Parents who borrowed federal PLUS loans to help pay for their children's college education are facing an approaching deadline that could affect their repayment options.

Under new federal regulations, parent PLUS loans must be consolidated into a new loan by June 30 for borrowers to maintain access to affordable payment plans. The consolidation process allows parents to potentially qualify for income-driven repayment options that were previously unavailable for PLUS loans.

However, education finance experts recommend that parents begin the consolidation process well before the June 30 cutoff date to allow sufficient time for processing. The loan servicing system typically requires several weeks to complete consolidation applications, meaning parents should ideally submit their paperwork by early June.

Parent PLUS loans, which allow parents to borrow up to the full cost of attendance minus other financial aid, have historically offered fewer repayment flexibility options compared to student loans. The consolidation opportunity represents a significant change for many families struggling with education debt.

Families who miss the deadline may find themselves locked into standard repayment terms that could result in higher monthly payments compared to income-driven alternatives.