Student loan forgiveness programs aren’t just for students. Parent loan forgiveness is also possible, depending on lender qualification requirements and borrower history. Many parents struggling to repay student loan debt can qualify for loan forgiveness.
A federal parent PLUS loan may be eligible for forgiveness through an income-contingent repayment plan or the Public Service Loan Forgiveness (PSLF) program. Parents who take out loans from private lenders also have options.
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.
Starting 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. These caps were added to reduce overborrowing risk.
So, does Parent PLUS loan forgiveness exist? Yes, but only in some circumstances.
Options for Parent Loan Forgiveness
If you’re a parent borrower with a Direct PLUS loan or a private loan and you’re wondering: can parent PLUS loans be forgiven, 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 is 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 is tax-free through December 31, 2025, but may be treated as taxable income starting in 2026 unless Congress extends the exemption.
Deadlines to know:
- If you consolidate before July 1, 2026 and enter repayment under ICR before July 1, 2028, your loan can later transition to the Income-Based Repayment (IBR) plan.
- Parent PLUS loans disbursed on or after July 1, 2026 are not eligible for ICR or 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: You must consolidate into a Direct Consolidation Loan (before July 1, 2026) and enter repayment under ICR (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. They can only use the standard plan. While standard-plan payments technically count toward PSLF, most borrowers will have their loan fully paid off after 120 payments, 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 such as:
- Forbearance and
- Choice of
- Potential
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 IDR options that you may still have under the grandfathering rules.
The Bottom Line
Parent PLUS loan forgiveness is possible, but options narrow after 2026. If you already have loans, acting before the deadlines can preserve PSLF or IDR eligibility. 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. Typically, you’ll have between 10 and 25 years to repay these loans.
