Forgiveness Options for Parent PLUS Student Loan Borrowers

Under the “One Big Beautiful Bill Act” (OBBBA), significant changes were made to the federal student loan program, especially for those with parent PLUS loans. The new rules have eliminated much of the safety net for new parent borrowers. However, if you have older parent PLUS loans, you can still access affordable payments and some forgiveness options, provided you stay on top of the rule changes and required paperwork.

These are the new rules for parent PLUS loans and parent student loan forgiveness options. 

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Can parent PLUS student loans still be forgiven?

Parent PLUS loans can still be forgiven, but recent rule changes have significantly restricted forgiveness options for parents.

For example, the Income-Contingent Repayment (ICR) Plan, which offered forgiveness after 25 years of eligible payments, is no longer an option for parent PLUS loans disbursed on or after July 1, 2026. Additionally, parent PLUS loan borrowers aren’t eligible for the new Repayment Assistance Plan (RAP) with built-in forgiveness or Public Service Loan Forgiveness (PSLF). 

Parent PLUS loan repayment plan and forgiveness overview

How parent PLUS forgiveness has changed

Parent PLUS loans that are eligible for forgiveness options include those that have already been consolidated into a Direct Consolidation Loan. Here’s a closer look at the new rules:

• July 2026 deadline: Parent PLUS loans borrowed or consolidated on or after July 1, 2026, generally no longer have access to income-driven repayment plans or PSLF under the new rules.
• ICR eligibility: Parent borrowers who consolidated into a Direct Consolidation Loan before July 1, 2026, may still have access to ICR through June 30, 2028, and may be moved to or qualify for the Income-Based Repayment (IBR) Plan.
• New loans not eligible for forgiveness: New parent PLUS loans disbursed on or after July 1, 2026, are generally limited to the Tiered Standard Repayment Plan, which doesn’t offer the same forgiveness options as IDR or PSLF.

Notably, if you take out a new parent PLUS loan or consolidate a parent PLUS loan after July 1, 2026, you’ll lose access to all income-driven repayment options for consolidation loans that include parent PLUS loans. Typically, this means losing access to affordable monthly payments and forgiveness options. 

Who may still qualify for parent PLUS loan forgiveness?

If you have parent PLUS loans, you could still qualify for forgiveness in the following situations:

• You’re already enrolled in the ICR Plan: If you consolidated your parent PLUS loan through a Direct Consolidation Loan before July 1, 2026 and signed up for the ICR Plan, you’ll have the opportunity to switch to the IBR Plan until July 1, 2028. After making 20 or 25 years of payments on the IBR Plan, your remaining loan balance may be eligible for forgiveness. 
• You’ve already consolidated and plan on PSLF: If you consolidated into a Direct Consolidation Loan before July 1, 2026, parents with qualifying employment might be eligible for PSLF after 120 qualifying payments. 

How to qualify for PSLF with parent PLUS loans

Parent PLUS loans disbursed after July 1, 2026, won’t be eligible for PSLF. But if you have older loans, you may be able to qualify if:

• You consolidated into a Direct Consolidation Loan before July 1, 2026.
• You’ve signed up for the ICR Plan and made at least 1 payment. 
• You switch to the IBR Plan by July 1, 2028. 
• You have an eligible employment status, like working for a government or tribal agency. 
• You make 120 qualifying payments. 

If you are able to sign up for the appropriate repayment plans, make the qualifying payments, and maintain the right employment status, those with older parent PLUS loans can qualify for PSLF. 

How IDR forgiveness works for eligible parent borrowers

If you’ve consolidated your parent PLUS loans into a Direct Consolidation Loan by the July 1, 2026, deadline, you can generally still sign up for the ICR Plan.

But ICR and PAYE plans are being eliminated by July 1, 2028. With that, you’ll need to switch to the  IBR Plan or Tiered Standard Repayment Plan. If you want to access IBR, you must enroll in the ICR Plan and make at least one payment before the ICR Plan is eliminated in July 2028. 

Once on the IBR Plan, your monthly payments will equal 10% or 15% of your discretionary income for 12 months. You must reapply every year and provide your updated income. After 20 or 25 years of payments, any remaining loan balance will be forgiven. 

Other parent PLUS loan discharge options

Under certain circumstances, parent PLUS loans can be discharged. These include:

• The parent borrower dies.
• The parent borrower becomes totally and permanently disabled.
• The student you borrowed for dies. 
• The student couldn’t complete the program because the school closed.
• The parent’s eligibility to receive the loan was falsely certified by the school.
• The student withdrew from school, but the school didn’t issue any required refunds.

If you think you qualify for any of these discharge options, reach out to your student loan servicer to explore next steps. 

What to do if you missed the July 1, 2026, consolidation deadline

If you missed the July 2026 consolidation deadline, you likely won’t be able to tap into any federal forgiveness options for your parent PLUS loans. But there are still some ways to potentially make managing this debt easier, including:

• Look for consolidation loan dates: Use StudentAid.gov to confirm whether you have a Direct Consolidation Loan that was disbursed before July 1, 2026. It’s possible you’ve already consolidated your parent PLUS loan, which could make you eligible for  forgiveness. 
• Consider your loan options: For some, private student loan refinancing offers more manageable payments and lower interest rates. But it’s critical to explore all available federal repayment plans before jumping into private refinancing.
• Stick to trusted resources: You don’t necessarily need a third-party company to handle your student loan paperwork. If possible, avoid paying third-party companies for federal consolidation, IDR, or PSLF help.
• Seek out alternative forgiveness options: Find out if your state, employer, or professional organization offers any type of repayment assistance program. 

What to consider before refinancing or transferring parent loans

“I recommend weighing what you will gain against what you will lose,” says Leslie Tayne, an award-winning attorney and founder of Tayne Law Group, a New York–based debt relief law firm, specializing in consumer and business debt solutions.

While it might be tempting to refinance your parent PLUS loans for a lower interest rate, you’ll lose federal borrower protections, like deferment and forbearance options, when you switch to a private lender. 

As you navigate repayment, it’s helpful to set clear expectations within the family. 

“Although the student benefited from the education, the loan is technically in the parents' name,” says Tayne. “So, setting expectations about where everyone is at and what is to come is a great place to start.”

“So many families think that they can just ‘transfer’ the loan to their student; that is not the case,” says Jack Wang, host at Smart College Buyer and financial advisor at Innovative Advisory Group who specializes in college financial aid.

If you’re planning to refinance the loans in the student’s name, consider any cosigning obligations. 

“If the parents need to cosign for a private loan, then refinancing a PLUS loan to a private loan didn't really help since the parents are still legally responsible,” says Wang.