Parent PLUS loans are not directly eligible for Public Service Loan Forgiveness (PSLF) because they do not qualify for most Income-Driven Repayment (IDR) plans, which are required to make 120 qualifying payments. To qualify, these loans must be consolidated into a Direct Consolidation Loan and repaid under the Income-Contingent Repayment (ICR) plan.
Parent PLUS Loans are not excluded from PSLF, but they are not eligible for all income-driven repayment plans. Parent PLUS borrowers can consolidate their debt to access the ICR plan and thus, PSLF.
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.
No. Defaulted Direct Loans are not eligible for PSLF, and payments made while the loan was in default cannot count toward the 120 required payments. However, a defaulted loan may become eligible for PSLF if you resolve the default. Learn how to get your loan out of default.
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.
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 ...
Common PSLF mistakes include using ineligible loan types (like FFEL) or repayment plans (like Graduated), not certifying employment annually with correct info (EIN, address), overusing forbearance/deferment, making extra or late payments, consolidating the wrong loans, or assuming enrollment is automatic, all leading to denied forgiveness after 10 years of service and payments. The key is to use only Direct Loans, an Income-Driven Repayment (IDR) plan, submit Employment Certification Forms (ECFs) yearly, and make 120 consistent, on-time payments.
The Trump administration doesn't have the authority to stop PSLF – but it has worked to change the rules. Effective July 1, 2026, the department says it will deny loan forgiveness to workers whose government or nonprofit employers engage in activities with a "substantial illegal purpose."
USED reported the following reasons for TEPSLF application denials: 1) borrower has not been in repayment for 10 years (39%), 2) the borrower does not meet the TEPSLF payment requirements for payments during the last 12 months (21%), 3) and the borrower has no loans eligible to be discharged under the TEPSLF (12%).
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.
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.
Federal Parent PLUS loans are not eligible for the Teacher Loan Forgiveness (TLF) program; however, they may be eligible for forgiveness through the employment-based Public Service Loan Forgiveness (PSLF) program.
To make the transfer of the Parent PLUS loan to a student, the student can apply for student loan refinancing through a private lender. The student then uses the refinance loan to pay off the Parent PLUS loan, and they become responsible for making the monthly payments and paying off the new loan.
In 2021, the Biden Administration added a waiver to the PSLF program, which provides credit for past payments made on loans that would otherwise not qualify for PSLF (for example, a Federal Perkins Loan or Federal Family Education Loans).
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 #1 most common FAFSA mistake is leaving fields blank, followed closely by name/Social Security Number mismatches, but other major errors include incorrect marital/parental info, not reading questions carefully (especially "you" vs. "parent"), and filing late or not at all. You must complete all questions, entering '0' or 'N/A' if applicable, use exact legal names, and ensure accurate SSNs to avoid delays or rejections, with many sources highlighting the importance of filing on time for maximum aid.
Parent PLUS borrowing is no longer “open-ended”
Parents could previously borrow up to the school's full cost of attendance (minus any other aid) with a Parent PLUS loan. Starting July 1, 2026, new loans will be limited to $20,000 per year, with a $65,000 lifetime cap per student.
Borrowers must consolidate their Parent PLUS loan into a Direct Loan and sign up for ICR before applying for PSLF. Under PSLF rules, if you consolidate your Parent PLUS loans, only qualifying payments you make on the new Direct Consolidation Loan can be counted toward the 120 payments required for PSLF.
There is no forgiveness available to Parent PLUS Loan borrowers looking to retire. Remember that Parent PLUS Loan forgiveness is only possible through the Income-Contingent Repayment Plan or PSLF after first consolidating your Parent PLUS Loan into a federal Direct Consolidation Loan.