Having trouble viewing this email? View it as a Web page [ [link removed] ].

Michigan Department of Lifelong Education, Advancement, and Potential - Office of Higher Education




Parent PLUS Loan Repayment Alert

Recent changes to federal student loan programs under the One Big Beautiful Bill (OBBB) have significantly altered repayment options for new and existing Parent PLUS loans. These changes could have serious financial consequences for families if not understood and addressed promptly. 

What Changed

Previously, parents who borrowed Parent PLUS loans had the option to consolidate and enroll in the only Income-Driven Repayment (IDR) Plan available to Parent PLUS borrowers, the *Income-Contingent Repayment (ICR) plan. *This plan offers: 


* Payments based on income (sometimes as low as $0 per month) 
* A monthly payment cap at 20% of discretionary income 
* A path to eventual loan forgiveness 

The protection to consolidate and enroll in the ICR plan is no longer available for new Parent Plus loans and existing Parent Plus loans after *June 30, 2026*. Under the new rules, *Parent PLUS borrowers will only have the newly Tiered Standard Repayment Plan [ [link removed] ]*-with fixed monthly payments based on the total amount borrowed.

Why This Matters

* Parent PLUS loans can be as high as $65,000 per student and many parents already owe more than $100,000.  
* When applying for a Parent PLUS Loan, families are not assessed on their ability to afford the payments—only on whether they have an adverse credit history. 
* Without income-driven repayment, families who cannot afford large monthly payments risk:  
* Damaged credit scores 
* Wage garnishment 
* Tax refund and Social Security withholding  

There is a Limited Window to Protect Repayment Options

If you already have Parent PLUS loans, consolidate [ [link removed] ] your Parent PLUS loans *before June 30, 2026*.  


* The consolidation has to be processed, approved, and funded by June 30, 2026 to remain eligible for IDR plans, like ICR.
* Apply as soon as possible to ensure adequate processing time. Consolidation application processing times will vary and may be longer than usual.  

Families who act quickly may still benefit from existing repayment options before they disappear.  

Before Taking on New Parent PLUS Loans

Working with your loan servicer to consolidate and enroll in the ICR plan will protect borrowers with existing Parent PLUS loans. However, even if these steps are taken, *all new Parent PLUS loans are subject to the limited repayment options* under OBBB. This means that if you borrow a Parent PLUS Loan on or after July 1, 2026, even if you have previous PLUS Loans, the new Parent PLUS Loan features the new repayment rules.   


* Review your potential repayment amounts carefully and remember that additional years of borrowing may be necessary. 
* Use the Department of Education's Loan Simulator [ [link removed] ] to calculate payment amounts using your total projected PLUS Loan amount. (A tutorial video [ [link removed] ] is available to help navigate the loan simulator tool linked above.) 
* Consider the long-term impact on your family’s finances. 
* Remember that it is the legal responsibility of the parent to repay a Parent PLUS loan.

Additional Resources

For more details about changes to the Parent PLUS Loan, check out the Parent PLUS Loan Resource web page [ [link removed] ].

Download a digital flyer [ [link removed] ] with quick facts on this change.

Review OBBB Act updates and loan borrower scenarios [ [link removed] ] provided by Federal Student Aid.

________________________________________________________________________







Michigan Department of Lifelong Education, Advancement, and Potential

Michigan.gov/MiLEAP [ [link removed] ]

[email protected]














Connect with us:

facebook icon [ [link removed] ] X icon [ [link removed] ] youtube icon [ [link removed] ] instagram icon [ [link removed] ] linkedin icon [ [link removed] ] threads icon [ [link removed] ]

If you wish to no longer receive emails from us, 
please update your preferences here:
Manage Preferences [ [link removed]? ]  |  Delete Profile [ [link removed] ]

Need further assistance?
Contact Us [ [link removed] ]  |  Help [ [link removed] ]

________________________________________________________________________

Get personalized voter information on early voting and other topics at Michigan.gov/Vote [ [link removed] ].

________________________________________________________________________

This email was sent to [email protected] using govDelivery Communications Cloud on behalf of: Michigan Department of Lifelong Education, Advancement, and Potential · 707 17th St, Suite 4000 · Denver, CO 80202 GovDelivery logo [ [link removed] ]

body .abe-column-block { min-height: 5px; } table.gd_combo_table img {margin-left:10px; margin-right:10px;} table.gd_combo_table div.govd_image_display img, table.gd_combo_table td.gd_combo_image_cell img {margin-left:0px; margin-right:0px;} table.govd_hr {min-width: 100%;}