I Took Out A Parent Plus Student Loan, Can I Discharge It In Bankruptcy?

December 1st, 2010 by Reed Allmand

I Took Out A Parent Plus Student Loan, Can I Discharge It In Bankruptcy?

Like most other student loans, a Parent Plus loan is very difficult to discharge in bankruptcy.  However, below are a few other options for handling your Parent Plus student loan:

  1. If you decide to file bankruptcy, do a little planning beforehand. Will a discharge of your other debts make it easier for you to repay your Parent Plus student loan after bankruptcy? If so, while you may not be able to discharge the student loan in bankruptcy, you may still be able to benefit from a discharge of other debts.
  2. Ask the student loan lender about deferment options.  Many student loan lenders have several deferment and forbearance options for people who are unemployed or in the military. However, Parent Plus student loans will accrue interest while in deferment/forbearance.
  3. Ask the student loan lender about income contingent repayment plans which match the repayment amount to the income of the borrower.  Many of these income contingent repayment plans cancel any remaining debt after a certain number of years.
  4. In some rare cases there are student loan cancellation options for parents who took out student loans on behalf of their children.  Don’t be shy about asking lenders about special cancellation programs available for people who are disabled, public servants or who are involved in some other type of program that could qualify them for a partial or full cancellation of their student loan debt.

There are rare situations which may warrant a discharge of a student loan in bankruptcy.  The law says that a student loan may be considered for discharge in bankruptcy if its repayment would create an undue hardship on the borrower. If you think you may qualify for a student loan discharge discuss the matter with your bankruptcy attorney.


About Reed Allmand


Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

View all posts by Reed Allmand


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