Parent Plus Loan Borrowers Encouraged to Act Now

The One Big Beautiful Bill Act (OBBB) will bring about changes to the entire student loan landscape and this month we are highlighting some of the changes to Parent PLUS Loan borrowing.  

Parent PLUS Loans Disbursed BEFORE 7/1/2026

Parent PLUS Loan borrowers who borrow or have borrowed prior to the rule changes (eff. 7/1/2026) may continue to borrow under the current rules for up to three academic years. The current maximum PLUS loan amount parents can borrow is cost of attendance at the school your student attends minus any other financial assistance your student receives (cost of attendance is determined by the school). Head over to StudentAid.gov for current repayment options.

We strongly recommend and encourage existing Parent PLUS Loan borrowers to review their loans and consider consolidation. Only borrowers who consolidate prior to 7/1/2026 and are enrolled in any IDR plan between now and 7/1/2028 will have eligibility for the Income-Based Repayment Plan after 7/1/2026.  

Parent PLUS Loans Disbursed AFTER 7/1/2026

As a result of the OBBB, Parent PLUS Loan borrowers will see tighter borrowing limits and fewer repayment options on loans disbursed on or after July 1, 2026. All parents (combined) may borrow up to $20,000 per year per dependent student and $65,000 aggregate (lifetime) per dependent student. Additionally, Parent Plus loans disbursed after 7/1/2026 will only have access to the New Standard repayment plan. Income-Driven Repayment plans and the Repayment Assistance Plan (RAP) will not be available for these loans.

Notice of Proposed Rulemaking Issued for Public Service Loan Forgiveness (PSLF)

The Department of Education (ED) has issued a notice of proposed rulemaking to amend the regulations on the Public Service Loan Forgiveness (PSLF) program to exclude employers that “engage in activities that have a substantial illegal purpose.” If enacted, this would allow the ED to make “illegal purpose” determinations which could lead to an organization losing status as a PSLF qualifying employer. Borrower payments while employed at disqualified organizations would not count toward the 120 payments required for forgiveness after a determination for wrongdoing is found.  

The Department of Education is accepting comments until September 17, 2025.

A brief summary of these proposed regulations is available here:

• Regulations.gov | Document ID ED-2025-OPE-0016-7221

Upcoming Negotiated Rulemaking Sessions

The Department of Education announced in July 2025 the creation of the Reimagining and Improving Student Education (RISE) Committee to address federal student loan-related changes. The RISE committee will have multiple sessions starting at the end of September 2025 for negotiated rulemaking. 

Session registration and information can be found here.

Session Dates and Times:

September 29 – October 3, 2025

9:00 am – 12:00 pm, 1:00 pm – 4:00 pm ET

November 3 – 7, 2025

9:00 am – 12:00 pm, 1:00 pm – 4:00 pm ET

Student Borrower Protection Center (SBPC) Expands and Rebrands

Student Borrower Protection Center (SBPC) announced September 9, 2025, that they have rebranded as Protect Borrowers, a national policy, advocacy, and litigation nonprofit. Protect Borrowers team of advocates, attorneys, and experts will continue the important work of fighting for student loan borrowers’ rights, as well as building upon SBPC’s legacy—advocating for families burdened by debt.