The Department of Education has proposed a new forgiveness pathway for Parent PLUS loan borrowers that could cancel up to $50,000 per eligible parent, potentially affecting 3.6 million borrowers.
Proposed Program Details
Under the new Income-Contingent Repayment expansion, Parent PLUS borrowers who have been in repayment for 20+ years would receive full balance forgiveness. Those with balances under $50,000 would receive forgiveness after 15 years.
Who Qualifies
- Parent PLUS loan borrowers in ICR plans
- Minimum 15-20 years of qualifying payments
- Loans originated before July 1, 2025
- Must consolidate into Direct Consolidation Loan first
Timeline
Public comment period runs through June 2026, with the final rule expected by September. If approved, the first wave of forgiveness could begin in early 2027. Borrowers should consolidate and enroll in ICR now to start the clock.
