Parent PLUS Loans are a type of federal student loan that a parent can take out to help pay for their child’s college education. Parent PLUS Loans have fewer repayment options than other federal student loans. The rules changed on July 1, 2026, so it is important to understand what options you have before consolidating or taking out any new loans.
💡Tip: Many parents think they just co-signed on a student’s loan, when they actually took out a Parent PLUS Loan that they are responsible for. If you helped your child with loans, check if you co-signed a private loan or took out a federal Parent PLUS Loan.
- What can Parent PLUS Loans be used for?
- Are there any limits on how much I can take out in Parent PLUS Loans?
- Who is responsible for repaying a Parent PLUS Loan?
- When do I need to start repaying my Parent PLUS Loans?
- What repayment plans am I eligible for?
- How do I choose a plan?
- Can I pay my Parent PLUS Loans on an Income-Driven Repayment (IDR) plan?
- What if I can’t afford any of my payment options?
3. Before you take out or consolidate loans now: STOP and check your options
- Why do I need to be careful now?
- What if I need to take out new Parent PLUS Loans for my child who is still in school?
- What if I need to consolidate my loans?
4. Are Parent PLUS Loans eligible for any cancellation or discharge programs?
5. Parent PLUS Loans: Quick Action Checklist
1. Parent PLUS Loan Basics
What can Parent PLUS Loans be used for?
Just like with other types of federal student loans, the money from your Parent PLUS Loan is applied directly to your child’s account with their school to pay for tuition, room and board, and other fees. If there is any amount leftover after these expenses are paid, the school should give the rest of the funds to you to use for your child’s additional education expenses. If you want, you can also ask the school to send the extra funds directly to your child.
Are there any limits on how much I can take out in Parent PLUS Loans?
Yes. Under the new rules, a student can only benefit from up to $20,000 of Parent PLUS Loans per year, with a lifetime limit of up to $65,000. This means that the combined Parent PLUS Loans taken out by all parents cannot exceed that annual or lifetime limit per child. Additionally, you can’t take out more than the cost of attendance minus the amount of other financial aid the child receives. However, there is no limit on how many children a parent can borrow for.
Some parents who had a child enrolled in college before July 1, 2026 may be grandfathered into the old rules and may be able to take out more in Parent PLUS Loans per child if their child is still in the process of completing that program.
2. Repaying Parent PLUS Loans
Who is responsible for repaying a Parent PLUS Loan?
The parent is the borrower on a Parent PLUS Loan and is legally responsible for repaying the loan, not the student. If you took out a Parent PLUS loan, you can’t force your child to pay it, and you can’t transfer the loan to them. Some students do help repay their parents’ PLUS Loans, but the parent always remains legally responsible for it.
When do I need to start repaying my Parent PLUS Loans?
In most cases, you have to begin repaying the Parent PLUS loan as soon as it is paid to the school. After the school receives the funds, you should get a notice from your loan servicer about repayment options.
You make payments directly to your loan servicer. You can set up an online account with your loan servicer to make payments and manage your loans.
However, if you would like, you can request an in-school deferment so that you do not need to make payments on the Parent PLUS Loan while your child is enrolled in school at least half-time. The deferment will continue an additional six months after they leave school or drop below half-time enrollment. While the deferment is in place, you will not be required to make payments, but your loan will accrue interest, which means you will pay more over time.
What repayment plans am I eligible for?
It all depends on when you took out your loans and whether you consolidated your Parent PLUS Loans before July 1, 2026:
- If you took out all of your federal student loans before July 1, 2026 and did not consolidate your Parent PLUS Loans before that date, then your Parent PLUS Loans are eligible for the Standard, Graduated, and potentially Extended repayment plans.
- If you consolidated your Parent PLUS Loans before July 1, 2026 and did not take out or consolidate any loans after that date, then the consolidation loan is eligible for the Standard, Graduated, and potentially Extended plans and may also be eligible for some Income-Driven Repayment plans (discussed below).
- If you took out or consolidated any federal student loans after July 1, 2026, your Parent PLUS Loans and any consolidation loans containing a Parent PLUS Loan are only eligible for the Tiered Standard plan.
Note that if you also have loans from your own education, those loans may be eligible for more repayment plans than your Parent PLUS Loans are eligible for, and you may repay your Parent PLUS Loans on a different repayment plan from your other loans.
How do I choose a plan?
If you don’t choose a plan, you’ll be automatically enrolled in either the Standard or Tiered Standard plan depending on whether or not you have any loans issued after July 1, 2026. These plans are fixed plans that are designed to pay off your loans within a certain number of years.
But if you are eligible for another plan, then you can request to switch. For more information on your repayment options, see our page on payment plans. You can also use the Department of Education’s Repayment Calculator to help you see what plans you’re eligible for and how much your payments would potentially be in each plan.
Can I pay my Parent PLUS Loans on an Income-Driven Repayment (IDR) plan?
Maybe—but only in limited circumstances, and the rules just got harder.
If you consolidated your Parent PLUS Loans into a Direct Consolidation Loan BEFORE July 1, 2026: You may still be eligible for IDR, but you need to sign up for and make at least one payment in the Income-Contingent Repayment (ICR) plan before July 1, 2028, in order to still be able to pay on IDR going forward. After you make at least one payment in ICR, you can switch to the Income-Based Repayment (IBR) plan if you want. IBR is sometimes less expensive than the ICR plan.
ICR will be eliminated by July 1, 2028. If you are still on ICR at that time, your consolidated Parent PLUS Loans should be automatically switched to the IBR plan. Your consolidated Parent PLUS Loans can stay on the IBR plan as long as you don’t consolidate or take out any new loans after July 1, 2026.
If you did NOT consolidate your Parent PLUS Loans before July 1, 2026: You cannot enroll your Parent PLUS loans in an IDR plan, even if you consolidate them now.
If you took out Parent PLUS Loans on or after July 1, 2026: You cannot enroll your Parent PLUS Loans in an IDR plan, even if you consolidate them.
If you take out or consolidate any federal student loans after July 1, 2026: This will affect your current loan options. Even if you consolidated your Parent PLUS loans before the deadline, taking out a new loan after July 1, 2026, means your consolidated Parent PLUS Loan will no longer qualify for an Income-Driven Repayment (IDR) plan. Instead, you will only be eligible for the Tiered Standard plan.
Note: Parent PLUS Loans and consolidation loans containing Parent PLUS loans are not eligible for the new Repayment Assistance Plan (RAP).
What if I can’t afford any of my payment options?
Contact your loan servicer—ideally before missing payments. Depending on your circumstances, you may be able to request a deferment or forbearance, which temporarily pauses your payments. Deferments and forbearances can prevent your loan from being reported as past due or from defaulting when you can’t make payments. But they should only be used as a temporary solution. Interest may continue to grow during a deferment or forbearance, which could cause your loan balance to increase and become more difficult to pay off over time. Time in deferment or forbearance also does not typically count toward PSLF or IDR loan cancellation.
3. Before you take out or consolidate loans now: STOP and check your options
Why do I need to be careful now?
If you consolidated your Parent PLUS Loans before July 1, 2026, stop before taking out any new loans or consolidating any existing loans and consider the impact and whether you’ll be able to afford your payments. If you take out or consolidate any loans after July 1, 2026, your Parent PLUS Loans and consolidation loans that contain Parent PLUS Loans will only be eligible for the Tiered Standard plan. The Tiered Standard plan often has higher monthly payments than what you’d pay in ICR or IBR, and it doesn’t qualify for Public Service Loan Forgiveness or IDR loan cancellation.
What if I need to take out new Parent PLUS Loans for my child who is still in school?
If you want to preserve access to IDR on the Parent PLUS Loans you consolidated before July 1, 2026, then you should not take out any new loans. Consider speaking with the financial aid office at your child’s school to see if there are other things you can do to help your child pay for school. Is your child eligible for any other financial aid or scholarships? If you do take out new loans now, you will have to pay any Parent PLUS Loans, even those you previously consolidated, on the Tiered Standard Plan. You might also consider whether another parent can take out the Parent PLUS Loan, since that won’t impact your repayment options (although that parent should carefully consider whether they can afford to pay the Parent PLUS Loan back on the new Tiered Standard plan).
If you did not consolidate your Parent PLUS loans before July 1, 2026, stop before consolidating or taking our new loans and consider the following questions:
- Do I have outstanding loans from my own education? If you do, consolidating your loans could change your repayment options on those loans in ways that may result in more expensive monthly payments. Be especially careful about consolidating loans for your own education together with Parent PLUS Loans – if you do this after July 1, 2026, then the new consolidation loan will only be eligible for the Tiered Standard Plan, and you’ll lose the option to use an IDR plan to repay the loans for your own education.
- How long will I have to repay my loans? If you are currently in the Standard Plan, you typically have 10 years to repay. If you owe more than $30,000, you might be eligible for the Extended Plan. But if you consolidate your Parent PLUS Loan now, you can’t use the Standard or Extended Plan anymore. Instead, your new consolidation loan will only be eligible for the Tiered Standard Plan. Compare what your payments would be under the Standard, Extended, and Tiered Standard Plans before deciding to consolidate.
What if I need to consolidate my loans?
Generally, you want to avoid consolidating loans without thoroughly considering your options, especially if you have loans from your own education that are eligible for IDR plans. However, there are still a few specific circumstances where it may be a good option. See our page about consolidating loans for more information.
If you do need to consolidate your loans and you have Parent PLUS Loans, it’s generally a bad idea to combine Parent PLUS Loans with other loans for your own education. Combining your Parent PLUS loans with loans for your own education after July 1, 2026 will make the new consolidated loan ineligible for any IDR plan. You will only be able to pay that new consolidated loan in the Tiered Standard Plan. But you can consolidate loans separately (and you can even consolidate just one loan!). Before consolidating, get advice and make sure you understand what you could lose.
4. Are Parent PLUS Loans eligible for any cancellation or discharge programs?
Yes. For more information, see our page on cancellation and forgiveness options. Parent PLUS borrowers may qualify for a number of federal cancellation, discharge, and forgiveness programs, including:
Total & Permanent Disability (TPD) Discharge
Your loans may be discharged if you become unable to work due to physical or mental impairment and meet the program requirements.
Closed School Discharge
You may be eligible to have your Parent PLUS Loans discharged if your child’s school closed while they were enrolled or shortly after they withdrew and they could not complete their program.
False Certification / Identity Theft
You may be eligible to have your Parent PLUS Loans discharged if a school improperly certified the loan or if you were a victim of identity theft and didn’t take out or benefit from the loan.
Public Service Loan Forgiveness (PSLF)
If you work full-time for a qualifying government or nonprofit employer and meet the other requirements, you may qualify for forgiveness after 120 qualifying payments on an eligible repayment plan. You have to be on either the 10-year Standard plan or an IDR plan in order to qualify for PSLF, so not all Parent PLUS Loans will be eligible for PSLF.
Borrower Defense to Repayment
You may be eligible to have your Parent PLUS Loans discharged if your child’s school misled them or engaged in certain misconduct.
Death Discharge
A Parent PLUS loan is discharged if the parent borrower or the child for whom the loan was taken out dies.
5. Parent PLUS Loans: Quick Action Checklist
Check when your Parent PLUS loans were borrowed and whether they were consolidated before July 1, 2026. What repayment options are you eligible for?
If you consolidated before July 1, 2026 and want to make payments based on your income, then you must enroll in ICR and make an ICR payment before July 1, 2028. This will allow you to keep paying your Parent PLUS Loans on an IDR plan in the future.
If you cannot afford any payment options, contact your servicer before you fall behind.
Before consolidating or taking out another federal loan, find out how it could affect repayment options for your existing loans. Be especially careful if you also have loans from your own education: If you ever need to consolidate, do not consolidate these together with your Parent PLUS Loans unless you have confirmed the consequences of this consolidation and it makes sense for you.
Check whether you may qualify for a discharge or forgiveness program.
