Big Changes to Student Loans: What Parents Need to Know 

Sweeping reforms to repayment plans and borrowing rules are in effect in 2026, following the passage of H.R.1 — the Big Beautiful Bill. These changes affect Parent PLUS borrowers and families planning for college costs. Find out what’s changing, when it’s happening, and how to protect your options.

Parent PLUS Borrowers: Take Action Before March 31, 2026

Under the new law, repayment options for Direct Parent PLUS loans will be restricted. If you have Direct Parent PLUS loans and do not plan to take out additional federal student loans after 2026, taking action now is essential to preserve access to income-driven repayment plans and loan forgiveness.

✅ Apply online for a Direct Consolidation Loan on your Parent PLUS loans by March 31, 2026
✅ Enroll in the Income-Contingent Repayment (ICR) plan
✅ Make at least one payment under ICR to qualify for the Income-Based Repayment (IBR) plan

Why This Matters

After July 1, 2026, unconsolidated, new, or reconsolidated Parent PLUS loans will only qualify for the Standard Repayment Plan—which means higher monthly payments and no forgiveness options, like Income-Driven Repayment Forgiveness or Public Service Loan Forgiveness.  Because consolidation typically takes 4–6 weeks, and processing delays are common, we recommend completing your consolidation before March 31, 2026 to avoid last-minute issues and protect your eligibility.

👉 Start Your Consolidation Now

Important: Taking out a new federal student loan after July 1, 2026 will cause you to lose access to income‑driven repayment and forgiveness for Parent PLUS loans, even if they are consolidated.

Parent Plus Loan Repayment Options

Consolidated Parent Plus Loans:

If you consolidate your Parent PLUS loans before July 1, 2026 and do not take out additional federal student loans after that date, you may be eligible for two income‑driven repayment (IDR) plans:

• Income‑Contingent Repayment (ICR)
• Income‑Based Repayment (IBR)

Important: To access IBR—which is often more affordable—you must first consolidate your Parent PLUS loans and enroll in ICR, and then make at least one payment under ICR. You can then transition to IBR. ICR will be phased out by July 1, 2028, making it critical to take action early.

Unconsolidated (Direct) Parent Plus Loans:

If you have unconsolidated Direct Parent PLUS loans or you take out any additional federal student loans after July 1, 2026, your only repayment option will be the Standard Repayment Plan, which is not based on income.

👉 See Repayment Plan Calculator 

Standard Repayment Plan

The Standard Repayment Plan bases your monthly payment on your total loan balance, interest rate, and repayment term, which can range from 10 to 25 years, depending on how much you owe. Payments are not based on income. Payment details and examples are below.

• Minimum payment: $50 (if the calculated amount is lower)
• Enrollment: Automatic upon entering repayment. You can also contact your student loan servicer to enroll. 
• Forgiveness: Not eligible for forgiveness programs, including PSLF or income‑driven forgiveness

Loan Amount	Repayment Period	Monthly Payment Range	Total Interest	Total Amount Repaid
Less than $25,000	10 years (120 payments)	Up to $284	Up to $9,064	Up to $34,063
$25,000 – $49,999	15 years (180 payments)	$218 – $436	$14,199 – $28,399	$39,199 – $78,398
$50,000 – $99,999	20 years (240 payments)	$373 – $746	$39,468 – $78,936	$89,468 – $178,935
$100,000 or more	25 years (300 payments)	$675+	$102,562+	$202,562+

Married and Managing Student Loans?

Learn about tax filing strategies and repayment plans for couples. Get expert tips to save money this year.
👉 See Tax & Repayment Guidance

Planning to Help a Loved One Pay for College?

Starting July 1, 2026, new borrowing rules and loan limits take effect. Here’s how you can plan ahead now: 

• Learn more about new loan limits, grandfathering, & borrowing rules.
• See changes coming to student loans over the next few years and how to prepare.