Summary
Federal student loan borrowers, especially those with Parent PLUS loans, face important changes. The Illinois Attorney General has warned that if these loans are not consolidated by April 1, borrowers may miss out on flexible repayment plans and loan forgiveness options.
Key Facts
- Parent PLUS loans are a type of federal student loan for parents to help pay their child's college expenses.
- Illinois Attorney General Kwame Raoul advises borrowers to consolidate Parent PLUS loans by April 1.
- Consolidation allows access to income-driven repayment plans, which adjust payments based on income.
- Missing the deadline could mean higher payments and ineligibility for loan forgiveness programs.
- Recent law changes mean new Parent PLUS loans after July 1 will have limited repayment options.
- Borrowers need to make qualifying payments to possibly get forgiveness through the Public Service Loan Forgiveness program.
- Consolidated loans enable enrollment in the Income-Contingent Repayment Plan until July 2028.
- Making a payment on an income-driven plan from July 2025 to July 2028 may open future eligibility for the Income-Based Repayment Plan.
