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How Can I Deal with an Unaffordable Parent PLUS Loan After Bankruptcy?

By on August 2, 2016


Dear Steve,

The Financial Aid dept. at Lincoln Collage of Technology, Indpls, In., at the time of meeting regarding a parent plus loan, would not take my husbands financial info as “he was not present at that meeting” , but only took mine (the mother), and I hardly made anything at my MLM business (if you want to call it that), and I didn’t figure I’d qualify (and shouldn’t have), but did to my amazement; that was at the time when the colleges were approving everyone whether they could afford it or not (that was about 2006)

We have since gone through Chapter 13 bankruptcy and the loan was in forebearance until our recent discharge and we now have to begin paying again on the loan. Since my name is the only one on the loan, is my husband responsible? I make no income now and we are still struggling. Is there some kind of forgiveness or cancellation since they knew I would not be able to afford this.

Is my husband still responsible even though he never was listed on or signed the loan?

Patti G.


Dear Patti,

The obvious solution here would be to quickly consolidate your Parent PLUS loan into a Direct Consolidation Loan and then get on the Income Contingent Repayment plan because this is a consolidation of a Parent PLUS loan. Your payment will be as low as $0 per month based on your income, and keep you out of default.

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READ  Can We Take Over the Parent Plus Loan from Mom?

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.


  1. Andrew Weber Certified SLC

    August 2, 2016 at 6:34 pm

    Just wanted to add that if Parent Plus loans were originated prior to June 1 2006, it’s a lot more difficult to get them onto ICR after going through Direct Consolidation.

    • Steve Rhode

      August 3, 2016 at 2:00 pm

      Thanks for the comment. Keep participating to help others.

      • Andrew Weber Certified SLC

        August 3, 2016 at 2:32 pm

        Appreciate it Steve! I definitely will. Your site has been an excellent resource for a long time.

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