Are you a parent who took out a Parent Capital Plus Loan to put your child through college? Paying back that Parent Plus Loan can be tough and you can jeopardize your own retirement.
If your having trouble making payment, you might want to consider an income contigent Parent Plus Loan Repayment Plan. To accomplish you will have to consolidate your loan into a direct consolidation loan by contacting your student loan servicer.
What Is My Payment If I Quality For An Income Contingent Parent Plus Repayment Program?
Income Contingent Repayment caps the payment of 20% of your borrower’s discretionary income. Remember discretionary income is usually less then the gross amount of income and it’s a term of art in the student loan world?
What Are The Pro’s And Con’s?
The Income Contingent Repayment Plan will result in a lower monthly payment and will allow Parent Plus Loans to be discharged after 25 years.
However, the problem is that the accrued interest charges will increase over time.
You can determine whether an Income Contingent Parent Plus Loan Repayment plan is right for you by comparing how much the forgiveness is worth compared to the added costs.
What Should I Do?
Contact the Student Loan Law Resolution Center at (727) 828-9955 for a consultation.