Parent PLUS Loophole Closing and Retirement Income Math

Student Loan Planner

The clock is ticking on the double consolidation loophole for Parent PLUS Loans, which closes in July 2025. Learn what this change means, why borrowers must act quickly, and how to make the most of the remaining time. We’ll tackle the big questions: Should you file taxes jointly or separately? How do Medicare penalties and student loan repayments overlap? And what strategies can help you maximize income-driven repayment (IDR) plans before the loophole disappears? Jared Costigan, CFP®, CSLP®, a financial planner with the SLP Wealth team, shares expert advice on preserving retirement savings, aligning Social Security with loan repayment, and leveraging Public Service Loan Forgiveness (PSLF).

Key moments:

(05:16) Parent PLUS debt surged 63% from 2015 to 2022 as the cost of college climbs

(9:19) The double consolidation loophole could save you from paying 20% of your retirement income

(19:38) Who benefits most from a double consolidation? Borrowers with balances nearing or exceeding their income

(27:56) Income planning ties Social Security and loans to retirement timing — don’t overlook it

(37:32) Filing taxes separately can lower loan payments but may raise Medicare costs

Links mentioned:

• Financially Free Physicians podcast

• Department of Education Parent PLUS Loans

• Parent PLUS Double Consolidation Loophole Guide for 2025

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