Parent PLUS Borrowers Must Act by April 1 to Keep Income-Driven Repayment Access, Loan Forgiveness Eligibility
FOR IMMEDIATE RELEASE
Contact: Allie Arcese
Sr. Director, Strategic Communications
[email protected]
WASHINGTON, D.C., MARCH 30, 2026 — Major changes to federal student loan repayment are on the horizon, and parent borrowers need to act quickly to avoid potentially higher monthly payments and the loss of loan forgiveness options.
Under forthcoming changes tied to the One Big Beautiful Bill Act, parent borrowers who take out a new Parent PLUS loan on or after July 1, 2026, will lose access to income-driven repayment (IDR) plans — and with it, eligibility for Public Service Loan Forgiveness (PSLF).
Beginning July 1, 2026, these borrowers will instead be placed on a Tiered Standard Repayment Plan, which may come with substantially higher monthly payments than under IDR plans and is not eligible for PSLF. Borrowers currently working toward PSLF will lose all progress if they take out a new Parent PLUS loan after this date.
“Time is running out for parent borrowers to protect their options,” said Melanie Storey, president and CEO of the National Association of Student Financial Aid Administrators (NASFAA). “Not only do income-driven repayment plans often provide more manageable payments for borrowers, but they’re also the only pathway for Parent PLUS borrowers to qualify for PSLF. Without access to these repayment plans, parent borrowers lose access to both lower monthly payments and potential loan forgiveness.”
Parent borrowers who are not currently enrolled in an income-driven repayment plan have a limited window to act. To preserve access to IDR and potential PSLF eligibility, parent borrowers who already have PLUS loans must consolidate their loans into a Direct Consolidation Loan and enroll in the Income-Contingent Repayment plan. Because this process can take up to three months and must be fully completed by July 1, 2026, borrowers are strongly advised to apply for consolidation no later than April 1, 2026.
Parent borrowers who are already enrolled in an income-driven repayment plan and decide to take out a new PLUS loan on or after July 1, 2026, should be aware that all of their loans, both new and existing, will be placed into the Tiered Standard Repayment Plan.
Those who need to borrow for the upcoming academic year should contact their financial aid office as soon as possible to understand their options.
NASFAA policy experts are available to speak to members of the media about student loan changes under the One Big Beautiful Bill Act. To set up an interview, please email [email protected].
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About NASFAA
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.
Publication Date: 4/1/2026
