Parents' guide to student loan forgiveness.

By The Exchange Team

President Biden's declaration last month that he'll forgive up to $20,000 in student debt will also affect parents who took out loans for their children's education.

Parent PLUS loans are federal loans parents can take out to assist their children pay for college.

1. Do You qualify?

Most federal student loan holders will be eligible for some forgiveness, up to $10,000 if they didn't receive a Pell Grant and up to $20,000 if they did.

2. What if You have Parent PLUS and personal loans?

Since the U.S. Department of Education prioritizes high-interest loans, your Parent PLUS debts may be forgiven.

3. Should You apply for forgiveness with your child?

No, parents and children should apply for relief separately. As you both are Eligible.

4. What if I still owe Parent PLUS?

If you still owe after student loan forgiveness, bills will restart in January. When the policy postponing federal student loan payments and interest ends.

Experts suggests refinancing to lower your loan rate.  Consumer activists warn against converting federal student loans to private debt, even though it can save money.