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I have about $170k in Parent Plus loans. Most are FFEL Plus, a couple of Direct Plus and a FFEL consolidated. The loans are all in my name. However, my wife is a school teacher.

Could we:
1. do a Federal Direct Consolidation Loan with the loan being in her name,
2. pay under ICR for 120 payments while she remains a teacher or in another qualifying public service job
3. have the remaining balance forgiven, tax free?

I’m concerned about the loans being in my name but being transferred to her name maybe causing a problem, but then they will ask for our joint return each year, it appears.

No. Student loans are NOT transferable to another person.

You can still consolidate and do the ICR....they will check your combined income thru the IRS yearly.

Sub: #1 posted on Tue, 11/22/2011 - 14:12

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So, since the loans are in my name PSLF based upon her work is not possible despite the fact that both our incomes are used to calculate the payments, my wife is a school teacher and the majority of the salary in our household is probably going to be hers?

Sub: #2 posted on Tue, 11/22/2011 - 20:52

nick1 nick1

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You are the borrower and loan forgiveness is based on YOUR occupation. If you are not employed in public service, you cant qualify for public service loan forgiveness...pretty simple. ICR payment plan is simply based on household size and income. Your situation is really no different than a wife that stays home to raise the kids while the husband is the breadwinner. The wife's loan payments are still based on household income.

Sub: #3 posted on Tue, 11/22/2011 - 21:51

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I'm in the same situation I have 150k and have no way out so I made a petition to get student loans disbursed in bankruptcy. Feel free to sign it to help me get it to the president. personal,or solictory info...PM

Sub: #4 posted on Mon, 11/19/2012 - 10:10


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