Millions of parents with federal student loans are racing against a July 1 deadline to protect access to lower monthly payments and possible debt forgiveness before major federal repayment changes take effect this summer.
The Parent PLUS program allows parents of dependent undergraduate students borrow up to the cost of attendance minus other financial aid, making it a critical backstop for families trying to close college funding gaps.
Borrowers who do not act in time risk losing the most affordable repayment path now available to many families, as the Trump administration moves ahead with changes tied to President Donald Trump’s One Big Beautiful Bill Act.
Under guidance issued after the law’s enactment, the Department of Education said the legislation allows borrowers with a consolidation loan that repaid a Parent PLUS loan to enroll in an income-based repayment (IBR) plan, while broader federal loan changes taking effect in July 2026 will simplify repayment options and create a new repayment assistance plan for new borrowers.
The department later said the negotiated rulemaking process had reached consensus on the package of student loan changes advanced by the law.
For parents already carrying Parent PLUS debt, advocates say the practical window to preserve income-driven repayment access is closing fast because consolidation must be completed before July 1, 2026.
Millions May Lose Student Loan Relief Options This Summer
