What is happening with Parent PLUS borrowers and income-driven repayment plans?
Parent PLUS borrowers who are currently enrolled in an income-driven repayment plan may be at risk of losing this option if they do not take action soon. The U.S. Department of Education is implementing changes that could impact these borrowers, and it is important for them to understand what steps they need to take to maintain their current repayment plan.
What changes are being made?
The Department of Education is transitioning all Parent PLUS borrowers who are currently enrolled in an income-driven repayment plan to a new system called the Income-Contingent Repayment (ICR) plan. This change will affect how borrowers calculate their monthly payments and could potentially result in higher payments for some borrowers.
What do Parent PLUS borrowers need to do?
Parent PLUS borrowers who wish to maintain their current income-driven repayment plan must take action before the transition to the ICR plan takes place. They will need to submit a recertification application to the Department of Education to confirm their eligibility for the plan.
What are the consequences of not acting?
If Parent PLUS borrowers do not submit a recertification application before the deadline, they will be automatically transitioned to the ICR plan. This could result in higher monthly payments and potentially make repayment more challenging for some borrowers.
How can borrowers get more information or assistance?
Borrowers who have questions or need assistance with the recertification process can contact their loan servicer or the Department of Education directly. It is important for borrowers to act quickly to ensure they can maintain their current income-driven repayment plan and avoid any negative consequences.
