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 those with unconsolidated loans.
The announcement is important because after July 1, parent borrowers with unconsolidated Parent PLUS loans or those who take out new loans will no longer be eligible for income-driven repayment plans and could lose access to Public Service Loan Forgiveness. This could impact the affordability of payments and the potential for debt forgiveness for many families.
“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.”
Only consolidated Parent PLUS loans are eligible for certain repayment plans such as the Income-Contingent Repayment Plan, which will phase out by July 1, 2028. Borrowers who make a payment on an income-driven plan between July 5, 2025 and July 30, 2028 may then enroll in the Income-Based Repayment Plan. Raoul’s office advised that consolidations can take several months and should be completed before April 1 to ensure eligibility under current rules.
Raoul also warned against scams targeting student loan holders, reminding them not to share their Federal Student Aid ID or pay third parties for services that are available free through official channels. Borrowers can contact his office’s Student Loan Helpline or file complaints if they suspect fraud.
The Illinois Attorney General has advocated for vulnerable groups including workers, immigrants, and seniors according to its official website. The office handles thousands of consumer complaints each year according to its official website and aims to protect consumers while promoting safer communities and advocating on environmental issues according to its official website. These efforts extend across Illinois according to its official website, include partnerships with law enforcement supporting crime victims according to its official website, and offer services such as complaint filing related to consumer fraud or civil rights matters according to its official website.
