Yes, Parent PLUS loans can be put on an income-driven repayment (IDR) plan, but only if you first consolidate them into a Direct Consolidation Loan and enroll before key deadlines, typically before July 1, 2026, to access plans like Income-Based Repayment (IBR) or Income-Contingent Repayment (ICR); otherwise, future options become very limited, with only a Revised Standard Plan available for new loans after that date.
Income-Based Repayment Options for Parent Borrowers
Parent PLUS borrowers who take out new loans on or after July 1, 2026, or who do not consolidate their loans before that date, will not have access to any income-based plans after July 1, 2026.
A parent PLUS loan enables your parents or stepparents to borrow money that can be applied to your educational expenses. PLUS loans are loaned directly from the federal government to the borrower. This loan is not based on your family's income or asset information provided on the FAFSA.
To be eligible for a Direct PLUS Loan for parents, you must be a biological or adoptive parent (or in some cases a stepparent), not have an adverse credit history, and meet the general eligibility requirements for federal student aid (which the child must meet as well).
There is no minimum credit score required for a Parent PLUS Loan. However, borrowers cannot have an adverse credit history as defined by the U.S. Department of Education.
Parent PLUS loan borrowers will be limited to $20,000 a year per student. Parent PLUS loan borrowers' lifetime aggregate limit will be $65,000 per student. Direct student loan offers will be prorated for students who are enrolled less than full time.
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.
Your parent PLUS loan may be discharged if you (not the child) become totally and permanently disabled, die, or (in some cases) file for bankruptcy. Your parent PLUS loan also may be discharged if the student for whom you borrowed dies.
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.
The eligibility for these loans is not tied to the student's credit, and although credit history does matter for Parent PLUS loans, there is no required income threshold.
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 ...
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.
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Currently, the only income-driven plan available to Parent PLUS borrowers is Income-Contingent Repayment — and only if you consolidate your loans first. If you want to access an income-driven plan moving forward, you'll need to consolidate your Parent PLUS loans before July 1, 2026, and enroll in a qualifying IDR plan.
Generally, you'll have from 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Your required monthly payment amount will vary depending on how much you borrowed, the interest rates on your loans, and your repayment plan.
A parent PLUS loan is discharged if the parent dies or if the student on whose behalf a parent obtained the loan dies.
The Parent PLUS Double Consolidation Loophole offers a unique opportunity to merge your Parent PLUS loans into a single consolidation loan and lower your repayment by 50%. The biggest problem is that this loophole is scheduled to expire on July 1, 2025, but it takes 4 to 6 months to complete.
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.