Parents who took out student loans to pay for their children’s education could be excluded from affordable repayment plans and loan forgiveness programs in the coming months if they don’t take immediate steps, consumer advocates warn.
“We’re hearing a lot from parents who are worried about losing access to income-based repayment plans,” says Kathleen Boyd, a certified financial planner and founder of Student Loan Savvy in San Diego.
The Parent PLUS federal loan program allows parents to borrow on behalf of their dependent undergraduate students.
With the passage of President Donald Trump’s One Big Beautiful Bill Act last year, Parent PLUS borrowers will no longer be eligible for IDR plans starting in July. IDR plans limit eligible borrowers’ monthly bills as a percentage of their discretionary income, ultimately resulting in student loan forgiveness.
“Our concern is that thousands of Parent PLUS borrowers who would have been eligible for IDR plans or forgiveness after July 2026 will not take the necessary actions and will continue to repay their loans in plans they cannot afford,” said Nancy Nearman, assistant director of New York’s Education Debt Consumer Assistance Program.
Approximately 3.6 million people have Parent PLUS loans, totaling more than $116 billion in debt, according to an analysis by higher education expert Mark Kantrowitz. A typical parent balance is approximately $32,000.
Here’s what parent borrowers need to know to preserve their relief options.
How parent repayment options change
Starting July 1, Parent PLUS borrowers will only have one option to repay their debt. It’s a new standard repayment plan. Under President Trump’s “Big and Beautiful Bill,” the Standard Plan would split a borrower’s debt into fixed payments over one of four periods, depending on the amount borrowed.
In its current form, the plan comes with a 10-year term for all borrowers.
Under the revised plan, only borrowers with balances up to $24,999 would maintain the 10-year repayment term. People who owe between $25,000 and $49,999 will have 15 years to pay it back. Balances between $50,000 and $99,999 are repaid over 20 years. Debts over $100,000 have a repayment period of 25 years.
Borrowers will pay significantly more interest under the new program because the repayment terms are longer.
Parents often risk jeopardizing their own financial futures by borrowing money for their children’s education, Boyd said. The problem can get even worse if you only have one repayment option.
“Standard depreciation costs are very difficult to absorb, especially if you are nearing retirement,” she said.
Consolidate by April to ensure IDR access
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Borrowers can now maintain access to IDR options by consolidating their Parent PLUS loans into so-called direct consolidation loans, Nearman said.
The consolidation process of consolidating federal loans into a new loan typically takes four to six weeks, so Nearman recommends borrowers submit their requests to Studentaid.gov no later than March 31.
If you’ve already consolidated a Parent PLUS loan, you can take advantage of the Direct Consolidation Loan, which gives you more flexibility in repayments, so you’re “not usually in the deadline-pressured group,” Boyd said.
During the consolidated application process, parents must select an income-based repayment plan and make at least one payment under that program, she added.
After that, you should be able to move to an income-based repayment plan, which will likely give you the lowest monthly payments, Nearman said. This is the process that the Department of Education requires based on its interpretation of the new law.
If you are in default on your Parent PLUS loan, requesting consolidation should return you to your current status and preserve your IDR plan and loan forgiveness options, she said.
Current parent borrowers need to plan ahead
Borrowers who are parents of students currently in college should consider this in advance.
If you take out a new Parent PLUS loan after July 1, 2026, you will be stripped of your IDR access and must repay your student loan in the new Standard program. After that date, the integration is useless.
Additionally, starting in July, Parent PLUS borrowers will have an annual loan limit of $20,000 and a lifetime limit of $65,000. Currently, parents can deduct other aid up to the cost of their child’s attendance, with no total limit.
