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I Don’t Want to Pay My Parent PLUS Loan Anymore

By on February 3, 2015

“Dear Steve,

I helped my daughter with a parent plus loan for her last semester which was $6000.00 and I have been paying on it for quite some time.

Then she went back her second year and she filled out a 2nd parent plus loan so her payments was 50.00 per month she quit paying now for the past 4 years my taxes are taken and past 2 years I have a garnish on my paycheck after requesting documentation on the second loan it came to 26000.00 which I got it down to 19,000

CAN THE STATE GO AFTER MY DAUGHTER FOR PAYMENT ALSO SHE IS THE WHO SIGNED MY NAME FOR THE SECOND LOAN NOT ME BUT THE STATE CAME AFTER ME. I AM TIRED OF PAYING FOR A SCHOOL LOAN THAT IS NOT MINE.

Rita”

Dear Rita,

Clearly this is a most unfortunate situation.

When you take out a Parent PLUS Loan you are agreeing to be 100 percent responsible for the loan and the proceeds should be used for the child’s education. So clearly the first loan is your loan and your responsibility.

The second loan seems to be more of an identity theft issue. You would have had to have filed a police report and been willing to press charges against her for fraudulently signing your name to the loan. Most parents are unwilling to do that and instead get stuck with the loan.

I’m not certain if it is too late to pursue that route. You’d have to discuss it with a lawyer who is licensed in your state.

But there appears to be some hope to deal with your defaulted loans. See The Best Way to Lower Parent PLUS Loan Payments for information on this. Also see, The Easiest Way to Stop a Student Loan Wage Garnishment – Loan Rehabilitation.

There is a way to stop the wage garnishment, stop the tax intercepts, rehabilitate the loans, and get a monthly payment based in your income.

READ  Will the Government Come for My Social Security Over My Parent Plus Loan?

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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