- The Senate version of the student loan reform bill would block Parent PLUS borrowers from accessing any income-driven repayment (IDR) plan unless they are already enrolled in Income-Contingent Repayment (ICR) the day before the bill becomes law.
- Parents who used the double consolidation method must be in repayment under ICR specifically, not any other IDR plan to stay eligible for future options under the bill.
- Borrowers not already enrolled in ICR will lose access to all IDR plans under the proposal, including the new Repayment Assistance Plan (RAP), which would be closed to Parent PLUS loan holders.
Parent PLUS borrowers are facing a narrow window to secure their options for affordable student loan repayment. Under the proposed Senate version of the Big Beautiful Bill, any borrower not already enrolled and in repayment on the Income-Contingent Repayment (ICR) plan on the day before the bill is signed into law will lose access to all income-driven repayment options.
It also bars Parent PLUS borrowers from switching to the new Repayment Assistance Plan (RAP), a sliding-scale plan created by the bill that replaces existing IDR programs like SAVE and PAYE.
The clock is ticking for Parent PLUS borrowers to act, but honestly, there may not be enough time to even make changes before the bill is signed into law. Current estimates are that legislators are trying to pass the final bill before the July 4th 250 Year Anniversary Celebration.
The End Of IDR Access For Parent PLUS Loans
The legislation makes a sharp break from current policy by eliminating access to ICR, PAYE, and SAVE for Parent PLUS borrowers. The only option that remains for income-driven repayment is the amended IBR, but only for those already on ICR when the law takes effect. This rule is particularly important for borrowers who used the double consolidation strategy, a legal workaround allowing Parent PLUS loans to qualify for IDR.
If a borrower completes double consolidation but is on the wrong plan, such as SAVE or PAYE, they will be locked out of any income-driven options once the bill becomes law. Being on ICR alone is what countsnot simply being enrolled in an IDR plan.
Borrowers who aren’t currently on ICR and don’t switch in time will be forced into the bill’s new standard repayment plans, which run from 10 to 25 years depending on balance and offer no income protections.
What Parent Borrowers Should Consider Right Now
Borrowers with Parent PLUS loans, and especially those who used double consolidation, need to carefully assess their current repayment plan. The clearest path to maintaining income-driven repayment eligibility under the new law is to enroll in ICR immediately and enter repayment.
Here’s what to keep in mind for Parent PLUS loan borrowers:
- Timing matters: You must be in repayment under ICR the day before the bill is signed.
- Other IDR plans won’t count: Being on SAVE, PAYE, or any plan other than ICR disqualifies you from future IBR eligibility under the new system.
- Amended IBR is only open to borrowers with active loans before the law takes effect: Any new loans issued after the bill’s effective date will have no access to ICR, IBR, or RAP.
For borrowers unable to qualify for ICR due to not having a consolidation loan, you would have to consolidate first, the apply for ICR. Given there is likely only about 3 weeks before the bill goes into effect, there may not be enough time to make it happen.
And based on the current wording, there are no IDR options available to Parent PLUS borrowers once the law is enacted.
What To Know Moving Forward
There is no grace period once the law is signed.
The amended IBR program under the new bill is only available to those who are already on an income driven repayment plan. The Senate version of the bill shuts down Parent PLUS eligibility for the new RAP plan altogether. That means the window to switch into ICR and enter repayment may be days or weeks, depending on legislative timing.
The bill still has to be reconciled between the House and Senate. So this isn’t the final version. If this impacts you, now is the time to contact your Senator or Representative. The final bill will likely be unveiled by the end of June and signed into law shortly after.
Families that took on loans for their children’s education may find themselves excluded from affordable repayment tools unless they act immediately.
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