Parent PLUS loans are federal loans made to parents to help pay for their children’s college education. There are currently over 3.6 million people with Parent PLUS loans. A significant portion of today’s parent borrowers are very low-income and are struggling with repayment. Currently, they can access lower payments to help avoid distress and default by consolidating and repaying through the Income Contingent Repayment (ICR) plan, which sets payments based on income. But proposals to streamline student loan repayment, including the College Cost Reduction Act and the Streamlining Accountability and Value in Education for Students Act, would eliminate the ICR plan and exclude Parent PLUS borrowers from any affordable repayment options—leaving millions of low-income, older adults with student loan debt at high risk of financial distress and default.
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