How to Prepare for the Parent PLUS Cliff in 2025

Key Points:

• Starting in 2025, the Department of Education will close a loophole that allows parent borrowers to find relief through income-driven repayment (IDR) and other programs.
• Once the “Parent PLUS cliff” hits, borrowers will experience reduced relief and potentially higher monthly payments.
• Parents with Parent PLUS Loans should start planning for this change now by considering refinancing, exploring alternative repayment options, and creating a financial strategy to handle the potential increased burden.

Hot Take for Physical Therapists:

The upcoming changes to income-driven repayment programs for Parent PLUS Loans will have implications for physical therapists who have parents or grandparents who took out loans for their education. PTs should be aware of these changes and consider discussing financial strategies and alternatives with their parents or grandparents to prepare for the potential impact on their family finances.

Reference Article https://www.studentloanplanner.com/parent-plus-student-loan-cliff-2025/