Affordable PLUS Repayment Options for Parents Act of 2025

This legislation seeks to expand repayment options for parents with federal student loans. It specifically amends the Higher Education Act of 1965 to allow borrowers of Federal Direct PLUS loans , made on behalf of dependent students, and certain related consolidation loans to access income-contingent repayment (ICR) plans. This change removes existing statutory language that currently excludes these specific loan types from ICR eligibility. Furthermore, the bill also makes income-based repayment (IBR) plans available to these Parent PLUS loan borrowers. It achieves this by striking provisions that previously prevented Parent PLUS loans and certain consolidation loans from qualifying for IBR, including modifications to the definition of "partial financial hardship." These amendments will take effect upon enactment, applying to all eligible borrowers with outstanding balances on or after that date, thereby offering more flexible and affordable repayment solutions.