Parent PLUS loans are federal loans that are issued to parents of eligible dependent undergraduate students. There’s more information on the requirements 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 for one of the IDR plans (Income-Contingent Repayment). PSLF qualifying employment will be determined by the parent’s employment, not the student’s.
Because a Direct Consolidation loan that includes a Parent PLUS loan is only eligible for one IDR plan, Parent PLUS loans should be consolidated separately from other loan types if a borrower is looking to lower their monthly payment through IDR.