Parent PLUS Post-Consolidation Deadline Fallout
Key Questions
What happens to Parent PLUS borrowers who missed the June 30 consolidation deadline?
Borrowers who missed the deadline face permanent loss of access to all IDR plans, with no path back to income-driven repayment. New loans now carry a 9.07% interest rate, and new annual and aggregate limits of $20.5k and $65k take effect July 1, 2026.
Are Parent PLUS loans eligible for the new RAP repayment plan?
Parent PLUS loans are excluded from RAP and have no IDR options remaining. Borrowers must use standard or extended repayment plans or pursue private refinancing.
What ongoing issues affect Parent PLUS borrowers after the deadline?
MOHELA continues to experience backlogs and scams targeting borrowers. A new salvage guide outlines the limited repayment options now available.
June 30 consolidation deadline has passed. Borrowers who missed it face permanent loss of all IDR plans. New loans now at 9.07%. New $20.5k/yr $65k Parent limits effective July 1, 2026. MOHELA backlogs and scams continue. A new salvage guide explains that Parent PLUS loans are excluded from RAP; options are now limited to standard/extended repayment or private refinancing. Borrowers who missed the deadline have no IDR path left. A new practical guide details how to pause payments via deferment, forbearance, or $0 IDR, including in-school deferment and interest capitalization costs.