Parent PLUS borrowers face June 30 deadline to preserve income-driven repayment access

Parent PLUS borrowers must complete loan consolidation by June 30, 2026, to preserve access to income-driven repayment under changes in the One Big Beautiful Bill Act. Starting July 1, 2026, unconsolidated Parent PLUS loans will no longer qualify for any income-driven repayment plan. The rule affects about 3.6 million borrowers. Parent PLUS loans currently must be consolidated into a Direct Consolidation Loan before borrowers can use the Income-Contingent Repayment plan. The law also creates a new Repayment Assistance Plan, but Parent PLUS loans will not qualify, even after consolidation. The Income-Contingent Repayment plan is set to end by July 1, 2028, though Parent PLUS borrowers already using it may later move to Income-Based Repayment. Borrowers seeking Public Service Loan Forgiveness must make 120 qualifying payments on an income-driven plan. Federal consolidation typically takes four to six weeks, making mid-May 2026 the practical application target.