<br><div><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - The Biden administration announces another $9 billion in student debt relief"/><p class="gnt_ar_b_p">Parents who took federal loans to pay for their kid’s college education can use a loophole to cut their monthly repayments, student loan experts say. </p><p class="gnt_ar_b_p">When President Joe Biden announced plans to provide relief to the more than 40 million Americans with federal loans, he <a target="_blank" href="http://www.usatoday.com/story/news/education/2023/12/03/parents-struggle-student-loan-debt/71680559007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">excluded</a> these so-called <a target="_blank" href="http://www.usatoday.com/story/news/education/2023/12/03/parents-struggle-student-loan-debt/71680559007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">Parent PLUS Loans</a> from the most lucrative income-driven repayment (IDR) plans. There are 3.8 million Parent PLUS borrowers, and they're disproportionately Black and Latino. And they're only eligible for the <a target="_blank" href="https://www.usatoday.com/story/money/personalfinance/2021/09/15/college-loans-how-do-repayments-work-parent-plus-loans/8321205002/?gnt-cfr=1" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">Income-Contingent Repayment (ICR) plan</a>, which has higher monthly payments than the other plans.</p><p class="gnt_ar_b_p">The only way parents can access one of the more money-saving IDR plans is through a loophole, but they must act fast. The Department of Education knows the loophole exists and plans to <a target="_blank" href="https://www.govinfo.gov/content/pkg/FR-2023-07-10/pdf/2023-13112.pdf" rel="noopener" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a">close it July 1, 2025</a>. </p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><h2 class="gnt_ar_b_mt">What is the ICR plan? </h2><p class="gnt_ar_b_p">The ICR plan is always available for <a target="_blank" href="http://www.usatoday.com/story/news/education/2019/10/27/parent-plus-loan-hbcu-black-college-student-debt/2482035001/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener">Parent PLUS Loan holders</a>:</p><p class="gnt_ar_b_p"><strong>Learn more:</strong> <a target="_blank" rel="noopener" data-t-l=":body nav (pl)|e|auto spike click:6|${u}" class="gnt_ar_b_a" href="https://www.usatoday.com/money/blueprint/personal-loans/best-personal-loans/">Best personal loans</a></p><p class="gnt_ar_b_p">Payments under the ICR plan are always based on your income and family size. It’s the lesser of: </p><ul class="gnt_ar_b_ul"><li class="gnt_ar_b_ul_li">Twenty percent of your discretionary income. </li><li class="gnt_ar_b_ul_li">Fixed payments over 12 years, adjusted according to your income. </li></ul><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">Note: In some cases, your payment can be higher than the amount you would have to pay under the 10-year Standard Repayment Plan, the Department of Education warns. </p><p class="gnt_ar_b_p">◾ Repayment length: 25 years. </p><p class="gnt_ar_b_p">◾ Parent PLUS loans must be consolidated into a direct loan to be eligible. </p><aside class="gnt_em gnt_em_anc" id="gnt_atomsnc" data-g-r="lazy" data-gl-method="loadAnc" aria-label="Newsletter signup form"/><p class="gnt_ar_b_p"><strong class="gnt_ar_b_al">Buried under student loan debt:</strong><a target="_blank" href="http://www.usatoday.com/story/news/education/2023/12/03/parents-struggle-student-loan-debt/71680559007/" rel="noopener" data-t-l=":b|e|spike click:14|${u}" class="gnt_ar_b_a">Some who took out parent PLUS loans to send...</a></p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/personalfinance/2024/02/29/parent-plus-loan-saving-loophole/72759240007/">Read more <span>➤</span></a> </div>
