Being the first in the family to go to college, my parents agreed to a large Parent Plus Loan that my college connected them with, with the expectation that I would someday be so wealthy with my college degree that I could easily be able to help them pay it off…realty has now struck!  The company is called Ed Financial (I believe they are private) and there are no Direct Loans involved with them.  So, my parents are in very serious financial shape and continue to pay a giant payment each month.  Are there any options for them?  Can they get an income-contingent based payment?  Transfer it to DirectLoans, etc?  I’m just trying to make life easier on my family here.  Thanks for any input!

Russell,

I can’t advise you about your particular situation but I can tell you that Parent PLUS loans are federal loans, NOT private.  The Direct PLUS program has three repayment plans-standard, extended, and graduated.  Under certain circumstances, parent borrowers can get deferment or forbearance to temporarily stop payments on the loan.  You’ll find some more here: http://studentaid.ed.gov/PORTALSWebApp/students/english/OtherFormsOfRepay.jsp

Best,
Heather

Thank you very much for this helpful information. I actually find myself in quite a predicament financially due to the cost of my loans. Things have kind of just stacked up over the years, and now I find myself in a situation where I am forced to rely on payday loans to cover my day to day expenses. I am wondering if you think that there might be any leniency on me considering my situation? I know it’s probably not likely, since it seems when it comes to this type of thing, those who need the help the most, are typically the least likely to get it. However, I am pretty desperate, and I am willing to try anything at this point.