FAFSA Parent PLUS loans eligibility for PSLF with 3 kids in different education stages

I went thru this last year and found out the hard way that Parent PLUS loans DON'T automatically qualify for PSLF!!! You have to CONSOLIDATE them into a Direct Consolidation Loan first before they count toward forgiveness. I wish someone had told me this before I took out $38k for my daughter!!

I can provide some clarity on PSLF and Parent PLUS loans. Here's what you need to know: 1. Parent PLUS loans are not directly eligible for PSLF on their own 2. You must consolidate Parent PLUS loans into a Direct Consolidation Loan to make them eligible 3. After consolidation, you must enroll in an Income-Contingent Repayment (ICR) plan - this is the only income-driven plan available for consolidated Parent PLUS loans 4. Only after these steps will your payments count toward the 120 qualifying payments needed for PSLF First steps: - Complete the FAFSA with your children (each needs their own) - If Parent PLUS loans are offered in your financial aid package, accept them - After disbursement, apply for consolidation at studentaid.gov - Select ICR as your repayment plan - Submit PSLF Employment Certification Forms annually Since you already have 8 years of federal service, you're in a good position, but only payments made after proper consolidation and while on ICR will count toward PSLF.

just fyi dont get confused abt PSLF vs the new SAVE plan. different things. SAVE might give u lower payments but PSLF is actual forgiveness after 10 yrs

One strategy to consider: You can either consolidate each loan as you take it out, OR wait and consolidate multiple Parent PLUS loans together later. There are pros and cons to each approach. Consolidating immediately: Starts your PSLF payment count sooner Consolidating later: More convenient to manage one loan, but delays PSLF progress Since you're juggling 3 kids at different stages, I'd recommend consolidating annually - maybe each summer after the academic year. This balances starting your PSLF clock while not creating too many separate loans to manage. Also, make sure your oldest applies for grad PLUS loans for medical school rather than having you take more Parent PLUS loans. Grad PLUS loans qualify for better repayment plans (including PAYE and SAVE) and PSLF without the consolidation requirement.

Just went through this mess with 2 kids in college. Parent PLUS loans are THE WORST! The interest rates are ridiculous (7.54% right now) and they start accruing interest immediately!! And the PSLF process is a nightmare - they deny people for tiny paperwork errors all the time. I'd seriously consider whether you want to go this route or look at other options.

I spent hours trying to reach someone at Federal Student Aid about my Parent PLUS loan consolidation issues last month. Finally used Claimyr (claimyr.com) to get through to an actual person instead of waiting on hold forever. They have a demo video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent confirmed that with my federal employment, I needed to not only consolidate to Direct Loans but also submit the PSLF certification form every year. Apparently lots of people miss years of potential qualifying payments by not filing the employment certification regularly. Worth the call to get everything set up correctly from the start.

Regarding the credit check question: Parent PLUS loans do require a credit check, but it's looking specifically for "adverse credit history" rather than a specific credit score. You would be denied if you have: - Delinquent debt over 90 days on $2,085 or more - Collections, charge-offs, repossessions in the past 2 years - Default, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of federal student debt in the past 5 years If you have generally paid bills on time but maybe have high credit utilization or other score factors, you'd likely still be approved. And even with a denial, you can either get an endorser (co-signer) or document extenuating circumstances to still receive the loan. Also worth noting: if you're denied a Parent PLUS loan due to credit, your dependent student becomes eligible for additional unsubsidized loans (up to $4,000-$5,000 more per year depending on year in school).

my sister works at financial aid office and she says lots of parents dont realize that parent plus loans r in THE PARENTS NAME only!! ur kids have zero legal responsibility to pay them back even if thats the plan. just fyi

One more crucial thing to understand: PSLF requires 120 *qualifying* monthly payments, which means you need to: 1. Work full-time (30+ hours/week) for a qualifying employer 2. Make payments while on an income-driven repayment plan 3. Make payments on time If you expect to continue federal employment for at least 2 more years (to reach the 10-year requirement), then consolidating Parent PLUS loans makes sense. Also, consider timing: Since your oldest is a senior, their loans will enter repayment soon. Your middle child's loans won't enter repayment for 5+ years. If you consolidate separately, you could potentially have some loans forgiven earlier than others. One strategy some federal employees use is to minimize Parent PLUS loans by having the student maximize their direct subsidized/unsubsidized loans first, then only use Parent PLUS for the remaining amount needed.

As someone who's navigating federal employment and student loans, I want to add a timing consideration that might help with your planning. Since you have 8 years of federal service already, you only need 2 more years to hit the 10-year PSLF requirement. Given your kids' ages, here's what I'd consider: - Your oldest (senior year) - any Parent PLUS loans you take now could potentially be forgiven in just 2 years if you consolidate immediately - Your middle child (starting college next year) - these loans would be forgiven after 3 years of payments - Your youngest (still in middle school) - you have time to reassess the program and rates when they're ready for college The key is getting that consolidation done ASAP after taking out each Parent PLUS loan and making sure your employment certification is filed every year. Don't wait until you have all the loans - start the PSLF clock ticking on each one as soon as possible. Also double-check that your current federal position qualifies for PSLF. Most do, but it's worth confirming with HR or using the PSLF Help Tool on studentaid.gov.