For years, Parent PLUS loan borrowers have had very limited options when it comes to income-driven repayment plans. Under the existing system, parents could only use the Income-Contingent Repayment (ICR) plan after consolidating their PLUS loans — and that’s generally a less generous plan than other income-based options. But thanks to changes from the One Big Beautiful Bill Act (OBBBA), there’s now a critical window for Parent PLUS borrowers to qualify for Income-Based Repayment (IBR) — and potentially much lower monthly payments.

What OBBBA Changed

OBBBA overhauls federal student loan repayment options starting in mid-2026. One of the biggest shifts is that new Parent PLUS loans issued on or after July 1, 2026 will not be eligible for income-driven repayment plans, including IBR.

That means if you already have Parent PLUS loans now — or take action before the deadline — you still have a chance to secure more flexible repayment options that could shrink your monthly payments and preserve eligibility for forgiveness options like Public Service Loan Forgiveness (PSLF).

Here’s What You Must Do

1. Consolidate Your Parent PLUS Loans Before July 1, 2026.
   Only Parent PLUS loans that are consolidated into a Direct Consolidation Loan that disburses before July 1, 2026 will be eligible for income-driven repayment plans. Experts recommend applying well before that date — often by early April 2026 — to ensure your paperwork processes in time.
2. Enroll in ICR (First) and Then IBR.
   Once you consolidate, you’ll typically start in ICR — the only income-driven plan available to PLUS loans at the outset. After making at least one full ICR payment, you can then apply to switch to IBR.
3. Do It Before July 1, 2028.
   To retain access to income-based plans, you must enroll in ICR and make at least one payment before July 1, 2028. After that date, ICR will be phased out and borrowers will be moved to the new Repayment Assistance Plan (RAP) or standard plans — but RAP is not available for Parent PLUS loans.

Why It Matters

Once you’re on IBR, your monthly payment is based on your current income and family size, not your loan balance. For many families, that can mean payments that are significantly lower — especially during years of lower income, retirement, or job changes.

But the clock is ticking. If you have Parent PLUS loans now, taking action today could secure access to one of the most affordable repayment options available before those doors close.