Understanding Parent PLUS loan forgiveness programs

By Carolyn Morris | Published on July 17, 2026

)

Every year, thousands of parents take out loans to help support their children through college. Currently, there are 3.6 million borrowers in the Parent PLUS loan program who owe a collective $110 billion in parent loans. While that may seem like a large number, it’s only about 3% of the total student loan debt in the U.S., which is currently $1.6 trillion.

Parent PLUS Loans come with a lot of benefits — they allow you to cover the full amount of your child’s tuition, and that can be a huge help to undergraduate students with minimal savings. However, large education bills can be a heavy burden on parents. However, if your child has graduated, is enrolled half-time, or is within six months of their graduation, you may qualify for federal relief programs. Here’s what you need to know about Parent PLUS Loan forgiveness and other options for debt relief.

Do Parent PLUS Loans Qualify for Student Loan Forgiveness Programs?

Short answer: No, Parent PLUS loans do not qualify for federal student loan forgiveness programs. Here are four ways to use this process to gain parent PLUS Loan forgiveness.

1. Register for the Income-Contingent Repayment Plan

The federal government offers four types of income-driven repayment plans for student borrowers. Income-contingent repayment (ICR) is the only one that accepts Direct Consolidation Loans that were once Parent PLUS Loans.

ICR is a federal program that can lower your monthly payments and offer loan forgiveness after 25 years for eligible applicants. According to the Federal Student Aid website, your monthly loan payment amount will be the lesser of the following:

• 20% of your monthly discretionary income, or
• What you would pay on a repayment plan with a fixed monthly payment over the course of 12 years, adjusted according to your income

Under the ICR Plan, your payment is based on your income and family size. This means that if your income increases over time, in some cases your payment may be higher than the amount you would have to pay under the 10-year Standard Repayment Plan. Since salary growth for many workers peaks in their late 40s to early 50s, this is an important factor to consider.

Something parents should be aware of when considering this option is that ICR plans extend your repayment period. As a result, your total interest payments will likely be higher over the life of the loan than they would be through the 10-year Standard Repayment Plan.

How to Consolidate Your Parent PLUS Loans

The first step to qualifying for an ICR plan is to consolidate your Parent PLUS Loans. First, you’ll have to apply for a Direct Consolidation Loan through your studentaid.gov account. If you’re approved, they’ll then reach out to you to share your new repayment terms. If you accept these terms, your loan consolidation process will begin.

Continue to pay your higher education loans like normal during the application period, unless the loan or loans are in deferment, forbearance, or you are in a grace period. Once you have confirmation that your new Direct Consolidation Loan is set up, you’ll begin making payments on that new, consolidated loan. Your loan servicer may change during this process, so keep an eye out for communications. You should receive an email or letter containing the name of your new servicer along with your new billing details.

2. Apply for Public Service Loan Forgiveness (PSLF)

While income-driven repayment plans are a good fit for some, the 25-year timeline can be hard to swallow. Another option through the federal government is the Public Service Loan Forgiveness (PSLF) program. Parents who work full-time for certain government entities or nonprofits, and who make 10 years of consistent qualifying payments, are eligible for loan forgiveness.

Borrowers need to be on an income-driven repayment plan to qualify for PSLF, so parents will still need to first apply for a Direct Consolidation Loan, and then apply for ICR. Once you’re approved for the ICR Plan, you’ll submit the PSLF Employment Certification form to get your loan on track for forgiveness.

This repayment strategy is an excellent fit for parents who already have made a career in a PSLF-qualifying position or industry. However, if you’re not among the populations who qualify for forgiveness, you may have to go another route.

3. See if You Qualify for Biden’s Loan Cancellation Program

Some Parent PLUS Loan borrowers also qualify for up to $20,000 of loan cancellation through President Joe Biden’s recent loan cancellation initiative. Federal student loan borrowers who did not receive a Pell Grant (a type of need-based federal financial aid) qualify to have up to $10,000 of their federal loans canceled. Those who did receive a Pell Grant can get up to $20,000 of their total student loan debt canceled.

Refinancing Your Parent PLUS Loans with a Private Lender

If consolidating and reconsolidating your loans sounds like too much of a headache, consider going another route: student loan refinancing. Refinancing is a way of trading in your old loans for a brand-new loan with a private lender. The new lender will pay off your previous loan balances and replace those debts with a private student loan. Because this is a new loan, it comes with new terms — and sometimes a lower interest rate.

Refinancing is popular among student loan borrowers, but it’s also a great option for parents. Since parent borrowers generally have a longer credit history than most graduates, they tend to have higher credit scores — and can therefore qualify for lower interest rates on their remaining balance when they refinance. A lower interest rate means you’ll be able to spend less money on interest charges — and put more of each payment toward the principal each month.

Keep in mind that parent loan refinancing turns your federal education loan into a private loan. This is irreversible. If you turn your federal loan into a private loan, you’ll permanently give up federal student loan repayment options, including access to loan forgiveness programs.

See How Much You Could Save with Earnest

Many parents work hard to finance their child’s college education — only later to discover the bill adds too much stress to their own personal finances. While there are a few federal programs that can provide relief to Parent PLUS loan borrowers, applying for these can involve a lot of red tape. Refinancing, on the other hand, can help you reduce your monthly student loan payments fast. It can also help you lower your interest rate, save money and get your finances back on track.

If you’re struggling to make your federal loan payments, consider a flexible refinance loan from Earnest. Check our student loan calculator to compare your rates today.

About the Author

Carolyn Morris

Carolyn is a content marketer and editor who specializes in financial services. With over a decade of experience in the financial services industry, Carolyn has a passion for demystifying the loan application and repayment process for students and their families.

Disclaimer

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1. Please note that you may lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan.

2. Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan.