Parents who took out student loans for their child’s education still have time to take steps to preserve their access to affordable repayment plans and debt forgiveness, consumer advocates say. But the window of opportunity is shrinking quickly.
Starting in July, Parent PLUS borrowers will no longer qualify for income-driven repayment plans, due to changes implemented in President Donald Trump’s One Big Beautiful Bill Act. IDR plans cap borrowers’ monthly bills at a share of their discretionary income and culminate in student loan forgiveness.
But if you consolidate your Parent PLUS loans into a so-called Direct Consolidation Loan in April, you can likely maintain your access to IDR options, said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York. Consolidating Parent PLUS loans will leave you with a Direct federal loan — the kind most students carry.
Previously, experts said parent borrowers should start the consolidation process by the end of March in order to meet the July 1 deadline. But, Nierman said, she’s recently seen the U.S. Department of Education complete these requests within six weeks.
“Borrowers should still be able to file applications during the month of April and have their new consolidation loans disbursed prior to July 1, 2026,” Nierman said.
