The Ultimate Guide to Parent Plus Loan Forgiveness

Editor's note: If you have Parent PLUS Loans and haven’t consolidated yet, you're facing a time-sensitive decision. To remain eligible for income-driven repayment (IDR) plans, you must complete a Direct Consolidation Loan and have it disbursed by June 30, 2026. Missing this deadline could significantly limit your repayment options, potentially locking you out of lower monthly payments and forgiveness pathways. Additionally, any new Parent PLUS Loans taken out after July 1, 2026 will also make you ineligible for all forms of income-based repayment.

You had the best intentions by helping your kids pay for college using Parent PLUS Loans. But now that you’re nearing retirement age, the Parent PLUS Loan debt is a heavy burden and source of anxiety. So, what can you do? Are there any other repayment options? Can Parent PLUS Loans be forgiven?

The good news is that there are ways to pursue Parent PLUS Loan forgiveness. Unfortunately, some of these paths won't be available unless you act quickly! Read on to learn about how to get out from under a Parent PLUS Loan so you can alleviate financial stress.

Related: Parent PLUS Loans in 2026: Why You Need to Consolidate Before June 30

How to get rid of Parent PLUS Loans

If you want to figure out how to get rid of Parent PLUS Loans, we’ve outlined seven possible ways to get your loans forgiven or repayment assistance that can help offset costs. To test out different scenarios, check out our parent loan repayment estimator and calculator to see what may be the best option for you.

1. Public Service Loan Forgiveness (PSLF)

Parent PLUS Loan borrowers who work in the public sector, such as for the government or qualifying nonprofits or hospitals, could be eligible for the Public Service Loan Forgiveness program. However, current Parent PLUS borrowers will need to act quickly to maintain access to this strategy.

Through PSLF, it’s possible to get parent student loan forgiveness after serving in the public sector for a decade. To qualify, you must work for an eligible organization or institution for 10 years and make 120 total loan payments. You must also be on an income-driven repayment (IDR) plan.

Parent PLUS Loans don’t qualify for PSLF on their own. To become eligible, you must first consolidate them into a Direct Consolidation Loan.

Once consolidated, you can access the only IDR plan currently available to Parent PLUS borrowers: Income-Contingent Repayment (ICR). After making just one payment under ICR, you can then apply to switch into the Income-Based Repayment (IBR) plan, which typically results in significantly lower monthly payments.

Previously, borrowers relied on the double consolidation loophole to access plans like IBR or PAYE. Due to recent changes under the One Big Beautiful Bill Act, that workaround is no longer necessary to access IBR for Parent PLUS borrowers.

However, these changes also introduced a critical deadline. To remain eligible for income-driven repayment — and therefore PSLF — you must complete a Direct Consolidation Loan and have it fully disbursed by June 30, 2026. Any Parent PLUS consolidations or new Parent PLUS Loans after this date will not be eligible for income-driven repayment options.

So, Parent PLUS borrowers pursuing PSLF should:

• Apply for a Direct Consolidation Loan as soon as possible (must be disbursed by June 30, 2026).
• Enroll in any eligible IDR plan (make at least one ICR payment and then move to IBR).
• Work full-time in the public sector with a qualifying employer for 10 years
• Make 120 qualifying payments

To stay on track with your progress, you can fill out the PSLF Employment Certification Form each year. Once you’ve met all of the requirements, you can officially apply for PSLF.

If you go this route, there are no tax bills related to the forgiven loan balance which isn’t the case for all forgiveness options (more on that later).

2. Long-term IDR Forgiveness

Loan forgiveness through an IDR plan is available to Parent PLUS borrowers but is underutilized because it requires the same Direct Consolidation Loan workaround to access qualified repayment plans. Which again, must be completed by June 30, 2026 to access any type of income-driven repayment options.

If you've already consolidated and are on the ICR plan, you can go ahead and apply to move into the IBR plan to save money as it typically results in a significantly lower monthly payment. Why is this?

Income-contingent repayment is based on the lesser of either:

1. 20% of your discretionary income (divided by 12), or
2. The amount you’d pay with a fixed monthly payment over 12 years (adjusted based on income)

ICR monthly payments also factor in a 100% federal poverty line deduction based on your family size and require 25 years of repayment before your remaining loan balance is forgiven.

Whereas IBR payments are based on 10% to 15% of discretionary income and offer a 20- to 25-year forgiveness timeline, depending on when you originally took out the loans.

Regardless of which IDR plan you pursue, you’ll need to complete a Direct Consolidation Loan before the June 30, 2026 deadline. From there, most borrowers will benefit from making one payment under ICR and then switching to IBR to lower their monthly payment and maximize forgiveness, rather than staying on ICR until it sunsets on June 30, 2028.

Forgiveness at the end of your term

Through this student loan repayment strategy, you’ll pay 10% to 20% of your discretionary income over a 20- to 25-year repayment term, depending on ICR vs. IBR repayment. Having a small percentage go to your loans over a longer term means you’ll have lower student loan payments, but you’ll accrue a lot more interest.

There’s some relief in sight, though. If you still have a remaining balance at the end of the repayment term, it’s possible to have your loans wiped away with student loan forgiveness.

One big caveat — according to current tax law, you’ll be liable for paying taxes on the amount that’s forgiven. While a provision of the American Rescue Plan allowed for temporary tax-free loan forgiveness through December 2025, that benefit was not extended. Therefore, if you pursue Parent PLUS Loan forgiveness this way, it's best to set aside money for the tax consequences later on.

That said, if your financial situation isn’t so great, you might get a pass because of something called the “insolvency rule”. The IRS typically considers anyone with more debt than assets “insolvent” and doesn’t tax forgiven debt as income in this case.

You’ll want to keep track of your payments, recertify your income annually and stay in good standing on your repayment plan. At the end of the repayment term, you’ll apply for parent student loan forgiveness with your loan servicer.

3. Refinance loan into child’s name

As a Parent PLUS borrower, the student loan debt for your child’s education are in your name. You’re solely responsible for paying back the loans, whether you want to or not.

In the past few years, another option has come on the scene to help. Some student loan refinancing lenders allow you to refinance your Parent PLUS Loans into your child’s name.

You’ll need to get their consent, of course, and make sure they have good enough credit and income to qualify for the refinancing loan and maintain payments.

If your child qualifies, they could take out a student loan refinance in their name that pays off your Parent PLUS Loan. The refinance loan could save them money on interest by securing a new, lower rate.

Be aware that refinancing with a private lender will pay off the federal Parent PLUS Loan, so student loan forgiveness through PSLF or IDR will no longer be available.

4. Refinancing on your own

Although this option isn’t exactly loan forgiveness, you still might save money on Parent PLUS Loans by refinancing them yourself. PLUS Loans have some of the highest interest rates of all federal loan types, which makes the interest accruing a difficult beast to battle.

Compare various refinancing lenders and see if you qualify for a much lower rate. Make sure the repayment term and rate works for you, financially. Again, remember that you’ll lose access to forgiveness options through PSLF or ICR/IBR.

5. Bankruptcy

Generally, you can’t discharge your student loans in bankruptcy, but there’s a small chance that it’s possible. To qualify, you’ll need to file for Chapter 7 or 11 bankruptcy. You must show that making payments is causing “undue hardship” on you and your dependents.

According to the Federal Student Aid website, if the courts deem your repayment as causing undue hardship, one of the following scenarios could occur:

• Your loan might be fully discharged, and you won’t have to repay any portion of your loan. All collection activity will stop.
• Your loan might be partially discharged, and you’re still required to repay some portion of your loan.
• You might be required to repay your loan, but with different terms, such as a lower interest rate.

Applying for bankruptcy can severely damage your credit for seven to 10 years, and it costs several hundred dollars to file. Be sure to get professional counsel and review the pros and cons before taking this drastic measure.

6. Disability

If you’re currently disabled or become disabled, you might be able to get your Parent PLUS Loan forgiven through Total and Permanent Disability Discharge. You’ll have to apply and provide documentation from a physician, the Social Security Administration, or the U.S. Department of Veterans Affairs.

It’s important to note that you, as the borrower, must meet the disability criteria, not your child. To get started, apply for Total and Permanent Disability Discharge on the Financial Aid site.

7. Death

Thinking of your own death is never pleasant. But the good news is that if you die with a Parent PLUS Loan, the loan dies with you as well. It doesn’t get passed on to your child or anyone else. Similarly, if your child dies, your loans will also be discharged.

How to delay payments on Parent PLUS Loans

For many Parent PLUS borrowers already enrolled in ICR or another IDR plan, the name of the repayment game is going to be “delay, delay, delay”. That way payments begin when you’re in a lower income stage of life. In which case, you can request up to three years of forbearance if you’re experiencing financial hardship. You also have the option to defer payments for the entire length of your child’s education, and you can keep deferring if another child goes to school.

With this strategy, the whole goal is delaying payments that would be substantially higher during your income-earning years.

However, we don't recommend asking for forbearance after consolidating right now. This is because you only have until June 2028 to enroll in an IDR plan under the new rules, or you'll be cut off from affordable repayment options. You don't want to risk forgetting to enroll or re-enroll later.

Bottom line

There are many approaches to consider if you want to get rid of your Parent PLUS Loan debt. But with the impending Parent PLUS cliff, you need to act with urgency to access better repayment and forgiveness options.

If you need help figuring out the best option for your situation, schedule a consultation with us today. We specialize in creating a repayment strategy for those with six-figure debt and will help you save money on your Parent PLUS Loans.

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