Can my loan ever be discharged? Your parent PLUS loan may be discharged if you die, if you (not the student for whom you borrowed) become totally and permanently disabled, or, in rare cases, if you file for bankruptcy. Your parent PLUS loan may also be discharged if the child for whom you borrowed dies.

Do Parent PLUS loans get passed down?

Your parent’s PLUS loan will be discharged if your parent dies or if you (the student on whose behalf your parent obtained the loan) die.

Can private student loans be discharged in Chapter 7?

On July 15, the U.S. Court of Appeals for the Second Circuit ruled that private student loans are not explicitly exempt from a debtor’s Chapter 7 bankruptcy discharge.

Can a PLUS loan be wiped out in bankruptcy?

With a PLUS loan, the parent is the usually the sole obligor on the loan. This means that the student doesn’t owe the debt, only the parent does. Student loans can be wiped out in bankruptcy only if you can demonstrate to the court that to repay them would cause undue hardship to you and your dependents.

Can a parent discharge a PLUS loan in bankruptcy?

With a PLUS loan, the parent is the usually the sole obligor on the loan. This means that the student doesn’t owe the debt, only the parent does. Discharging Student Loans in Bankruptcy. Student loans can be wiped out in bankruptcy only if you can demonstrate to the court that to repay them would cause undue hardship to you and your dependents.

Can a parent take out a PLUS loan?

Many parents take out PLUS loans to help finance their children’s education. (PLUS loans are also available for graduate students to take out on their own.) Parents can take out a PLUS loan for an undergraduate student who is a dependent and who is in school at least half time.

Is there Statute of limitation on Parent PLUS loans?

Like with other federal student loans, there is no statute of limitation on a Parent PLUS loan, meaning there is no set amount of time when a creditor can take legal action to collect and sue a borrower for outstanding debt when he or she fails to make payments.