Several million federal student loan borrowers could lose access to affordable payments and student loan forgiveness if they do not act by April 1, 2026. Many borrowers may not know this deadline exists.
The deadline comes from major changes under the One Big, Beautiful Bill Act, passed by Congress and signed by President Donald Trump in 2025. The law removes several income-based repayment plans and limits paths to loan forgiveness. Parent PLUS borrowers are among the most affected.
Parent PLUS loans are federal loans taken out by parents to pay for a child’s undergraduate education. The parent, not the student, is responsible for repayment. These loans already had fewer repayment options than other federal loans.
Before the new law, Parent PLUS borrowers could access income-driven repayment only if they consolidated their loans into a Direct Consolidation Loan. Even then, they could use only the Income-Contingent Repayment (ICR) plan. ICR allowed payments based on income and offered forgiveness after 25 years, or after 10 years through Public Service Loan Forgiveness (PSLF).
The new law will eliminate the ICR plan by July 1, 2028. To keep any path to income-driven repayment or forgiveness, borrowers must act earlier. Parent PLUS borrowers who have not yet consolidated must complete consolidation before July 1, 2026.
Because consolidation can take one to three months, experts urge borrowers to apply by April 1, 2026. This ensures the consolidation loan is fully processed before the July deadline. The loan must be disbursed by June 30, 2026, not just applied for.
Borrowers who meet the deadline and enroll in ICR will later be allowed to move into the Income-Based Repayment (IBR) plan when ICR ends. IBR still offers income-based payments and loan forgiveness, including through PSLF.
Borrowers who miss the consolidation deadline or take out any new student loans after July 1, 2026 will lose access to income-driven repayment and all student loan forgiveness options for Parent PLUS loans. For these borrowers, payments may become significantly higher.
Advocacy groups warn the window is closing fast. Parent PLUS borrowers who want lower payments or forgiveness must act soon, or they may lose these benefits permanently.
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