What to Do When You Can’t Pay Your Parent PLUS Bill
The Parent PLUS program offers loans to parents of dependent students. Dependent students must be enrolled in an undergraduate program. Graduate students, no matter the age of the student, must apply for Parents PLUS loans as parents are no longer eligible when students graduate with an undergraduate degree. The Parents PLUS program determines eligibility based on credit rating and current status of federal student loans held by parents. A co-signer may be used to qualify, but the co-signer agrees to pay the student loans if the parent does not make payment. Students are not responsible for repaying Parents PLUS loans.
The Parents PLUS program is available to pay college expenses and the total amount borrowed is dependent on other student aid. For instance, if a student receives a $500 Pell Grant and the total cost of attending college is $1,000, parents can borrow $500. The Parents PLUS loan is sent in two payments to the school.
How to Pay the Bill
The Parents PLUS program is controlled by loan servicing companies. Not all loans are serviced by the same company.
Pay online: You can pay your Parents PLUS bill online at http://www.nslds.ed.gov/. Simple search for the loan service company and visit the official website. The online loan payment option should be clearly labeled on the front page of the loan service company website.
Others ways to pay: Depending on the loan service company there may be other options of making Parents PLUS loan payments, including:
- Mail payments
- Phone payments
- Smart phone payments
- Bank payments
Questions About Your Billing Statement or Account?
Have you notices fees, such as higher interest rates and disbursement charges on your Parent Plus Loan billing statement or account that were not present in the past? You may need to review the complete list of applicable fees in the Parent Plus FAQs. As an added resource, you may want to call customer service at 1-800-730-8913.
How the Penalty Fees Work
The fees associated with the Parents PLUS program are higher than student loan fees. Interest rates are also higher though they are fixed for the life of the loan.
- Interest rate: The fixed interest rate on a Parents PLUS loan is 7.9%.
- Disbursement charge: There is a 4% disbursement charge deducted from each loan payment.
I Can’t Make a Payment
If you can’t make your Parents PLUS loan payment you must call your servicing department today. Your loan service company will work with you to defer payment until financial obligations lessen. If you are unable to make payment for longer than the deferment, you may have to reapply. Defaulting on Parents PLUS loans will result in collection, garnishment of wages and seizure of federal and state tax refunds, among other legal action.
Will They Work With Me to Pay My Bill?
Did your Parents PLUS loan service provider work with you to resolve a past due bill? We’d love to hear from you about your experience.