUS Loans, you set the stage for your journey towards loan forgiveness. Subsequently, you can embark on a second consolidation, where these loans are enrolled in the Save Program, a program offering more generous repayment parameters. This strategy often results in lower monthly payments, making loan repayment more manageable.

Section 3: Anticipating Challenges

Parents who have taken out Parent PLUS Loans may face unique challenges when it comes to loan forgiveness. One common scenario is when one parent works for a public service institution while the other is a stay-at-home parent or has a lower income. The allocation of loans under one parent's name can significantly impact eligibility for forgiveness. Proper planning and understanding the implications of loan distribution can be vital in such cases.

Section 4: Seeking Professional Advice

Navigating the complex world of student loan forgiveness and repayment strategies can be daunting. To ensure you make the best decisions for your financial future, consider seeking advice from professionals who specialize in student loan management. Services like LoanSense can provide expert guidance and tailored solutions to suit your specific needs.


Maximizing student loan forgiveness for Parent PLUS Loans requires a clear understanding of available programs and strategies. By staying informed, taking advantage of the double consolidation option, and carefully considering your financial circumstances, you can significantly ease the burden of educational debt. Remember, seeking professional advice from experts in the field is a wise step to make informed decisions. With the right knowledge and strategies in place, you can take control of your financial future and achieve your goals.

If you need personalized assistance or have questions about your specific situation, our experts at LoanSense are here to help. Visit our website at to learn more about our services and get in touch. You may also check out our YouTube Channel for more informative discussions and topics related to student loan debt.

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