Parent PLUS Loans

ACTION ALERT:

Major changes are coming to the Parent PLUS loan program in July 2026. These changes, which come from President Trump’s “One Big Beautiful Bill Act” will limit how much parents can borrow and will restrict access to flexible repayment plans. Here’s what to know:

What’s Changing?

New Borrowing Limits

Starting on July 1, 2026:

  • Parents can borrow up to $20,000 per year for each child enrolled in college.

  • There is a lifetime limit of $65,000 per child.

Loss of Access to Some Affordable Repayment Plans

Also starting on July 1, 2026

  • Parents who do not consolidate their Parent PLUS loans by this date will no longer be able to use Income-Driven Repayment (IDR) for those loans.

  • Income-Driven Repayment (IDR) allows borrowers to set their monthly payment based on their income, which can lower (or zero out) a borrower’s monthly payment. IDR also offers loan forgiveness after 20-25 in repayment and can help borrowers in public service qualify for Public Service Loan Forgiveness (PSLF) after just 10 years.

  • Parents who take out any new federal loans will also lose access to IDR for their Parent PLUS loan. This will apply to all a borrower’s Parent PLUS loans, including loans borrowed (or consolidated) before July 1, 2026.

Consolidate your Parent PLUS Loans & Apply for IDR Here

The deadline to consolidate your Parent PLUS loans is July 1, 2026. The Department of Education recommends applying for consolidation no later than April 1, 2026 to ensure your application is processed in time.

What Can You Do?

  • You can keep your eligibility for income-driven repayment (IDR) only if you consolidate your Parent PLUS loans by July 1, 2026. You will then need to enroll in IDR and make one full payment before July 1, 2028. The Department of Education recommends applying for consolidation no later than April 1, 2026 to ensure your application is processed in time. The time to consider your options is now.

    While consolidating your loans and applying for IDR can lower your payments, borrowers should carefully review their options. Parent PLUS borrowers should consult the following resources: 

    • You can also contact your loan servicer with questions about consolidation and IDR. If you do not know your loan servicer, you can find their information here. 

    • You can also find information on the National Consumer Law Center (NCLC)’s Student Borrower Assistance Project here. You can review their guidance on Parent PLUS changes here.

  • Know that any Parent PLUS loans you take out after July 1, 2026:

    • Cannot be repaid using IDR, or qualify for loan forgiveness via IDR or Public Service Loan Forgiveness (PSLF)

    • Must be repaid via a fixed, monthly payment that requires you to repay the loan in full over 10 to 25 years.

    Families without access to enough funding through grants, scholarships, and federal student loans to cover the cost of tuition may consider borrowing private student loans, but beware—private loans are usually more expensive and always less flexible than federal loans (including Parent PLUS loans). Make sure that you review and understand the written terms of your private loan, such as interest rate, monthly payments, and total cost of your private loans before you sign for them. You can learn more about private student loans here.

  • You can preserve your eligibility for income-driven repayment (IDR), but you must stop all borrowing by July 1, 2026. You must also consolidate your Parent PLUS loans by July 1, 2026 and make one IDR payment by July 1, 2028. To ensure your application is processed before this legal cutoff, the Department of Education recommends applying no later than April 1, 2026.

    While consolidating your loans and applying for IDR can lower your payments, borrowers should carefully review their options. Borrowers can consult the following resources or reach out to PPSL with questions: 

    • You can also contact your loan servicer with questions about consolidation and IDR. If you do not know your loan servicer, you can find their information here. 

    • You can also find information on the National Consumer Law Center (NCLC)’s Student Borrower Assistance Project here. You can review their guidance on Parent PLUS changes here.

    Families without access to enough funding through grants, scholarships, and federal student loans to cover the cost of tuition may consider borrowing private student loans, but beware—private loans are usually more expensive and less flexible than federal loans (including Parent PLUS loans). Make sure that you review and understand the written terms of your private loan, such as interest rate, monthly payments, and total cost of your private loans before you sign for them. You can learn more about private student loans here.

What are Parent PLUS Loans?

Parent PLUS loans are federal loans issued to parents of undergraduate students. These loans are authorized by the PLUS loan program, which also included loans to graduate and professional students. 

Risky Loans with Few Safeguards

Parent PLUS loans can be a lifeline for many families, but they come with serious risks. The loans carry higher interest rates and fees than undergraduate loans. Parent PLUS loans also have higher borrowing caps than undergraduate student loans, with less flexible repayment options. As a result, many borrowers—including elderly borrowers near or approaching retirement—struggle to repay the loans.