Overview
- President Trump’s One Big Beautiful Bill Act ends income-driven repayment eligibility for Parent PLUS loans starting July 1, 2026.
- After that date, borrowers will be placed in a revised Standard Repayment Plan with fixed terms that range from 10 to 25 years based on balance.
- Roughly 3.6 million parent borrowers owe about $116 billion, with a typical balance near $32,000, according to analyses cited by CNBC.
- Borrowers can retain access to IDR only by consolidating into a Direct Consolidation Loan now, selecting Income-Contingent Repayment, and making at least one ICR payment, a process that typically takes four to six weeks.
- New Parent PLUS loans taken on or after July 1, 2026 will not qualify for IDR even after consolidation, and the program will add $20,000 annual and $65,000 lifetime borrowing caps, changes expected to raise costs and strain older and lower-income families, including many Black and Hispanic households.