To lower Parent PLUS loan payments, the most effective method is to consolidate into a Direct Consolidation Loan and enroll in the Income-Contingent Repayment (ICR) plan, which bases payments on income and family size, often resulting in lower amounts, though this requires action before potential rule changes. Other options include refinancing with a private lender (losing federal benefits), deferment/forbearance (temporary relief with added interest), adding auto-debit for a rate reduction, or exploring employer assistance.
Repayment plan options for Parent PLUS loans include Standard, Graduated, Extended, or Income-Contingent. Learn more about ICR and staying on track with income-driven repayment. Consider pros and cons before refinancing, and don't use credit cards or home equity to pay your student loans.
Follow the standard repayment plan
Making payments on the standard, 10-year federal repayment plan will pay off parent PLUS loans the fastest and save you the most money. To become debt-free even quicker, make extra student loan payments toward your principal balance.
If you have low income and can't pay your Parent PLUS Loans, an Income-Contingent Repayment plan (ICR) could provide the relief you need. This income-driven payment plan caps your monthly payment at 20% of your discretionary income or the amount you'd pay under a 12-year fixed plan—whichever is less.
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.
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.
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.
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.
How to Pay Off Parent PLUS Loans Faster: 7 Ways
Parent PLUS loans are educational loans, and the borrower can claim an income tax deduction. When borrowers review their tax deductions, they can deduct up to $2,500 per year in interest paid on the Parent PLUS loan. Income limits and other tax filing rules may apply.
Federal Parent PLUS Loans opens in new tab are loans taken out by parents of dependent undergraduate students, enrolled at least half-time, to help pay for their child's college expenses. Parents are responsible for repaying Parent PLUS loans.
Are student loans forgiven when you retire? No, the federal government doesn't forgive student loans at age 50, 65, or when borrowers retire and start drawing Social Security benefits. So, for example, you'll still owe Parent PLUS Loans, FFEL Loans, and Direct Loans after you retire.
Parent PLUS loan borrowers in default face the full range of draconian government collection powers, including wage garnishment, Social Security offsets and tax refund offsets. There is no time limit on government collection.
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.
Can You Refinance Parent PLUS Loans? Yes. Loan borrowers have the option of refinancing Parent PLUS Loans with a private lender. While you may consolidate Parent PLUS Loans with a Federal Direct Consolidation Loan, refinancing is the only way to lower your interest rate or transfer a Parent PLUS Loan to the student.