The AVMA and VIN Foundation are closely monitoring recent legislative changes regarding federal student loans and are working hard to deliver the resources you need to make informed decisions about your student loan repayment strategy.
Class of 2026 borrowers
During this time of change, it is especially important to review and clarify some of the prior recommendations for the effective management of student loans. In recent years, the VIN Foundation has encouraged new graduates to apply for a federal Direct Consolidation Loan (an option that allows borrowers to pay off multiple federal loans with one, new federal loan) after graduation. However, for the 2026 graduating class federal loan consolidation is not recommended.
URGENT: Class of 2026, do NOT consolidate your student loans
Given the current backlog of federal student loan applications, consolidation requests submitted now or after graduation will likely not be processed and received before the new rules go into effect on July 1, 2026. On and after this date, borrowers who receive a new Direct Loan (including a Direct Consolidation Loan) will be limited to the new Repayment Assistance Plan (RAP) and the Tiered Standard Plan option.
Repayment Assistance Plan (RAP) Rules Finalized: Major unexpected change coming
Borrowers who do not receive a new federal Direct Loan on or before July 1, 2026
Borrowers who do not receive a new federal Direct Loan on or after July 1, 2026, retain eligibility for “legacy” income-driven plans (Income-Based Repayment (IBR), Pay As You Earn (PAYE) available until July 2028, and Income-Contingent Repayment (ICR) available until July 2028).
While either RAP or the Tiered Standard Plan may meet your repayment needs, in general, access to more repayment options may be more advantageous for all federal borrowers.
Situations vary
Selecting a student loan repayment plan isn’t one-size-fits-all. There are many factors, both personal and professional, that should inform your strategy. Consolidation should, for most, not be part of it for the class of 2026. Rare exceptions to this general guidance may exist.
Got questions? Get help.
The VIN Foundation student debt team is happy to help evaluate your student loans and repayment options.
For more information, get personalized help from the VIN Foundation Student Debt Education Team and the federal consolidation resource on AVMA’s website.
Please let us know if you have any questions, and as always your feedback is welcome.
VIN Foundation
The VIN Foundation was founded by members of the Veterinary Information Network (VIN) in 2005. VIN is an online community of veterinarians and veterinary students with over 115,000 members worldwide. The VIN Foundation’s charitable efforts are centered around the belief that a healthy veterinary profession is essential for healthy animal and human communities.