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PLSF with Student and Parent Plus

Started by aeroliteflyer, April 20, 2022, 01:54:06 pm

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My current situation is this.
Daughter, is about to graduate in May with degree.  And soon after should be going to work for State of South Carolina working in the probation office.  My understanding is that since this is state government in public service, her student loan should qualify for PSLF.  So she has a small student loan, federal.  We as parents have a much larger, parent plus loan; which I know does not qualify for PSLF.  My questions are below:
1.  I was considering having her refinance all loans under her name in a federal direct to: qualify for IBR, and qualify the entire amount for PSLF.  Is this possible, even if we need to co-sign the federal direct consolidation?
2.  She isn't set to start paying until Dec 2022.  But we haven't elected any repayment option for her yet.  Should this happen before graduation or before repayment begins...or after consolidation if that is possible?
3.  She doesn't actually start with the state until a month or so after graduation.  Current part time job wouldn't qualify for PSLF.  In the current situation, especially trying to do IBR, how does this affect PSLF? 

Thank You,


1. No, she cannot consolidate your Parent PLUS Loan into a consolidation loan in her name. There's a lot confusion surrounding consolidation and refinancing.

Consolidation = free government program, where you combine multiple federal loans in your name to a single loan in your name.

Refinancing = taking out a private loan. This loses all benefits, including PSLF. However, you can consolidate your loan into her name.

2. You would elect a repayment plan about a month before repayment begins. Note, payment pause may also be extended further, so no reason to jump the gun here.

3. You must be on an income-driven repayment plan, such as IBR, to qualify for PSLF. Simply not having qualifying employment doesn't change anything - she just won't get PSLF credits until she starts eligible employment.