The Department of Education excluded the parent PLUS loan borrowers from the beneficiaries of the latest repayment plan overhaul.
Parent PLUS Loan Borrowers Excluded from Relief
The latest repayment plan overhaul will benefit student loan borrowers, aiming to reduce their monthly payments to half. Meanwhile, the 3.7 million parent PLUS loan borrowers will be excluded from the relief.
CBS News reported that parent PLUS loan borrowers use the assistance to cater to their children’s education needs and fill the gaps they couldn’t afford for their school fees.
However, lower-income families are now taking assistance as their last resort to provide their children with what they need, which is evident in the total loans that amounted to $108.5 billion or over $29,000 loans each borrower.
READ ALSO: $1,044 Relief Checks Will Be Sent To Americans This Week In Colorado
Options For Parent PLUS Loan Borrowers
Despite the current exclusions from some relief programs, there are other options for the parent PLUS loan borrowers that may greatly help them meet their needs, especially their children’s needs: the permanent federal relief programs and the temporary pandemic-tied relief programs.
For the permanent federal relief programs:
For temporary pandemic-tied relief programs:
The exclusion of parent PLUS loan borrowers from the latest repayment plan overhaul may harm them, but with the right programs and solutions, the decision to exclude them will not drive them further into poverty.
READ ALSO: Tick Tock: Biden Faces Decision On Student Loan Payments As Summer Deadline Approaches