economy
February 16, 2026
Parents with student loans have a short window to secure affordable repayment and forgiveness
Parents with student debt may be excluded from affordable repayment plans and loan forgiveness in the coming months if they don't take certain steps soon.
TL;DR
- Parent PLUS federal loan borrowers will lose eligibility for Income-Driven Repayment (IDR) plans and loan forgiveness starting July 1, 2026.
- To maintain access to IDR plans, parents must consolidate their Parent PLUS loans into a Direct Consolidation Loan by March 31, 2026, and select the Income-Contingent Repayment plan.
- New Parent PLUS loans taken out on or after July 1, 2026, will not qualify for IDR plans and will be subject to new annual and lifetime borrowing limits ($20,000 annual, $65,000 lifetime).
- The new Standard Repayment Plan, which will be the only option for those who don't consolidate, will have longer repayment terms based on loan balance, potentially increasing total interest paid.
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