Parent PLUS loan repayment typically starts 60 days after the loan's final disbursement for the academic year, but parents can request a deferment while the student is in school at least half-time, plus an extra six months after, though interest accrues and can be paid monthly or capitalized (added to the loan). Without a deferment request, payments begin soon after the loan funds are fully sent to the school.
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.
The Parent PLUS loan must have entered repayment on or after July 1, 2006. Payments are 20% of discretionary income (AGI above 100% of the federal poverty guideline). Any remaining balance is forgiven after 25 years of qualifying payments.
New Limits for Parent PLUS Loans
Today, Parent PLUS borrowing can cover up to a school's full cost of attendance (minus other aid such as scholarships and grants). Starting July 1, 2026, new Parent PLUS loans will be limited to: $20,000 per year and. $65,000 total per student.
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.
Credit score: In general, you will need to have good to excellent credit, a FICO score of 680 or higher, to qualify. An excellent credit score paired with a high income will likely give you the fastest path to approval. Income: Lenders may set specific income requirements for you to qualify.
A parent PLUS loan is discharged if the parent dies or if the student on whose behalf a parent obtained the loan dies.
You will lose repayment plan options and restart the clock on PSLF and other forgiveness programs. You can learn more about the consolidation process here . Act quickly to avoid default. Default can result in consequences like garnishment of your wages, federal tax return, or Social Security.
Cap on federal parent borrowing: Parents can borrow up to $20,000 per student and per year, with a max lifetime limit of $65,000—for parent PLUS loans.
For example, if you complete a three-year course that started in September 2023, you will not begin repaying your Plan 5 student loan until April 2027. If your course is one or two years, or you leave your course early, you will not have to start repaying your loan until April 2026.
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.
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.
Federal Reserve data shows that about 23% of Americans have no debt.
Average federal student loan payment
Federal student loans for undergraduates in the 2025-26 school year have a fixed interest rate of 6.39%. Using those numbers with a standard 10-year repayment schedule, you'll find the monthly payment would be roughly $442.
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.
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 ...
While your parent PLUS loans are in default, the government can garnish your wages and take your tax refunds and Social Security checks, among other consequences. Defaulted loans also aren't eligible for different repayment plans, deferment or forbearance.