Why Parents May Have Stronger Cases
- Age: Nearing retirement, limited time to repay
- No degree benefit: The parent did not receive the education
- Fixed/declining income: Limited ability to increase earnings
- Multiple loans: PLUS loans for multiple children = unsustainable aggregate burden
Codebtor Stay in Chapter 13
Under 11 U.S.C. section 1301, the codebtor stay protects cosigners on consumer debts during the Chapter 13 plan. For parent PLUS loans, the student is protected from collection while the parent is in Chapter 13. Chapter 7 does not provide a codebtor stay.
IDR Options for PLUS Loans
- ICR: Only IDR plan directly available for PLUS (20% discretionary income, 25-year forgiveness)
- Consolidation: Consolidate PLUS into Direct Consolidation Loan for more IDR options
- PSLF: Available if parent works for qualifying employer
Strategy
- File bankruptcy (Chapter 7 or 13)
- File adversary proceeding
- Complete DOJ attestation
- Emphasize parent-specific factors: age, no degree benefit, fixed income
Last updated: March 2026. Not legal advice.
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