Parent PLUS Alert

Current Parent PLUS Loan Borrowers

If you have a Parent PLUS Loan, consider consolidating your current Parent PLUS Loan under the Direct Loan Consolidation Program, and then apply for the Income Contingent Repayment Plan. Applying for Direct Loan Consolidation is always free and should take under an hour to complete.  

• Apply for consolidation as soon as possible as processing time can be lengthy. The consolidation process must be completed by June 30, 2026. 
• Work with your federal loan servicer to apply and be approved for an Income Contingent Repayment Plan.
• Mindfully consider borrowing additional Parent PLUS Loans, if needed. Be aware that Parent PLUS Loans borrowed after July 1, 2026 are subject to the new Parent PLUS Loan regulations summarized above. 

Please Note:  

Legacy Provision: If a student or parent borrowed Federal Direct Loans before July 1, 2026, the parent is able to continue borrowing (or begin borrowing Parent PLUS Loans) under the old loan limits for up to three academic years, or until the student finishes their program, whichever comes first. This only applies while the student is enrolled.

Future Parent PLUS Loan Borrowers

If you have not borrowed a Parent PLUS Loan previously, please mindfully consider your borrowing options.

Check your student’s current award offer and: 

• Talk to your school’s financial aid office. 
• Decide if the $20,000 yearly limit and/or the $65,000 total limit will cover your student’s costs for their entire program.

If the new loan limits won’t cover your student’s costs:  

• Consider whether you could qualify as a cosigner for a private student loan. 
• Remember: If you choose to use the Parent PLUS Loan first, you’d be applying for a private loan on top of $65,000 in additional debt, which could affect your debt-to-income ratio and make approval more difficult. 

Make sure you can afford the monthly payment for the total Parent PLUS Loan amount. 
If the payment seems too high or unrealistic, contact your school’s financial aid office to explore other options. If you are not sure, using the Department of Education’s Loan Simulator is a great tool. To use it:  

• Sign in with your FSA ID, or choose “Start From Scratch” and enter your details. 
• You can also watch a tutorial video for step-by-step instructions 

Family size: 4
Number of children in College: 2
Total PLUS Loan for two students: $130,000
Adjusted Gross Income for parent borrower: $60,000

*Note: IBR will not be available for Parent PLUS Borrowers until 2028. Those enrolled in ICR at that time should automatically move to IBR. 

The exact numbers for every family will differ. This example is only an illustration. In some households, the standard repayment plan will be the preferable option. However, consolidating ahead of the deadline does not commit the borrower to staying on an income-driven repayment plan, it merely preserves the option. Borrowers who consolidate can still sign up for the standard repayment plan if they choose to do so. 

Use the Department of Education’s Loan Simulator to estimate monthly payments on the available repayment plans. 

Current Borrowers: Loans created prior to July 1, 2026

• Under certain conditions, Parent PLUS loans may be eligible to have all, or part of the loans forgiven. Find out more about loan forgiveness, cancellation, and discharge.
• To be eligible for Public Service Loan Forgiveness (PSLF), loans must be under an income-driven repayment plan. The income-contingent repayment plan is the only income-driven repayment plan available to parent PLUS loan borrowers and only if the loans are consolidated first.

New Borrowers: Loans created after July 1, 2026

• At the time of publication, there will be no forgiveness options.