Attorney General Kwame Raoul urged Parent PLUS federal student loan borrowers on Mar. 24 to consider consolidating their loans by April 1 due to upcoming changes in federal law that will limit repayment options for unconsolidated loans.
The alert is significant because, starting July 1, parent borrowers with unconsolidated Parent PLUS loans or those who take out new loans after this date will have fewer repayment plan choices and may become ineligible for income-driven repayment plans. This could also prevent most from qualifying for Public Service Loan Forgiveness.
“I encourage Parent PLUS borrowers to learn about your loans and to consider consolidating any unconsolidated Parent PLUS loans by April 1 to have access to an income-driven repayment plan,” Raoul said. “An income-driven repayment plan can be the most affordable choice for many student loan borrowers, and enrollment is almost always required for Public Service Loan Forgiveness. Find out more about what options are best for you by logging into your Federal Student Aid account.”
According to the official website, the Illinois Attorney General advocated for vulnerable groups including workers, immigrants and seniors according to the official website. The office also handled thousands of consumer complaints each year according to the official website, aimed at protecting consumers, promoting safer communities, and advocating on environmental and rights issues according to the official website.
Raoul’s office advises that only consolidated Parent PLUS loans are eligible for income-driven plans such as Income-Contingent Repayment Plan (ICR). While ICR will phase out by July 1, 2028, making a payment between July 5, 2025 and July 30, 2028 allows eligibility for the Income-Based Repayment Plan moving forward. Borrowers should review their loan status via their servicer or studentaid.gov account dashboard.
The Attorney General’s guidance includes several tips: unpaid interest from consolidation becomes part of a new principal balance; consolidating with non-Parent PLUS loans resets forgiveness progress; but combining multiple Parent PLUS loans may benefit those seeking Public Service Loan Forgiveness under certain conditions if employment is certified before consolidation.
Raoul reminds all student loan holders not to respond to unsolicited offers of debt relief or give out FSA credentials. Services like consolidation applications or changing repayment plans can be accessed directly through studentaid.gov without fees. Borrowers needing assistance or wishing to report scams can contact the Student Loan Helpline at 1-800-455-2456 or email StudentLoans@ilag.gov.
The Illinois Attorney General extended its advocacy efforts across Illinois according to the official website, partnered with law enforcement agencies on crime victim support and open government initiatives according to the official website, and offered services such as complaint filing related to consumer fraud and civil rights matters according to the official website.
