What is the "New Grad Student Loan Playbook" webinar about?
The “New Grad Student Loan Playbook” is an annual webinar by VIN and VIN Foundation aimed at providing information and guidance to graduating veterinarians regarding their student loans and repayment options.
With the rapidly changing student loan landscape, each graduating class faces new and different challenges. Some of the most consequential mistakes happen during the initial phase of student loan repayment.
The most recent webinar, held on May 7th, 2025, covered topics such as whether to file a 2024 tax return, the implications of consolidating loans, choosing the right repayment plan, and whether using a signing bonus to pay down loans during the grace period is a good idea.
During the recent 2025 New Grad Student Loan Playbook webinar there were many questions.
Below are the questions and answers focused on Student Loan Consolidation:
Q: What does it mean to consolidate your loans?
A: Replacing one or more loans with a single new loan. For student loans, consolidating means applying for a Direct Consolidation Loan to replace some or all eligible federal student loans with a new loan, named a Direct Consolidation Loan.
Q: I thought consolidating loans could potentially lower your interest rate. Is that not the case?
A: For a Direct Consolidation Loan, the resulting interest rate is a weighted average of all the loans included in the consolidation rounded up to the nearest 1/8th of 1%. After your Direct Consolidation Loan is in repayment, you can enroll in automatic monthly payments (autopay) to receive a 0.25% interest rate discount.
To potentially receive a lower interest rate beyond the discounted federal student loan interest rate, you might consider a private consolidation or refinance of your student loans. A refinance is a type of loan consolidation that is often associated with a lower interest rate or better terms, such as when you refinance your mortgage to receive a lower interest rate or more favorable terms. Unfortunately, when you consolidate or refinance your federal student loans with a private loan, you no longer receive any of the benefits or terms provided by your federal student loans.
Q: Should you sign up for a repayment plan before or after you consolidate your loans?
A: If you choose to apply for a federal Direct Consolidation Loan, you will apply for your repayment plan during the consolidation application process.
Q: When should we be consolidating our loans and choosing an income-based repayment plan?
A: If you choose to apply for a federal Direct Consolidation Loan, in most cases, you should submit your application as soon as your loans allow (when they enter their grace period) and choose the “do not delay processing” option. If you are consolidating only HPSL, LDS or Perkins loans to make them eligible for an IDR plan when your Direct Loans finish their grace period, then you might delay processing or submit your consolidation application for 30-60 days before your Direct Loan grace period ends. This can be challenging considering you’re going to be learning how to practice veterinary medicine at the same time 🙂 Consider posting on the VIN Foundation Student Debt message board area for guidance.
Q: Do you have to consolidate to use income based repayment?
A: No. Income-Driven Repayment (IDR) plans are available for any federal Direct Loans. However, consolidation can help to make non-Direct federal loan balances eligible for IDR. For example, adding a Health Professions Student Loan to a Direct Consolidation Loan converts that balance to a type of Direct Loan that is eligible for IDR. If you have only Direct Loans, then all of your balance is already eligible for IDR. You can still choose to consolidate your Direct Loans if it will help you, but it’s not necessary. If you choose not to consolidate non-Direct loan types (HPSL, LDS, or Perkins loans) that balance would be repaid using a fixed 10 year repayment plan.
Q: Does consolidation automatically end your grace period in the meantime and you are put on standard 10 year plan repayment while waiting for approval for an IDR plan?
A: No. When you include loans with a grace period in your Direct Consolidation Loan application, you are able to select how long you would like to delay the processing of that application up to the length of your remaining grace period. To end your grace period as soon as the application is processed, select the “Do not delay process” option.
If you included loans in your consolidation application that are in repayment, you either need to continue making the minimum payments due until the consolidation is completed OR you can request a forbearance while the consolidation application processes. Consolidation applications can take 30-60 days. Sometimes those loans will automatically enter a forbearance while the consolidation processes, but do not count on that. Reach out to the loan servicer(s) for those loans already in repayment and confirm or request a forbearance while the consolidation application is in process. Any loans you include in the consolidation that are in their grace period will not require payments while the application processes.
Q: Do you have to consolidate for PSLF?
A: No. Public Service Loan Forgiveness (PSLF) is available to any borrower with federal Direct Loans who repay those loans with an PSLF-eligible plan (e.g. IDR plan) while meeting the PSLF employment requirements for a qualifying organization(s).
However, consolidation can help to make non-Direct federal loan balances eligible for PSLF. For example, adding a Health Professions Student Loan to a Direct Consolidation Loan converts that balance to a type of Direct Loan that is eligible for PSLF. If you have only Direct Loans, then all of your balance is already eligible for PSLF as long as you meet the remaining PSLF requirements. You can still choose to consolidate your Direct Loans if it will help you receive PSLF credit sooner, but it’s not necessary.
Have more questions? Post a comment below or email [email protected].
Dr. Tony Bartels graduated in 2012 from the Colorado State University combined MBA/DVM program and is an employee of the Veterinary Information Network (VIN) and a VIN Foundation Board member. He and his wife have more than $400,000 in veterinary-school debt that they manage using federal income-driven repayment plans. By necessity (and now obsession), his professional activities include researching and speaking on veterinary-student debt, providing guidance to colleagues on loan-repayment strategies and contributing to VIN Foundation initiatives.
