DCWP Issues Consumer Alert: NYC Parents Face March Deadline to Lock in Student Loan Repayment Relief Before Federal Window Permanently Closes
March 13, 2026
DCWP offers free, confidential and personalized guidance virtually or in person to help lower student loan payments
NEW YORK, NY – The New York City Department of Consumer and Worker Protection (DCWP) today issued a consumer alert to warn an estimated 119,000 New Yorkers with Parent PLUS Loans of an urgent deadline as the federal government retreats from protecting student loan borrowers and offering repayment assistance. Parents who borrowed a federal Parent PLUS loan to help pay for their child’s education should act by March 31, 2026 to maintain access to more affordable repayment options, such as income-driven repayment (IDR) plans and Public Service Loan Forgiveness (PSLF).
“Too many parents don't know that their kids’ student loans may be eligible for relief,” said DCWP Commissioner Sam Levine. “New Yorkers with Parent PLUS loans have fewer than three weeks to act, and we want every parent borrower to know there's a clear path forward — and free tools to help them take it before time runs out.”
Important Information for Parent PLUS borrowers
Federal Parent PLUS loans are loans borrowed to finance a dependent’s education. Due to new restrictions imposed by the One Big Beautiful Bill Act (enacted in July 2025), borrowers are ONLY eligible for IDR plans or PSLF — programs that can dramatically lower monthly loan payments and provide forgiveness — if they consolidate their Parent PLUS loans into a Direct Consolidation loan. This is a process where a new loan is originated to pay off the old Parent PLUS loan. Parent borrowers must start the consolidation process by March 31, 2026 to ensure they can benefit from IDR and PSLF programs.
To receive personalized and expert support with student loan consolidation, borrowers can use the City’s free and confidential student loan support programs at NYC.gov/StudentLoans before the March 31 deadline. DCWP’s NYC Financial Empowerment Centers can also help New Yorkers to work with a financial counselor in person or by phone to manage student loans along with other expenses and debts by visiting nyc.gov/TalkMoney or calling 311 and saying “Financial Counseling.”
Remember to be aware of Student Loan Scams. Borrowers NEVER have to pay for free federal and state programs, including loan forgiveness. Borrowers who believe they are a victim of a scam should visit nyc.gov/Consumers to file a complaint.
Public Service Loan Forgiveness (PSLF)
Borrowers who have worked for a government or 501c3 organization may be eligible for federal loan cancellation under the Public Service Loan Forgiveness (PSLF) program. Depending on their profession, borrowers may also qualify for state repayment assistance programs. Interested borrowers should review DCWP’s Important Notice for Employees with Student Loan Debt to see if they are eligible for programs and how to apply.
The PSLF Program forgives the remaining balance on a borrower’s Direct Loans after they have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
Income-driven repayment plan
An IDR plan offers borrowers options to set their monthly loan payments at an amount that is based on income and family size. Depending on income, payments could be as low as $0 a month. If a borrower does not qualify for these options, they may qualify for a graduated repayment plan that allows them to make smaller initial payments that increase over time. This graduated repayment plan could extend their repayment period and increase the total amount paid in loan interest. Some repayment plans, like graduated repayment, do not qualify for certain debt cancellation programs, like IDR or Public Service Loan Forgiveness (PSLF).
To see the various payment plans and options, borrowers should visit StudentAid.gov and log in to the Loan Simulator tool using their FSA ID.
Additional Financial Resources:
Counselors at the NYC Financial Empowerment Centers can also help New Yorkers understand their banking options and find the account that best meets their needs manage student loans along with other expenses and debts. The Centers provide free, one-on-one professional financial counseling to help New Yorkers manage their money, establish, or improve their credit, set up a spending plan, open a safe and affordable bank account, contact their lenders about debt, develop a strategy to reduce debt or lower payments, and more. Since 2008, NYC Financial Empowerment Centers have helped tens of thousands of New Yorkers improve their credit, reduce their debt by more than $127 million, and increase their savings by more than $14 million through free one-on-one financial counseling services.
New Yorkers can book a free and confidential appointment with a professional financial counselor by visiting nyc.gov/TalkMoney or calling 311 and saying “Financial Counseling.” Services are available in person or by phone and in multiple languages.
The NYC Department of Consumer and Worker Protection (DCWP) is the nation’s leading municipal enforcement agency charged with delivering economic justice. DCWP leverages its authority to bring New Yorkers real economic relief and protect them from predatory, deceptive, and unfair practices that violate their rights as consumers and workers. This includes pioneering cutting-edge protections, such as the City’s Consumer Protection Law, Protected Time Off Law, Fair Workweek Law, and Delivery Worker Laws, including the Minimum Pay Rate for delivery workers. Through licensing more than 45,000 businesses in over 45 industries, DCWP ensures fair competition and a level playing field for responsible small businesses that are integral to New York City’s vibrant communities. DCWP also provides essential services such as free tax preparation and financial counseling to ensure New Yorkers keep more of what they earn and can plan for their futures. DCWP is committed to making sure New York City is a fairer, more affordable place to live. For more information about DCWP and its work, call 311 or visit DCWP at nyc.gov/dcwp, sign up for its newsletter, or follow on its social media sites, X, Facebook, Instagram, and YouTube.
Media Contact:
Stephany Vasquez Sanchez
Department of Consumer and Worker Protection
(212) 436-0042
press@dcwp.nyc.gov