Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure.

If you're one of the 3.6 million borrowers with Parent PLUS loans, your access to income-driven repayment changed on July 1, 2026. Parent PLUS loans that weren't consolidated into a Direct Consolidation Loan before that date no longer qualify for income-driven repayment or Public Service Loan Forgiveness (PSLF).  

This shift comes from the One Big Beautiful Bill Act (OBBBA), which contains major changes to the federal student loan system. If you're a Parent PLUS borrower who's interested in income-driven repayment or loan forgiveness, here's what the July 1 deadline means moving forward. 

Offered by the Department of Education, a Parent PLUS loan is a federal student loan designed for parents of undergraduate students. Direct Subsidized and Unsubsidized loans, by contrast, are federal loans that students take out themselves to pay for their education. 

Unlike federal loans offered to students, Parent PLUS loans don't qualify for most income-driven plans. Instead, you must consolidate your Parent PLUS loan into a Direct Consolidation Loan first, after which you can apply for one income-driven plan: the Income-Contingent Repayment (ICR) plan. 

Parent PLUS loans don't qualify for any other income-driven options, such as Income-Based Repayment (IBR). However, three fixed-payment plans are available and don't require Parent PLUS loan consolidation: the Standard 10-year plan, the Graduated 10-year plan, and the Extended 25-year plan. 

After June 30, 2026, Parent PLUS loans that haven't been consolidated will no longer be eligible for any income-driven repayment plan. In effect, this also makes Parent PLUS borrowers ineligible for federal loan forgiveness programs, too.

This is due to new OBBBA rules that started on July 1, which also include the creation of a new income-driven plan called the Repayment Assistance Plan (RAP).

Parent PLUS loans aren't eligible for RAP, even if you consolidate them first. But you could still enroll in ICR if: 

You consolidated your Parent PLUS loans by June 30, 2026 

You enroll in ICR and make at least one payment by July 1, 2028 

OBBBA is also eliminating the ICR plan by July 1, 2028, but Parent PLUS borrowers on ICR will have the option of switching to Income-Based Repayment at that time. If you missed the deadline for Parent PLUS loan consolidation, however, you won't have any options for adjusting your monthly payments based on your income. 

Not only is this a major loss if you're struggling to afford payments, but it also prevents you from qualifying for the Public Service Loan Forgiveness (PSLF) program, since PSLF requires 120 payments on an income-driven plan. The ICR plan also offers forgiveness of any remaining balance after 25 years of payments. 

If you didn't consolidate your Parent PLUS loans by June 30, the window to access income-driven repayment and forgiveness is now permanently closed. However, you still have access to three legacy repayment plans:

Standard repayment (10 years): Your monthly payments are calculated so that you pay off the entire loan amount (including interest) before the end of the 10-year repayment period. Your payments are fixed, but must be at least $50.

Graduated repayment (10 years): Your monthly payments start lower, and gradually increase every two years. Payment amounts are set so you will repay the loan and all interest within the 10-year repayment period.

Extended repayment (25 years): Parent borrowers with at least $30,000 in debt can qualify for this plan. Payments can be fixed or graduated, and will ensure the loan is paid off in 25 years. This plan is ideal for high-balance borrowers, but you'll pay more in total interest.

You can use Federal Student Aid's loan repayment calculator to compare plans and see your options.

It's still possible to consolidate Parent PLUS loans after July 1, but doing so can have significant consequences. You could limit your repayment options even more — and those changes could affect all the federal loans you're still repaying.

Consolidating a Parent PLUS loan today would mean:

Parents with new loans disbursed after July 1 are only eligible for the Tiered Standard plan, which gives you between 10 and 25 years to repay your debt, depending on your current balance.

If a parent receives any type of Direct Loan after July 1 — including a new Direct Consolidation Loan — they'll lose access to all income-driven plans and PSLF.

It doesn't matter if you consolidate the loans separately, or you take out a new parent loan for a younger child. Borrowing any new Direct Loan after July 1 means that all of your outstanding loans are subject to the new system. In other words, you'll lose access to any repayment or forgiveness options you've been grandfathered into.

If you're a parent who depends on income-driven repayment or is betting on loan forgiveness in the future, think carefully about borrowing any new federal student loan, as the consequences could be significant.

Student loan borrowers face new repayment rules, borrowing limits, and Parent PLUS deadlines. Here are eight priorities to consider before July 1.

The One Big Beautiful Bill will significantly alter how federal student loans are repaid in the coming years. See what to expect if you're a new or existing borrower.

Consolidating federal loans after July 1 comes with real trade-offs. Here's how missing the deadline affects your repayment plan options.

The GOP law makes sweeping changes to federal student loans. See what existing and new borrowers should expect.

Student loan rules are set to change in 2026. Here's what borrowers need to know about repayment, forgiveness, and federal policy changes.

Changes are coming to federal student loans on July 1. Get your questions answered here.