Parents who borrowed student loans for their children’s education now face a fast-approaching deadline before major changes will affect their repayment. The 2025 congressional spending bill made enormous changes to the student loan system, but little has been said until now about how it will impact borrowers with Parent PLUS loans. Those borrowers now have only until March 31, 2026 to consolidate their loans or they will be forced off of their Income-Driven Repayment Plan and onto a fixed-payment plan.
While all borrowers on IDR plans will have to switch plans eventually since they are being phased out, most won’t have to change until 2028. Parent PLUS borrowers, on the other hand—for whom the ICR plan is the only IDR plan available—have to switch very soon, or they will be ineligible for any of the remaining income-based plans. They will need to consolidate their Parent PLUS loans into a Direct Consolidation Loan, request an IDR plan, and make at least one payment before July 1, 2026 on that loan in order to keep their payment plan.
In order to stay on an IDR plan, Parent PLUS borrowers will need to apply for a Direct Consolidation Loan before April 1, 2026. They will need to login to their Federal Student Aid account at studentaid.gov (not their student loan servicer’s website) and fill out a consolidation application. When you do so, you’ll be prompted to choose a payment plan. You’ll want to select “Repay Based on My Income—Income-Driven Repayment (IDR) Plans.” The only IDR plan available for Direct Consolidation Loans that were Parent PLUS loans is the Income-Contingent Repayment plan. Their other option is a fixed-payment plan. Once you’ve selected “Repay Based on My Income…,” you’ll be prompted to link to the IRS so they can pull your most recent tax return and calculate your monthly payment. Once your application is complete, it will be sent for processing. It’s important that you make at least one payment on your new Direct Consolidation Loan before July 1, 2026 in order to keep the ICR plan.
If you have any questions about consolidating, or are just nervous about doing it yourself, we’re here for you! We’re always here to help guide you through the process, keep up to date, and gain confidence that you’re on-track with your student loans.
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