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I Got Parent PLUS Loans When I Was Unemployed

Written by Steve Rhode


Dear Steve,

When my daughter was entering her last semester of college, I applied and received a Parents Plus loan for her, even though I was unemployed at the time. Fast forward 5 years, and my employment has changed, but I am deadlocked in a permanent part time position with no chance of going full time. My gross monthly income is $1400.00. I continue to look for a better job, and will remain hopeful. I have not been able to make any payments on this loan and am running out of deferment options. I have read about working to repay college loans and wonder if you know about this and could pass on information.

Is it possible to “work off” parent plus loan debt?



Dear Kathy,

If the loan is in deferment and in good standing than you should look at putting the loan into a Direct Loan and entering an Income Contingent Repayment plan that will give you payments based on 20 percent of the difference of the poverty level and your income.

You can click here for more information. There is no charge by the government for doing this.

But keep in mind, this will extend out your loans and can result in a higher balance. However, it will give you a lower payment, as low as $0, that you will better be able to deal with.

After you do this, if you happen to work for a non-profit or in some public service field, your loans may be forgiven after 120 payments. See this.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

READ  Can We Consolidate Our Parent Plus Loans and Go For PSLF?

About the author

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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