Parent PLUS Borrowers: Act Soon to Keep Income-Driven Repayment

Starting in the upcoming summer, 3.5 million parent PLUS borrowers are at risk of losing access to income-driven repayment (IDR) and student loan forgiveness if they don’t take action soon.

Borrowers who consolidate before July 1, 2026 can secure lower payments and maintain eligibility for forgiveness programs.

Those who miss the deadline will be forced into the standard repayment plan, which is often more challenging to manage compared to IDR plans.

The standard plan requires fixed monthly payments based on the total debt owed, while IDR plans adjust payments according to the borrower’s income and family size. IDR plans also offer extended repayment terms and potential debt forgiveness.

If you have parent PLUS loans, we will guide you through the necessary steps.

A significant change is that borrowers taking out new parent PLUS loans after July 1, 2026 will no longer have access to income-driven repayment. Their only option will be the standard repayment plan.

Existing parent PLUS borrowers have the opportunity to maintain their IDR eligibility, but the specific plan they qualify for will change. Currently, these borrowers are only eligible for Income-Contingent Repayment (ICR), which is the least generous of the IDR plans. However, ICR is expected to phase out by 2028, making borrowers eligible for Income-Based Repayment (IBR).

You can check your estimated payments for ICR, IBR, and the standard plan using the Education Department’s loan simulator.

Parent PLUS loans will not be eligible for the new government income-driven repayment plan, Repayment Assistance Plan (RAP). More details can be found on the Education Department’s website.

If you have parent PLUS loans, it’s crucial to consolidate your loans before July 2026 and switch to the ICR plan. You must also transition to the Income-Based Repayment (IBR) plan before July 2028.

Missing these important deadlines will result in permanent ineligibility for income-driven repayment and forgiveness.

Log in to your studentaid.gov account to determine if you have parent PLUS loans, whether they are already consolidated, and which repayment plan you are currently on.

If you are already enrolled in the ICR plan, it means you previously consolidated your parent PLUS loans and do not need to repeat the process. Proceed to step 4.

Consolidate your parent PLUS loans on the studentaid.gov website. Consolidation involves replacing one or more federal student loan(s) with a single direct consolidation federal loan. Many borrowers, including parent PLUS borrowers, must consolidate to access income-driven repayment.

To qualify for income-driven repayment, parent PLUS borrowers must complete the consolidation process by June 30, 2026, as per Education Department guidance. The application processing can take up to six weeks, so it’s advisable to submit your application as soon as possible, preferably by mid-May.

Federal student loan consolidation is free, and most applicants complete the online application in under 30 minutes, according to the Education Department. You also have the opportunity to select a new student loan servicer during the application process.

Once your loans are consolidated, they will be replaced with a single direct consolidation loan, with the new loan’s interest rate based on the weighted average of the underlying loans.

Enroll in the Income-Contingent Repayment (ICR) plan before transitioning to Income-Based Repayment (IBR). You can select ICR when completing your consolidation application and immediately start the plan. Alternatively, you can wait to enroll in ICR, but it must be done before the plan closes on July 1, 2028.

Under the ICR plan, your monthly payments are capped at 20% of your discretionary income, with a repayment term of 25 years.

Before transitioning to IBR, you must make at least one full, on-time payment while on the ICR plan.

Once this is completed, submit your application on studentaid.gov/IDR and choose the IBR plan. If you encounter any issues during the application process, reach out to your student loan servicer. Enrollment in IBR must be done before July 1, 2028.

Under the IBR plan, your monthly payments are capped at 10% or 15% of your income, with a repayment term of 20 or 25 years, depending on when you started borrowing. (For pre-2014 Parent PLUS loans, you will qualify for lower payments and a shorter term.)

Summary of Parent PLUS Deadline for IDR Eligibility