What You Must Know Right Now

Title:

🎓 Parent PLUS Changes Are Coming: What You Must Do Before June 30, 2026

A clear roadmap for parents to avoid losing access to loan forgiveness and income-driven repayment

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🚨 Let’s Start with the Big Red Flag

If you’re a parent with a Parent PLUS loan—or you’re considering taking one out for your kid’s education—circle this date in red:

June 30, 2026.

Because after that day, everything changes.

You’ll lose access to Public Service Loan Forgiveness (PSLF). You’ll be shut out of income-driven repayment plans (IDR). And if you take out new loans after that? They’re stuck in rigid, standard repayment with no safety nets.

This isn’t a drill. It’s a seismic shift.

And the clock is already ticking.

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📌 What Just Changed (And What Hasn’t—Yet)

Congress quietly rewrote the rules for Parent PLUS loans, giving the Department of Education (ED) the job of filling in the messy details.

Here’s what we do know:

• No new Parent PLUS loans after June 30, 2026
• PSLF eligibility ends for new loans after that date
• Only one IDR plan will remain—and it’s stricter
• Loan limits and deferment options are tightening
• A new lifetime borrowing cap is coming (likely $50k per child)
• ED is rewriting the rulebook over the next two years

Until ED releases final regulations, some of this is still evolving—but the deadlines and direction are clear.

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🗓️ What You Must Do If You Already Have a Parent PLUS Loan

If you’re currently repaying a Parent PLUS loan—or thinking about forgiveness under PSLF—this is your short checklist to stay eligible:

✅ 1. Consolidate Your Loan by June 30, 2026

Why: It’s the only way to access Income-Contingent Repayment (ICR)

Bonus: You get grandfathered into more flexible deferment and forbearance rules

👉 Action: Use StudentAid.gov and give yourself months for processing delays

✅ 2. Enroll in ICR Immediately After Consolidation

Why: This locks in PSLF eligibility and starts the 120-payment clock

Important: Even if ICR is 20% of your discretionary income now, you might get grandfathered into the new 10% plan later

✅ 3. Download Your Payment History

Why: Servicers will sunset their systems by July 1, 2028—and mistakes in the data transfer are likely

👉 Tip: Save records now, and re-check after each PSLF certification

✅ 4. Certify PSLF Employment Annually

Why: It helps protect your PSLF progress if anything changes with your job or the rules

✅ 5. Think Twice Before Taking Out More PLUS Loans

Why: Any loans disbursed after June 30, 2026 will be locked out of PSLF and IDR

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🧭 What If You Haven’t Borrowed Yet?

You still have time—but not much.

Here’s how the landscape shifts after July 1, 2026:

• No PSLF or IDR options for new loans
• Interest accrues immediately—no subsidized options
• Deferment and forbearance rules tighten
• You’re stuck with a 10-year (or maybe 25-year) repayment plan

So what can you do?

• Front-load borrowing into 2025-26 (if needed and possible)
• Check if 529 funds or employer repayment help can offset the difference
• Reconsider how much you truly need to borrow

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📅 Key Dates That Matter

Date	What Happens
July 1, 2025	Law takes effect; ED begins rulemaking
Nov 15, 2025 (est.)	Draft rules released—keep an eye out
June 30, 2026	🔴 Final day to consolidate + enroll in ICR to keep PSLF eligibility
July 1, 2026	No new Parent PLUS originations under old rules
July 1, 2027	New IDR plan goes live; deferments tighten
July 1, 2028	All loans moved to the new repayment system

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🌀 What’s Still Unclear (But Coming Soon)

ED still has to answer these big questions:

• What’s the actual lifetime cap per child? ($50k is the placeholder—but it may be higher or lower)
• Can you switch from ICR to the new 10% IDR automatically?
• How will spousal income be treated in the new IDR?
• What happens if you need to reconsolidate later—will you lose PSLF credit?
• Will ED fix their data migration system—or make a mess of it again?

Until these get finalized, stay flexible, but don’t wait to act.

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🔧 Step-by-Step Action Plan (Bookmark This)

1. Go to StudentAid.gov and download your complete aid history
2. Use the Loan Simulator to preview your ICR payments
3. Schedule a consolidation well before spring 2026
4. Enroll in ICR as soon as your consolidation completes
5. Certify PSLF-eligible employment every year
6. Avoid new Parent PLUS borrowing unless absolutely necessary
7. Subscribe to updates on rulemaking via FederalRegister.gov
8. Consider 529 plans or employer benefits to replace PLUS loans

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⚠️ Why This Matters (and Why You Shouldn’t Wait)

These changes are not just tweaks. They completely alter the game.

Once the door closes on June 30, 2026, it’s closed for good.

No appeals. No exceptions.

If you want to keep access to loan forgiveness and income-based payments, you must act before that deadline.

Otherwise? You could be stuck paying off a Parent PLUS loan on a 10-year fixed plan—with no flexibility—while watching others qualify for forgiveness you just missed.

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💬 Still Have Questions?

Don’t wing it alone. This is one of those moments where getting expert help can save you tens of thousands in the long run.

• Need a strategy? Consider reaching out to a student loan attorney like Jay Fleischman or talk to a trusted debt coach like Damon Day.
• Want more info like this? Subscribe to GetOutOfDebt.org for updates and actionable advice.

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📚 Want to Go Deeper?

If this post hits home, here’s a book I wrote that might help:

👉 Eliminate Your Debt Like a Pro — packed with practical steps and real-life examples to help you navigate repayment like a champ.

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🔁 TL;DR — The One Sentence You Must Remember

Consolidate and enroll in ICR by June 30, 2026—or say goodbye to Parent PLUS forgiveness options forever.

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FAQ (People Also Ask)

Q: Can I still take out a Parent PLUS loan after June 30, 2026?

A: Technically yes, but it will come with stricter repayment terms, no PSLF, and no IDR. It’s an entirely different loan world.

Q: What happens if I miss the June 30, 2026 deadline?

A: You’ll be excluded from PSLF and IDR. Any PLUS loan you hold will be forced into standard repayment.

Q: Does this affect Grad PLUS loans?

A: Yes, Grad PLUS originations will also stop under current rules on July 1, 2026. New caps and terms will apply.

Q: Do I have to reconsolidate if I already have a Direct Consolidation loan?

A: No—if you’ve already consolidated and enrolled in ICR, you’re safe. Just make sure you’re actively enrolled in ICR and track your PSLF progress.

Q: Where do I check my loan type and history?

A: Head to StudentAid.gov and click “Download My Aid Data.”

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