How long do you have to pay off parent PLUS loans?

You have between 10 and 25 years to pay off your parent PLUS loans, depending on your repayment plan. However, you may extend your term up to 30 years by consolidating your loans, resulting in a lower monthly payment but more interest paid over time.

Can I transfer a parent PLUS loan to my child?

The only way to transfer a parent PLUS loan to your child is by refinancing the loan with a private lender. Currently, parents can’t transfer their parent PLUS loan to their child within the federal loan system.

Can you pay back a parent PLUS loan early?

Yes, you can pay back a parent PLUS loan early without penalties. For example, you can decide to make multiple parent PLUS loan payments per month, make one payment per month at an increased amount or make a lump-sum payoff to get out of student debt faster.

Are parent PLUS loans worth it?

Parent PLUS loans can be useful if your child has maxed out their student aid and has no other alternative to lower the cost of their education (e.g., attending a more affordable school). However, parent PLUS loans can derail your own life goals, like saving for retirement, paying off your mortgage or living the lifestyle you’ve always imagined for yourself. Before taking out a loan, understand the extra cost you’ll pay in interest and make a plan for repayment so you’re not taken by surprise.

How to pay off parent PLUS loans

Written by

Jennifer Calonia,

Edited by

Pippin Wilbers

Published on December 23, 2024 | 4 min read

Bankrate is always editorially independent. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . Our is to ensure everything we publish is objective, accurate and trustworthy.

A mother and daughter with their arms around each other

Key takeaways

The repayment period for Parent PLUS loans starts right after you receive the final disbursement of the loan while your student is in school.
Repayment terms usually range from 10 to 25 years.
To qualify for the Income-Contingent Repayment Plan, you must consolidate your Parent PLUS loan.
If you can’t pay your Parent PLUS loan, immediately contact your loan servicer to discuss your options.

About 3.6 million families have outstanding parent PLUS loans, according to Federal Student Aid data. The average debt burden among borrowers is about $30,600, with many still paying back their loans 20 years after their child has finished school. They also have limited repayment options and fewer protections compared to other Direct Loan types. However, borrowers still have plenty of options for tackling these payments.

3 parents explain how they’re covering rising education costs

You could use a 529 plan to repay up to $10,000 of your child’s student loans — or even a Parent PLUS loan.

Best for: Multiple loans
Biggest advantage: Simplifies payments
Biggest drawback: Longer repayment period

If you’ve borrowed more than one parent PLUS loan for your child over the years or taken out loans for multiple children, loan consolidation might be elpful. This free repayment strategy streamlines your repayment plan by combining multiple parent PLUS loans into a new Direct Consolidation Loan. After you consolidate Parent PLUS Loans, you’ll have one student loan bill and payment due each month. Your fixed interest rate will be averaged based on your loans’ original rates.

This option can also help if you’re struggling with your monthly payments. A Direct Consolidation Loan has repayment terms of up to 30 years, so stretching out your repayment term will lower your monthly payments — though you will pay more interest overall.

Student loan refinancing

Best for: Families with good credit
Biggest advantage: Potentially better interest rates
Biggest drawback: Will lose federal loan benefits

Student loan refinancing is a common way to potentially reduce your interest rate, gain more favorable terms and lower your monthly payment. Only private lenders offer refinancing, so interest rates, repayment options, terms and benefits vary by company. This also means you’ll no longer be eligible for federal student loan benefits, like flexible repayment plans and extended forbearance options if you’re experiencing financial hardship.

When applying for a parent PLUS loan refinance, the lender will conduct a credit check and ask you to provide information regarding your income and other financial obligations. This is to ensure that you can repay the refinance loan. Your credit score will largely determine your interest rate, so the better your credit, the cheaper your loan. If you have exceptional credit, your interest rate could be significantly lower than the federal government originally offered you.

Income-Contingent Repayment Plan

Best for: Lower-income households
Biggest advantage: Manageable repayment based on income
Biggest drawback: Must first consolidate loans

If you need lower parent PLUS loan payments and want to remain within the federal Direct Loan system, consider an Income-Contingent Repayment (ICR) Plan.

Under an ICR Plan, your monthly payment is based on 20 percent of your discretionary income or an income-adjustment amount based on what you’d pay over 12 years under a fixed payment plan — whichever is less. You’ll need to recertify your income and family size annually, which can increase or decrease your monthly payments.

However, you can’t repay a parent PLUS loan under the ICR Plan. To be eligible for the ICR Plan, you must first consolidate parent PLUS loans into a Direct Consolidation Loan. The newly consolidated loan can then be paid back under the ICR Plan.

A unique benefit is that any remaining debt at the end of the repayment period will be forgiven.

Public Service Loan Forgiveness

Best for: Public sector employees
Biggest advantage: Forgiveness of loans after 120 payments
Biggest drawback: Strict qualifications

Parents who work in the public sector might be eligible for Public Service Loan Forgiveness (PSLF). The PSLF program requires borrowers with eligible Direct Loans to work full time at a government or nonprofit organization during repayment.

Borrowers must make 120 payments on an income-driven repayment plan to complete Public Service Loan Forgiveness. Parents will need to consolidate their parent PLUS loans into a Direct Consolidation Loan and enroll in the Income-Contingent Repayment Plan to qualify. After 120 qualifying payments toward your loan, the remaining student loan balance can be forgiven.

Standard repayment

Best for: Families that can afford to repay a loan in full
Biggest advantage: Fixed interest over the course of the loan
Biggest drawback: Little flexibility

Parent PLUS loans have a standard repayment plan spread over 10 years. These plans have a fixed interest rate that does not change over the loan’s lifespan, even if market interest rates rise.

These plans do not offer any form of debt forgiveness, so there is little flexibility for those who need a plan tied to their income. However, the standard repayment plan typically has favorable rates and a shorter repayment period for families that can afford it.

Why you should avoid defaulting on a parent PLUS loan

Student loan default — failing to repay your loan as promised — has serious consequences, such as harm to your credit, losing access to additional federal aid and potential wage garnishment. So, it’s unwise to never pay your student loans. If you’re having trouble repaying a Parent PLUS loan, contact your loan servicer to enroll in forbearance or deferment. Those options temporarily halt your loan payments.

Bottom line

Parent PLUS loans are a way for families to access more funds to cover the growing costs of higher education. However, with higher rates than other federal student loans, they can be tough on families’ budgets. Ideally, you should decide which repayment plan fits your finances before taking out a parent PLUS loan. But if you’re struggling now, you can explore options like refinancing.

Frequently asked questions

You have between 10 and 25 years to pay off your parent PLUS loans, depending on your repayment plan. However, you may extend your term up to 30 years by consolidating your loans, resulting in a lower monthly payment but more interest paid over time.
The only way to transfer a parent PLUS loan to your child is by refinancing the loan with a private lender. Currently, parents can’t transfer their parent PLUS loan to their child within the federal loan system.
Yes, you can pay back a parent PLUS loan early without penalties. For example, you can decide to make multiple parent PLUS loan payments per month, make one payment per month at an increased amount or make a lump-sum payoff to get out of student debt faster.
Parent PLUS loans can be useful if your child has maxed out their student aid and has no other alternative to lower the cost of their education (e.g., attending a more affordable school). However, parent PLUS loans can derail your own life goals, like saving for retirement, paying off your mortgage or living the lifestyle you’ve always imagined for yourself. Before taking out a loan, understand the extra cost you’ll pay in interest and make a plan for repayment so you’re not taken by surprise.