Student Loan Forgiveness Tightened as Trump Pushes New Bill

Millions of Americans with Parent PLUS loans face potential hurdles in accessing student loan forgiveness, according to Forbes. The recently passed “Big, Beautiful Bill” fundamentally revamped the federal student loan landscape, bidding farewell to several income-driven repayment (IDR) plans while establishing stricter regulations for Parent PLUS borrowers. Previously, these borrowers could qualify for the Income-Contingent Repayment (ICR) plan, enabling loan forgiveness after 25 years through federal Direct Consolidation Loans. However, under the new legislation, the ICR will be eliminated by July 1, 2028, and Parent PLUS borrowers are excluded from the newly introduced Repayment Assistance Plan (RAP) that offers forgiveness after 30 years. The only remaining option for forgiveness is the Income-Based Repayment (IBR) plan, but borrowers must consolidate their loans before the July 1, 2026 deadline and enroll in an IDR plan by July 1, 2028. The National Consumer Law Center (NCLC) emphasizes that timely action is crucial to avoid being shut out from income-driven options and managing loan payments effectively.