No, Parent PLUS loans aren't directly eligible for most Income-Driven Repayment (IDR) plans, but you can make them eligible by consolidating them into a Direct Consolidation Loan before July 1, 2026, and then enrolling in the Income-Contingent Repayment (ICR) plan (or IBR, but it's a two-step process). This consolidation allows access to ICR and potentially other plans like Income-Based Repayment (IBR), but you must act by the deadlines to secure these options, especially with recent legislative changes phasing out some benefits.
Learn more about IDR Plans
Parent PLUS Loans do not qualify for IDR Plans. Borrowers with Parent PLUS loans may consolidate and request ICR. If your consolidation loan was disbursed on or prior to 7/1/2006 and the consolidation loan includes Parent PLUS loans, your consolidation loan may not be eligible for IDR Plans.
*Loans made for parents (Plus or FFEL loans) are never eligible, even if consolidated. ** Parent PLUS loans and FFEL Program loans are only eligible if they are consolidated into a Direct Loan. Note: If an IDR plan doesn't meet your repayment goals, there are other repayment plans available.
Yes, Parent PLUS loans can be forgiven or discharged, but it's more complex than other federal loans, requiring consolidation into a Direct Loan for Income-Driven Repayment (IDR) or Public Service Loan Forgiveness (PSLF) after 10 years, or immediate discharge for death/total disability of the parent or student, plus other limited options like bankruptcy or closed school.
However, Parent PLUS Loans will be capped at $20,000 per student per year and a $65,000 lifetime limit beginning July 1, 2026. Parents who borrowed before that date can continue borrowing under the current limits for up to three additional years or until their student completes their program. Good news.
Defaulting on a Parent PLUS Loan can have serious financial consequences for student loan borrowers. Here's what happens if you haven't made a payment in more than 270 days: Immediate Consequences: Credit Score Impact: Your default will be reported to credit bureaus, which can significantly lower your credit score.
Parent Plus loans are federal loans that allow parents to borrow money to help pay for their child's undergraduate education expenses. In the event that the parent borrower passes away, the government will discharge and forgive the remaining Parent PLUS loan debt.
Available only to Federal Family Education Loan (FFEL) borrowers, this forbearance will postpone payments for Parent PLUS loans while the student for whom they borrowed a PLUS loan is enrolled in school.
No, Income-Based Repayment (IBR) isn't going away entirely but is becoming the only remaining traditional income-driven plan after July 1, 2028, with other plans like SAVE (Saving on a Valuable Education) and PAYE (Pay As You Earn) ending, replaced by a new Repayment Assistance Plan (RAP) for new borrowers after July 1, 2026, so existing borrowers with older loans can stay on IBR if they don't take out new loans or consolidate after that date. It's a major shift, making IBR the primary option for those with pre-July 2026 loans who want to keep an older IDR plan, though new borrowers will use RAP.
By taking action now, you can make your Parent PLUS loans eligible for an Income-Driven Repayment (IDR) plan, which sets payments as a portion of your income each year and offers many people lower payments compared to the Standard Repayment plan.
For loan discharge, the borrower must be disabled and not a family member. Parent PLUS Loans are eligible for total and permanent disability discharge if the parent borrower, not the student for whom you borrowed, is totally and permanently disabled.
Parent PLUS borrowers with existing loans will be able to access whichever of the above Income-Based Repayment (IBR) Plans corresponds with their borrowing date, but only if they consolidate their loans into a Direct Consolidation Loan before July 1, 2026, and then enroll in an income-based repayment plan before July 1 ...
The government doesn't forgive Parent PLUS Loans when you retire or draw Social Security benefits, but it has programs that will wipe out your remaining balance after you've made a number of student loan payments under an income-driven repayment plan.
Undergraduate Limits and Parent PLUS Loans
There are no changes for undergraduate loans, although undergraduate loans will count towards the new lifetime limits. However, starting July 1, 2026, Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student.
If you have parent PLUS loans, it's important to consolidate your loans before July 2026 and switch to the ICR plan. You must also switch into the Income-Based Repayment (IBR) plan before July 2028. If you miss these key deadlines, you'll be permanently blocked from income-driven repayment and forgiveness.
Because parents won't be eligible for ICR or the new RAP, there isn't a path forward for loan forgiveness for Parent PLUS Loan borrowers. The only repayment option for parents who take out new loans on or after July 1, 2026, is the new standard repayment plan.
You can achieve Parent PLUS loan forgiveness by consolidating into a Direct Consolidation Loan, enrolling in an eligible repayment plan (usually ICR), and meeting specific program requirements, such as employment in public service for PSLF, documented total disability, borrower defense eligibility, or other qualifying ...
The "7-year rule" for student loans generally refers to when negative marks, like defaults, are removed from your credit report (around 7 years after the first missed payment or default date for federal loans, 7.5 years for private loans), but the debt itself doesn't disappear and must be paid off; it's also a benchmark in bankruptcy proceedings where federal loans can become dischargeable after 7 years from when payments were due, though proving "undue hardship" is required and difficult.