ED shifting federal student loans to Treasury amid dismantle
Key Questions
What is the impact of shifting federal student loans to Treasury?
The phased $1.7T handover threatens access to PSLF and IDR options for many borrowers. It follows the end of Grad PLUS and caps on Parent PLUS under recent legislation.
What options remain for Parent PLUS borrowers after June 30?
Those who missed the June 30 consolidation deadline permanently lose PSLF access. New rules also cut off affordable repayment and forgiveness paths for these loans.
How does the double-consolidation loophole affect PLUS loans?
The double-consolidation SAVE loophole for PLUS loans remains active despite broader restrictions. Borrowers may still use it to regain access to certain forgiveness programs.
Phased $1.7T handover threatens PSLF/IDR; OBBBA Grad PLUS elim/Parent PLUS caps; June 30 consol rush has passed—those who didn't consolidate permanently lose PSLF access. Double-consolidation SAVE loophole for PLUS loans remains active. GAO expands investigation into Trump Admin efforts to dismantle ED, adding oversight pressure. Renewed push from lawmakers (Warren et al.) to force ED to process existing relief and halt Treasury transfer. Multiple articles reinforce the urgent June 30 deadline for Parent PLUS consolidation (now expired). A new article (July 7) confirms that the July 1 cutoff for Parent PLUS loans from affordable repayment and forgiveness options is now in effect, affecting teachers who hold these loans for their children. A new article (1DLkXwnJ) further highlights that Parent PLUS borrowers lose IDR access under OBBBA, a devastating obscure policy for K-12 teachers.