Parents who took out student loans for their child’s education could be excluded from affordable repayment plans and loan forgiveness programs in the coming months if they don’t take certain steps soon, consumer advocates warn.
“I’m hearing a lot of anxiety from parents about losing access to income-driven repayment plans,” said Kathleen Boyd, a certified financial planner and founder of Student Loan Savvy in San Diego.
The Parent PLUS federal loan program allows parents to borrow on behalf of dependent undergraduate students.
Due to the passage of President Donald Trump’s One Big Beautiful Bill Act last year, Parent PLUS borrowers will no longer qualify for IDR plans starting in July. IDR plans cap eligible borrowers’ monthly bills at a share of their discretionary income and culminate in student loan forgiveness.
“Our concern is that thousands of Parent PLUS borrowers who would otherwise be eligible for IDR plans and forgiveness post-July 2026 will not take the required action and be stuck with paying loans back in a plan they cannot afford,” said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York.
