I just read something interesting today in the Debt Free Vets fb group that may affect upcoming grads I felt you all should know.
The group admin/veternarian who is also a loan planning professional stated that with the new regulations and the BBB, advice is changing about loan consolidation. In the past, people planning to go the forgiveness route would often be advised to consolidate their loans right after graduation in order to waive the 6 month grade period and get started on loan repayment (since payment is often zero because you made no money as a fourth year) so forgiveness comes 6 months sooner. And so you could claim no income (because you hadn’t started working yet) and make your payments 0 for the first year. Or there may have been other reasons to consolidate, like to make an HPSL loan eligible to be paid under income based programs. HOWEVER, a consolidation loan is technically considered a “new” loan, so it’s likely that by consolidating, you’d probably be considered to have loans after the July 1 2026 BBB cutoff (since it’s unlikely your consolidation would be processed fast enough to squeak in under the deadline after graduation), and that “new” consolidation loan would only be eligible for RAP or standard repayment, not IBR. And for most new grad vets (though not all), IBR is often going to have lower total costs because it’s a shorter repayment term compared to RAP’s 30 years.
All that to say, if you read online advice that said a new grad should consolidate after graduation, that may no longer be a good decision.