Effects on existing Parent Borrowers

Parent Borrowers who do not take out loans after July 1, 2026: Parent borrowers who do not have any loans issued after July 1, 2026, are still able to consolidate their loans and enroll in the ICR.  When the ICR plan sunsets in 2028, borrowers will be transitioned to the IBR plan.  

Parent borrowers who begin or continue to take out federal loans after July 1, 2026: Parent borrowers who take out any loans after July 1, 2026, are not eligible for ANY IDR plan.  

Bottom Line: If you currently hold Parent Plus Loans and do not plan on taking any more, you have less than a year to get them consolidated and into an ICR repayment plan.