Can Parent Plus loans be passed to my heirs if I pass away?

Education Law Forum
1

I’m a 69-year-old guy who’s fallen behind on my Parent Plus loans for my two older kids. The total debt is over $200k now. I’m worried about what happens to this debt if I pass away before I can pay it off. Will my heirs have to deal with it?

2

Hey, I was in a similar situation a while back. From what I know, the debt doesn’t pass to your heirs. They won’t be responsible for it once you’re gone.

3

Amari said:
Hey, I was in a similar situation a while back. From what I know, the debt doesn’t pass to your heirs. They won’t be responsible for it once you’re gone.

That’s good to know! I was really concerned about that, especially with how things are in the news sometimes. Does this change if the government passes a new law?

4

@LawyerLounge
I don’t think so, unless there’s a major shift in government policies. But it seems unlikely for something like that to happen soon. Laws like that usually take a lot of time to change, and it would need major support.

5

Yeah, it’s pretty straightforward—your heirs won’t be held liable for the loans. As for your credit, you might want to keep an eye on that though. Any missed payments could stay on your report for a bit.

6

@Mai
Oh yeah, my credit’s already been hit by the late payments. Do you know if they’ll ever drop off?

7

LawyerLounge said:
@Mai
Oh yeah, my credit’s already been hit by the late payments. Do you know if they’ll ever drop off?

Yep, after 7 years, the negative marks should fall off your report. So, hang tight!

8

Honestly, my biggest concern was garnishment. If you’re struggling to make payments, that’s something to watch out for. But Social Security is protected, so that’s one less thing to worry about.

9

Marin said:
Honestly, my biggest concern was garnishment. If you’re struggling to make payments, that’s something to watch out for. But Social Security is protected, so that’s one less thing to worry about.

Good to know! I’m trying to avoid garnishment. Do they take a percentage of wages or something?

10

@LawyerLounge
Yeah, they can take up to 25% of your wages. But like I said, your Social Security is safe. So don’t stress about that part!

11

I’m not sure about the specific laws where you are, but in some states they can go after wages if you don’t keep up with payments. Might be a good idea to look into any state-specific rules just in case.

12

@Ashwin
That’s a good idea! I’m in Pennsylvania. Do you think it could be different here?

13

LawyerLounge said:
@Ashwin
That’s a good idea! I’m in Pennsylvania. Do you think it could be different here?

Not really, but it’s worth checking to be sure. Some states have their own rules for debt recovery, so better safe than sorry.

14

I know this situation can be overwhelming. If you ever want to talk to someone about the options you have, reaching out to a financial advisor could help clarify things a lot more.

15

Lennon said:
I know this situation can be overwhelming. If you ever want to talk to someone about the options you have, reaching out to a financial advisor could help clarify things a lot more.

Thanks, I’ll definitely look into that. I’ve been so focused on the PSLF program, I didn’t think much about other options.