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Millions of Americans with Parent PLUS loans are at risk of losing access to student loan forgiveness under President Donald Trump’s “Big, Beautiful Bill,” Forbes reports.
The “Big, Beautiful Bill,” which passed in July, overhauled the federal student loan system, ending several income-driven repayment (IDR) plans, limiting new debt relief options, and imposing tighter restrictions on Parent PLUS borrowers.
Prior to the measure, Parent PLUS borrowers could become eligible for the Income-Contingent Repayment (ICR) plan, which provides loan forgiveness after 25 years, by consolidating into a federal Direct Consolidation Loan. However, Trump’s new law eliminates ICR by July 1, 2028 and excludes Parent PLUS borrowers from the newly created Repayment Assistance Plan (RAP), which offers forgiveness after 30 years.
The only remaining path to forgiveness will be the Income-Based Repayment (IBR) plan. However, borrowers must consolidate their Parent PLUS loans before July 1, 2026, and enroll in an IDR plan by July 1, 2028, to remain eligible for forgiveness.
“The Big Bill significantly changes Parent PLUS borrowers’ repayment options,” the National Consumer Law Center (NCLC) said in a statement. “Existing Parent PLUS borrowers who do not jump through these hoops in time will be locked out of income-driven repayment options, which could make it very difficult to manage their loans if they cannot afford fixed payments.”
Borrowers who take out new Parent PLUS loans or consolidate after the July 2026 deadline will be considered new borrowers and lose access to both IBR and forgiveness programs. Advocates are urging borrowers to take immediate action to consolidate and enroll in an eligible plan to avoid being permanently shut out of federal student loan relief.
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