Can Parent PLUS Loans Be Lowered After July 1, 2026?

Can Parent PLUS Loans be lowered after July 1, 2026?

Beginning July 1, 2026, new federal student loan policy changes are expected to significantly limit the repayment options available to Parent PLUS borrowers. These changes may make it more difficult for parents to qualify for income-driven repayment plans that are currently used to reduce monthly payments and work toward loan forgiveness.

As of now, Parent PLUS Loans do not automatically qualify for most income-driven repayment (IDR) plans unless they are first consolidated into a Direct Consolidation Loan. In some cases, borrowers may be able to use consolidation strategies to access repayment plans based on income, which can potentially lower monthly payments depending on financial eligibility.

However, after July 1, 2026, borrowers who wait may find that certain repayment pathways are no longer available for newly disbursed loans or for those who have not taken action beforehand. This means that parents who are hoping to reduce their monthly payments based on income may need to review their current loan structure and repayment options before the upcoming policy changes take effect.

Parent PLUS borrowers who are currently enrolled in the wrong repayment plan may be paying more than necessary each month or delaying their eligibility for forgiveness programs. Reviewing repayment options prior to the 2026 deadline may allow borrowers to explore whether they qualify for alternative repayment plans that are better aligned with their financial situation.

At Aved Consulting Firm, we work with Parent PLUS borrowers to understand their federal repayment options, evaluate consolidation pathways where appropriate, and determine whether their current repayment plan is the most beneficial under the upcoming 2026 student loan changes.

Borrowers should review the upcoming Student Loan Changes Coming July 1, 2026 before choosing or remaining in a repayment plan that may impact their long-term loan forgiveness eligibility or monthly payment amount.

If you are a parent who borrowed federal loans for your child’s education, it may be important to take action before the July 1, 2026 deadline to explore repayment strategies that could help reduce monthly payments or preserve access to income-based repayment options where available.

Published: January 22, 2026
Updated: January 22, 2026