I’m 69 years old and have fallen behind on my Parent Plus loans for my two older kids. The debt is now over $200,000. I’m worried that if something happens to me, will my heirs be responsible for paying this off?
From what I understand, your heirs won’t have to pay off the Parent Plus loans after you’re gone. It stays with the person who took out the loan.
Atlas said:
From what I understand, your heirs won’t have to pay off the Parent Plus loans after you’re gone. It stays with the person who took out the loan.
That’s a relief to hear! But I keep hearing stuff in the news, and I’m worried that the rules could change. Do you think that’s possible?
@Tyler
It could happen, but it would take a lot of work for the government to change that. I wouldn’t worry too much about it, though. There’s a lot of hurdles to making that a reality.
I’ve dealt with similar issues. The debts don’t get passed on to family members. But if you’re behind on payments, it can affect your credit score for a while.
Jin said:
I’ve dealt with similar issues. The debts don’t get passed on to family members. But if you’re behind on payments, it can affect your credit score for a while.
Yeah, I’ve definitely seen my credit drop due to missed payments. Does it ever get cleared from your credit report?
@Tyler
After about 7 years, the late payments should be removed from your credit report. So, hang tight, it’ll get better.
One thing to keep in mind is that they can garnish your wages if you’re behind. But don’t worry about Social Security—it’s safe from garnishment.
Fintan said:
One thing to keep in mind is that they can garnish your wages if you’re behind. But don’t worry about Social Security—it’s safe from garnishment.
Good to know! I’ve been worried about garnishment. Do they take a specific amount from your paycheck?
@Tyler
Yes, they can take up to 25% of your wages, but Social Security can’t be touched. So you don’t have to worry about that.
It’s good to know that your heirs won’t be liable. But if you’re struggling, I’d recommend looking into state-specific laws, just to be sure about how things work where you live.
Kellen said:
It’s good to know that your heirs won’t be liable. But if you’re struggling, I’d recommend looking into state-specific laws, just to be sure about how things work where you live.
Thanks! I’m in Pennsylvania—do you think the rules are different here?
@Tyler
Not much different, but it’s always better to double-check. Some states have their own rules for debt recovery, so it doesn’t hurt to look into it.
If you’re feeling uncertain, it might help to talk to a financial advisor about your situation. They can guide you through your options and give you peace of mind.
Jules said:
If you’re feeling uncertain, it might help to talk to a financial advisor about your situation. They can guide you through your options and give you peace of mind.
That sounds like a good idea. I’ve been so focused on the PSLF program, I haven’t thought much about other options.