Parent PLUS loans are federal loans that are issued to parents of eligible dependent undergraduate students. There’s more information on the requirements and limitations at Federal Student Aid.
These loans will be in the name of the parent, not in the name of the student. The parent is responsible for paying the loan, and late payment or default will reflect on the parent’s credit history.
Parent PLUS loans are not eligible for income-driven repayment (IDR) or Public Service Loan Forgiveness (PSLF). However, they can be consolidated into a Direct Consolidation loan to become eligible for PSLF. Recent changes have been made so that Direct Consolidation Loans with underlying Parent PLUS loans must make one payment under the Income-Contingent Repayment (ICR) plan, and then the loan(s) can be switched to the more affordable Income-Based Repayment (IBR) plan. Borrowers with Parent PLUS loans must consolidate these loans and have the new Direct Consolidation Loan disbursed by June 30, 2026, to maintain access to the current IDR plans, PSLF, or IDR Forgiveness. PSLF-qualifying employment will be determined by the parent’s employment, not the student’s.
Beginning July 1, 2026, new Parent PLUS loans will not be eligible for IDR plans and must be repaid under the new Standard repayment plan. The new Standard plan will be made up of equal monthly payments over a ten to twenty-five-year timeline, depending on the borrower’s original balance.