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Terry Savage: Parent Plus SOS
Borrowers may lose access to income-driven repayment plans that can cut monthly payments by up to 30%, experts said.
- Parents with federal Parent PLUS college loans face a July 1 deadline to access reduced payment options before provisions in the One Big Beautiful Bill Act of 2025 terminate these programs.
- To qualify for reduced payments before the cutoff, borrowers must consolidate all Parent PLUS loans by logging into the federal student aid website and selecting the Income-Contingent Repayment plan.
- Investment adviser Terry Savage notes that consolidating loans is the only way to avoid the July 1 cutoff, as the Income-Contingent Repayment plan uses a different formula to lower monthly payments by as much as 50 percent.
- Borrowers who successfully switch to the Income-Contingent Repayment plan may see monthly bills drop significantly, with remaining balances potentially forgiven after 25 years, though this could be taxable.
- Time is running out for eligible parents to act, as the government requires all applications to be fully processed by the July 1 deadline, and applicants should check their status immediately to avoid delays.
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17 Articles
17 Articles
Mason City Globe Gazette+16 Reposted by 16 other sources
Terry Savage: Parent Plus SOS
The deadline is July 1, after which reduced payment options disappear because of provisions in the One Big Beautiful Bill Act of 2025.. If you miss the July 1 deadline, you will be forced into a standard 10- year repayment…
Coverage Details
Total News Sources17
Leaning Left1Leaning Right0Center16Last UpdatedBias Distribution94% Center
Bias Distribution
- 94% of the sources are Center
94% Center
C 94%
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