With higher education costs, parents are increasingly taking on student loans to help their children with the cost of college. According to the Federal Student Aid Data Center, 3.5 million borrowers owed a combined $113 million as of 2025.
Under the current federal student loan system, parent borrowers could qualify for loan forgiveness through two programs: Public Service Loan Forgiveness (PSLF) and income-driven repayment (IDR) forgiveness. But, President Trump’s One Big Beautiful Bill (OBBB) made substantial changes to student loans, and going forward, parents won’t qualify for those programs.
Here’s what you need to know if you have existing Parent PLUS Loans or will be taking them out in the future:
Current Parent Student Loan Forgiveness Programs
There are two ways parent borrowers can qualify for loan forgiveness for their federal student loans:
IDR Forgiveness
An IDR plan can make payments more affordable for borrowers. These plans base your payments on a percentage of your discretionary income, and you have a repayment term of 20 or 25 years. If, at the end of the loan term, you still have a balance, the government forgives the remainder.
There are several IDR plans, but the only one available to Parent PLUS Loan borrowers: Income-Contingent Repayment (ICR). To take advantage of this option, borrowers must first consolidate their loans with a Direct Consolidation Loan. Once the loan is consolidated, the borrower can enroll in ICR.
Under the ICR plan, your payments will be the lesser of 20% of your discretionary income and what you’d pay in fixed monthly installments over 12 years. Parent loan borrowers are eligible for forgiveness of their remaining loan balance after 25 years.
Learn More: Challenges to IDR Plans in 2025
PSLF
PSLF is a federal loan forgiveness program for non-profit and government agency employees. If you work for an eligible employer full-time for at least 10 years and make 120 qualifying monthly payments, the remaining loan balance is forgiven.
Parent PLUS Loan borrowers can qualify for PSLF if they work for a qualifying employer. But, for their payments to count toward PSLF, they need to consolidate their loans with a Direct Consolidation Loan and enroll in ICR. Once enrolled, they can make progress toward the 120 required payments necessary for PSLF.
Learn More: What PSLF Applicants Should Know After the OBBB
How Parental Student Loan Forgiveness Is Changing
The OBBB made major changes to the student loan system, such as capping how much parents can take out in Parent PLUS Loans and repayment options.
For parent borrowers who hope they qualify for loan forgiveness, there are three key changes to be aware of:
ICR Won’t Be Available
For loans disbursed on or after July 1, 2026, ICR won’t be available as a payment option. As a result, parents won’t be able to enroll in ICR or qualify for forgiveness after reaching the end of the 25-year repayment term.
Parent Loans Aren’t Eligible for New Repayment Plan
The OBBB launched the Repayment Assistance Plan (RAP), which requires borrowers to make payments for 30 years before they can qualify for loan forgiveness. However, Parent PLUS Loans aren’t eligible for this repayment plan, so parents won’t qualify for forgiveness
No Path for Loan Forgiveness
Because parents won’t be eligible for ICR or the new RAP, there isn’t a path forward for loan forgiveness for Parent PLUS Loan borrowers. The only repayment option for parents who take out new loans on or after July 1, 2026, is the new standard repayment plan.
The new plan requires fixed monthly payments, and it bases your repayment term on your loan balance, and it can range from 10 to 25 years.
What to Do If You Have Existing Parent Student Loans
If you have existing Parent PLUS Loans and you want to apply for loan forgiveness, it’s important to take action quickly.
As long as you don’t take out another student loan on or after July 1, 2026, you’re still eligible for loan forgiveness under an IDR plan or PSLF. However, you do need to take these steps:
- Consolidate your debt: Parent borrowers must consolidate their loans with a Direct Consolidation Loan ahead of the July 1, 2026 deadline.
- Enroll in ICR: Before July 1, 2026, you must enroll in ICR and receive a confirmation from your lender that the application has been processed.
If you complete those steps, you can make progress toward ICR loan forgiveness or PSLF. If you miss those deadlines, you won’t be eligible for either form of loan forgiveness.
Managing Parent Student Loans
Most loan forgiveness programs for parents are only for Parent PLUS Loans; if you have private parent student loans, you aren’t eligible for forgiveness. If you want to tackle your debt and pay it off faster, student loan refinancing could be a useful alternative. You could potentially qualify for a lower rate, allowing you to save money over the life of the loan.
With ELFI, you can estimate potential parent loan refinancing rates without affecting your credit.