Starting in summer 2026, Parent PLUS borrowers face big changes under the new student loan law. If you don’t act, you could lose your ability to enroll in income‑driven repayment (IDR) plans — and with them, chances at forgiveness.
Here’s what’s changing, what the deadlines are, and step‑by‑step actions to protect yourself.
What’s Changing for Parent PLUS Borrowers
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New Parent PLUS loans disbursed on or after July 1, 2026 will no longer be eligible for any income‑driven repayment (IDR) plans. The only option for those loans will be the standard repayment plan. NerdWallet+2The Student Loan Sherpa+2
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Existing Parent PLUS borrowers can preserve IDR eligibility — but only if they meet specific deadlines and take the required steps. MyResolvent+3The Student Loan Sherpa+3NerdWallet+3
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The Income‑Contingent Repayment (ICR) plan — currently the only eligible IDR plan for Parent PLUS after consolidation — will be phased out along with other older IDR plans (like SAVE and PAYE). Borrowers who qualify must transition to Income‑Based Repayment (IBR). NerdWallet+2The Student Loan Sherpa+2
Additionally:
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Borrowing limits change. After July 1, 2026, new Parent PLUS annual borrowing per student will be capped at $20,000/year. Total (lifetime) borrowing for each student will be capped at $65,000. NerdWallet+1
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The law eliminates old eligibility requirements like “partial financial hardship” for IBR, so more borrowers may qualify. The Student Loan Sherpa+2NerdWallet+2
Who Is Affected?
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If you take out or consolidate a Parent PLUS loan on or after July 1, 2026, all your Parent PLUS / consolidation loans (even older ones) will be ineligible for any IDR or newer repayment assistance. You’ll be stuck with the standard plan. NerdWallet+2The Student Loan Sherpa+2
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If you already have Parent PLUS loans, you can preserve your IDR and forgiveness options — but only if you consolidate before June 30, 2026 and enroll in ICR (or another allowed IDR) by June 30, 2028. MyResolvent+3The Student Loan Sherpa+3Student Loan Borrowers Assistance+3
What Are the Deadlines?
| Deadline | What You Must Do |
|---|---|
| June 30, 2026 | Consolidate any existing Parent PLUS loans into a Direct Consolidation Loan to become eligible for ICR and to preserve the option to later move to IBR. The Student Loan Sherpa+1 |
| July 1, 2026 | All Parent PLUS loans disbursed or consolidated after this date are ineligible for IDR or forms of forgiveness. NerdWallet+2The Student Loan Sherpa+2 |
| By June 30, 2028 | Enroll in ICR (if consolidated) and make required payments; then move into IBR plan before this date. NCLC Digital Library+2The Student Loan Sherpa+2 |
What to Do Right Now
To preserve your IDR eligibility and access to forgiveness if you have Parent PLUS loans:
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Check your status
Log into StudentAid.gov and confirm whether you have Parent PLUS loans, whether they’re already consolidated, and which repayment plan you’re on. -
Consolidate your Parent PLUS loans ASAP
If they aren’t consolidated, consolidate them before June 30, 2026 into a Direct Consolidation Loan. This step is necessary to get into ICR, which then lets you later switch to IBR. The Student Loan Sherpa+2NCLC Digital Library+2 -
Enroll in ICR
Once consolidated, enroll in ICR. If you do this, you will preserve access and later be able to move to IBR. Choose ICR when you consolidate — or afterward — but before the deadline. Student Loan Borrowers Assistance+2NerdWallet+2 -
Switch to IBR by June 30, 2028
After making at least one full payment under ICR, apply to switch to the IBR plan before July 1, 2028. This gives you better payment terms (lower percent of income, possibly shorter or more favorable repayment timeline). The Student Loan Sherpa+1 -
Avoid taking out new Parent PLUS loans or consolidating after July 1, 2026 unless you accept that those loans will lose IDR eligibility. Any new or consolidated loans after that date will be subject to the stricter rules. NerdWallet+1
Why These Changes Matter
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Standard repayment plans have fixed monthly payments based on the total loan amount — often much higher than income‑based plans for borrowers with lower or variable income.
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Income‑Driven Repayment plans (like IBR and ICR) link payments to your income and family size, possibly lengthening the repayment period, and can offer forgiveness after many years. If you lose access to IDR, you lose those protections.
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Public Service Loan Forgiveness (PSLF) often requires that loans be in an eligible repayment plan (i.e., an IDR). Losing IDR eligibility means losing access to PSLF for many borrowers. Mass.gov+1
Final Thoughts from Creditvana
If you have Parent PLUS loans, this is a critical moment. Failing to act before the deadlines could mean permanently losing access to meaningful repayment relief. Consolidate, enroll in ICR, and prepare to switch to IBR by mid‑2028 if you want to keep your options open.
At Creditvana, we recommend:
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Running your current loan repayment options through the official StudentAid.gov loan simulator
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Keeping proof of all applications and payments
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Seeking free advice if needed — from your loan servicer, a financial aid office, or trusted nonprofit experts
Want help showing how these changes will affect your monthly payment or forgiveness timeline? I can put together a breakdown for your specific situation.
