Recent rule changes have eliminated loan forgiveness for new federal parent PLUS loans, though loans consolidated prior to July 1, 2026 may be eligible for forgiveness through an income-contingent repayment (ICR) plan or the Public Service Loan Forgiveness (PSLF) program.
What Is the Parent PLUS Loan?
A parent PLUS loan, or Direct PLUS loan, is a form of federal student aid. Once a student reaches federal student loan limits, parent borrowers often take out a PLUS loan. A parent PLUS loan is an unsubsidized federal direct loan. Because they are not subsidized loans, interest accrues while the student is in college.
As of July 1, 2026, Parent PLUS borrowing is capped at $20,000 per year and $65,000 total per dependent student. Before this, parents could borrow up to the full cost of attendance.
So, does Parent PLUS loan forgiveness exist? Yes, but only in limited circumstances.
Options for Parent Loan Forgiveness
If you’re a parent borrower interested in loan forgiveness for your parent PLUS loan, consider these options:
- Income-Driven Repayment options for pre-July 1, 2026 Parent PLUS (via consolidation), including the ICR-to-IBR transition noted below
- Public Service Loan Forgiveness for pre-July 1, 2026 Parent PLUS (with the consolidation strategy)
- Discharge programs
- Refinancing
Let’s now take a deeper look at each of these options.
Income-Contingent Repayment (ICR)
Parent PLUS loans aren’t directly eligible for income-driven repayment. The only way in was to consolidate into a Direct Consolidation Loan and then choose the Income-Contingent Repayment (ICR) plan.
Under ICR, payments are based on 20% of discretionary income (adjusted gross income minus 100% of the poverty guideline). Any balance remaining after 25 years (300 payments) is forgiven. Forgiveness was tax-free for discharges through December 31, 2025. Congress did not extend the exemption, so a balance forgiven under ICR in 2026 or later is taxable as cancellation-of-debt income. Forgiveness under PSLF and Teacher Loan Forgiveness, and discharges for death or total and permanent disability, remain tax-free.
The deadline has now passed for new consolidations. The Direct Consolidation Loan must have been disbursed on or before June 30, 2026; a parent who met that deadline must still enroll in ICR and make a payment before July 1, 2028 to preserve the later transition to Income-Based Repayment (IBR). Taking out any new federal loan on or after July 1, 2026 destroys the grandfathering.
Parent PLUS loans disbursed on or after July 1, 2026 are not eligible for ICR or the new Repayment Assistance Plan (RAP) and must stay on a standard repayment plan.
for Parent PLUS Loans
Parent borrowers may qualify for PSLF after making 120 qualifying payments while working full-time for a public service employer.
- For Parent PLUS disbursed before July 1, 2026: The consolidation had to be completed on or before June 30, 2026. If it was, you must still enter repayment under ICR and make a payment before July 1, 2028. This allows the loan to later transition to IBR, which qualifies for PSLF.
- For Parent PLUS disbursed on or after July 1, 2026: These loans are not eligible for ICR or RAP, payments can only be made using the standard plan. Payments made under the tiered standard repayment plan do not qualify for PSLF, so these payments do not build toward forgiveness. However, a borrower on a 10-year standard schedule would have paid the loan off by the 120th payment, leaving nothing to forgive.
Although payments under the new Repayment Assistance Plan (RAP) will qualify for PSLF, Parent PLUS loans are not eligible for RAP. This means new Parent PLUS borrowers after July 1, 2026 are effectively shut out of PSLF.
Loan Discharge Programs
Parent PLUS loans are also eligible for certain discharges, including:
- Death of the parent or the death of the student on whose behalf the Parent PLUS loan was borrowed
- The parent (but not the student) becomes totally and permanently disabled
- Bankruptcy discharge (rare)
- Closed school discharge
- False certification discharge
- Identity theft discharge
- Unpaid refund discharge
- Defense to repayment
Private parent loans may also be eligible for a death or disability discharge, depending on the lender.
Under the new law, borrower-defense and closed-school discharge standards revert to the stricter 2020 rules for older loans until July 1, 2035, which can make approvals harder than in recent years
Other Repayment Assistance Options
Some employers, federal agencies, military branches, and even states offer student loan repayment assistance that may cover Parent PLUS loans. Eligibility varies by program, and benefits are usually capped, but they can help reduce your balance more quickly. These programs are not full forgiveness, but they may ease repayment for Parent PLUS or private parent loans.
Refinancing a Parent
If you don’t qualify for , you may be able to lower your payments by refinancing the Parent PLUS Loan. However, a can only be refinanced into a . That means if you have a you will lose federal loan protections of forbearance and deferment, and any applicable discharges.
You may also be able to refinance your parent loan in your child’s name. This might make sense if your child is now graduated and working, and you are nearing retirement. However, remember that not every will offer this type of for parents.
Keep in mind that if you refinance a federal Parent PLUS loan into a private loan, you permanently lose federal protections and any remaining PSLF or IBR options that you may still have under the grandfathering rules.
The Bottom Line
Parent PLUS loan forgiveness is still possible for older loans, but the door has largely closed. The consolidation deadline passed on June 30, 2026, so the remaining live deadline is the July 1, 2028 date to enter ICR for parents who consolidated in time. For loans disbursed on or after July 1, 2026, forgiveness through repayment is effectively unavailable. For newer loans, discharges, state or employer programs, and refinancing may provide the best path forward.
Frequently Asked Questions (FAQs)
Are Parent PLUS loans forgiven if the parent dies?
If the parent who takes out the Parent PLUS loans dies, the PLUS loan will be discharged. The loan is also discharged if the student for whom it was taken out dies.
Can Parent PLUS loans be discharged?
A Parent PLUS loan is discharged if the parent or student dies or if the parent who took the loan out becomes totally and permanently disabled. The loan can also be discharged in bankruptcy, though it is rare. Additionally, if you qualify for any forgiveness program, the loan could be discharged.
Do parents have to pay back Parent PLUS loans?
Yes, the parent who takes out the loan is responsible for repaying it. You cannot transfer the loan to a child or even the student who used the money for school. Parents must repay the loan according to the repayment terms agreed upon when the loan was taken out.
How long do you have to pay back Parent PLUS loans?
The term and repayment of your Parent PLUS loan will depend on the repayment plan that you selected. For Parent PLUS loans first disbursed on or after July 1, 2026, the tiered Standard Repayment Plan sets the term by balance — 10, 15, 20 or 25 years — and no other plan is available. Parents with older loans may have more options, including extended repayment or, through consolidation, ICR.
