Parents who took out student loans for their child’s education could be excluded from affordable repayment plans and loan forgiveness programs in the coming months if they don’t take certain steps soon, consumer advocates warn.
“I’m hearing a lot of anxiety from parents about losing access to income-driven repayment plans,” said 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 dependent undergraduate students.
Due to the passage of President Donald Trump’s One Big Beautiful Bill Act last year, Parent PLUS borrowers will no longer qualify for IDR plans starting in July. IDR plans cap eligible borrowers’ monthly bills at a share of their discretionary income and culminate in student loan forgiveness.
“Our concern is that thousands of Parent PLUS borrowers who would otherwise be eligible for IDR plans and forgiveness post-July 2026 will not take the required action and be stuck with paying loans back in a plan they cannot afford,” said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York.
Roughly 3.6 million people hold Parent PLUS loans, and the total debt exceeds $116 billion, according to an analysis by higher education expert Mark Kantrowitz. The typical parent balance is around $32,000.
Here’s what parent borrowers need to know about preserving their relief options.
How parent repayment options are changing
Starting July 1, Parent PLUS borrowers will have only one option to repay their debt: the new Standard Repayment Plan. Under Trump’s “big beautiful bill,” the Standard Plan will spread a borrower’s debt into fixed payments over one of four time frames, depending on what they owe.
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 will retain a 10-year repayment term. Those who owe between $25,000 and $49,999 will repay over 15 years; balances ranging from $50,000 to $99,999 will be repaid over 20 years; and debts of $100,000 or more will have a 25-year repayment term.
Due to longer repayment timelines, borrowers stand to pay significantly more in interest under the new program.
Often, parents risk jeopardizing their own financial futures by borrowing for their children’s education, Boyd said. Having only a single repayment option could worsen the problem.
“A Standard amortizing payment can be very hard to absorb, especially if they’re nearing retirement,” she said.
Consolidate before April to ensure IDR access
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If borrowers consolidate their Parent PLUS loans into a so-called Direct Consolidation Loan now, they can maintain access to IDR options, Nierman said.
The consolidation process, which involves packaging your federal loans into a new one, usually takes between four and six weeks, so Nierman recommends borrowers submit their request at Studentaid.gov no later than March 31.
If you’ve already consolidated your Parent PLUS loans, you now have a Direct Consolidation Loan and therefore more repayment flexibility, “so you are generally not in a group with any deadline pressure,” Boyd said.
During the consolidation application process, parents must select the Income-Contingent Repayment plan and make at least one payment under that program, she added.
After that, you should be able to move into the Income-Based Repayment plan, which will likely result in the lowest monthly payment, Nierman said. This is the process the Department of Education requires from its interpretation of the new law.
If you’re in default on a Parent PLUS loan, requesting a consolidation should bring you back into a current status and preserve your IDR plan and loan forgiveness options, she said.
Current parent borrowers should plan ahead
Parent borrowers with a student currently in college will need to think ahead.
If you take out any new Parent PLUS loans on or after July 1, 2026, you forfeit IDR access and must repay your student debt in the new Standard program. Consolidating will not help you after that date.
Parent PLUS borrowers will also face a new annual loan limit of $20,000 starting in July, with a $65,000 lifetime cap. Currently, parents can borrow up to the cost of attendance for their children, minus any other aid, and there is no aggregate limit.