June 17, 2025
Federal student loan update from Cambridge Credit Counseling
Our endorsed partner offers information about potential changes to the student loan process.
If enacted, the current administration’s tax bill would make significant changes to the federal student loan process.
Cambridge Credit Counseling believes the following changes may be forthcoming:
1. The SAVE plan will be terminated, and ICR, PAYE, and the newer version of IBR may also be terminated. If you are already enrolled in everything but SAVE, you should be fine. If you are currently in SAVE, though, you should apply for IBR now.
2. Payments made though any income-driven plan toward PSLF will still count, although you may need to change your repayment plan to the older version of IBR.
3. If you have a Parent PLUS loan, a consolidation loan that includes a Parent PLUS loan, or even if you’ve already used the double consolidation loophole for your Parent PLUS loans, you should consider applying for the ICR immediately. You must be in repayment on the ICR plan the day before the budget bill is signed to remain eligible for any future IDR plans.
If you are not enrolled in the ICR plan on the day before enactment and have Parent PLUS loans as described above, you will potentially lose access to all income-driven plans.
If you have one or more unconsolidated Parent PLUS loans, you can submit a consolidation application immediately by selecting ICR as your repayment plan. Click the following link for more information - https://studentaid.gov/loan-consolidation
If you have already consolidated one or more Parent PLUS loans (or even if you’ve already used the double consolidation loophole) or you’ve begun a consolidation that hasn’t been processed yet, you can apply to change from your current income-driven plan to the ICR plan immediately before the bill passes. Click the following link for more information - https://studentaid.gov/idr
Click here for more information about student loan counseling or contact a student loan counselor toll-free at 888-254-9827.