submitted by vachta@augsburg.edu
If you currently hold Parent PLUS student loans, there is a critical deadline this spring that could permanently impact your repayment plan and forgiveness eligibility. As an employee at Augsburg University, you have access to Savi to help you navigate the sweeping changes reshaping the federal student loan system
What’s happening?
New federal rules under the One Big Beautiful Bill (OBBB) are changing how Parent PLUS loans are managed starting July 1, 2026. This is a “hard cutoff” that could permanently change your financial future.
If you do not consolidate your Parent PLUS loans before the deadline, you risk permanently losing access to:
● Income-Driven Repayment (IDR) plans, which can keep your monthly payments affordable based on what you earn.
● Forgiveness pathways, including Public Service Loan Forgiveness (PSLF).
The Deadline: April 1, 2026
While the legal cutoff is July 1, the consolidation process must be fully completed and disbursed by that date, not just started. Because federal processing typically takes 60-90 days, we strongly recommend you submit your consolidation application no later than April 1, 2026.
How Savi Helps
The rules for Parent PLUS borrowers are complex, but your path forward doesn’t have to be. Savi is here to help you:
● Analyze your loans to see if consolidation is necessary.
● Provide step-by-step help to complete consolidation before the deadline.
● Lock in your lowest monthly payment plan after consolidating.