Affordable PLUS Repayment Options for Parents Act of 2025

This bill would let parents who took out federal Parent PLUS loans make payments based on their income. Right now, most Parent PLUS borrowers can only use standard, graduated, or extended plans, and usually must first consolidate to get an income-contingent plan. The bill removes those limits and allows Parent PLUS borrowers to use income-contingent repayment (ICR) or income-based repayment (IBR) directly, which can lower monthly payments when income is low.

If it becomes law, the change would start right away. It would cover people who already have Parent PLUS loans, as well as future borrowers, including certain consolidation loans that paid off a Parent PLUS loan and are repaid under ICR or IBR .

• Who is affected: Parents with federal Parent PLUS loans, including some who consolidated those loans.
• What changes: They could choose ICR or IBR plans, so payments are tied to what they earn, without needing to consolidate first for ICR.
• When: As soon as the bill becomes law, for current and new borrowers .