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. Due to this association, PSLF-qualifying employment will be determined based on the parent’s employment, not the student’s.
Parent PLUS loans are not initially eligible for income-driven repayment (IDR) or Public Service Loan Forgiveness (PSLF), but they can be consolidated into a Direct Consolidation loan to become eligible for PSLF. Parent PLUS loans must be consolidated and have the new Direct Consolidation Loan disbursed by June 30, 2026, to maintain access to the legacy IDR plans, PSLF, or IDR Forgiveness. Federal Student Aid (FSA) recommends submitting a consolidation application by the end of March 2026 to ensure the new Direct Consolidation Loan is disbursed by June 30th. Review our help center article to learn more about loan consolidation and the One Big Beautiful Bill Act (OBBBA) July 1st deadline.
Under the One Big Beautiful Bill Act, Direct Consolidation Loans with underlying Parent PLUS loans must make one payment under the Income-Contingent Repayment (ICR) plan before the loan(s) can be switched to the more affordable Income-Based Repayment (IBR) plan.
As of July 1, 2026, new Parent PLUS loans will not be eligible for IDR plans and must be repaid under the new Tiered Standard repayment plan. The Tiered 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.
If new loans are disbursed on or after July 1, all loans disbursed by June 30, 2026, will only have access to the Tiered Standard plan and the Repayment Assistance Plan (RAP), if eligible.