How are our financial behaviors shaped and molded? What type of money personality do you have and how does it affect your habits and attitudes? In our latest episode of Making Cents of Money, we take a look at several, FREE online tools available to you!

Resources mentioned this episode:

•	Literature Review: “Family Financial Socialization: Theory and Critical Review” by Clinton Gudmunson & Sharon Danes - https://shibboleth.illinois.edu/idp/profile/SAML2/POST/SSO
•	Money Harmony - https://www.moneyharmony.com/moneyharmony-quiz
•	Klontz Money Scripts Inventory - https://www.yourmentalwealthadvisors.com/our-process/your-money-script/
•	CFPB Financial Well-being Scale - https://www.consumerfinance.gov/consumer-tools/financial-well-being/

Episode 23: Money Personalities & Financial Well-being

If you have a loan, then the latest episode of Making Cents of Money is for you! Learn how loan servicers play a key role in borrowers’ financial lives and more!


Show Notes:

Government and Agency Reports:
•	Consumer Financial Protection Bureau. (2024, Apr 3). What happens if my loan servicer changes? Retrieved from https://www.consumerfinance.gov/ask-cfpb/what-happens-if-the-company-that-i-send-my-mortgage-payments-to-changes-en-215/ 
•	U.S. Department of Education. (2023). Loan servicing information. Retrieved from https://studentaid.gov

Laws and Regulations:
•	Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. §§ 2601-2617.
•	Consumer Financial Protection Bureau. (n.d.). Real Estate Settlement Procedures Act (RESPA). Retrieved from https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/real-estate-settlement-procedures-act/
•	Truth in Lending Act (TILA), 15 U.S.C. §§ 1601-1667f.
•	Consumer Financial Protection Bureau. (n.d.). 12 CFR Part 1026 – Truth in Lending (Regulation Z). Retrieved from https://www.consumerfinance.gov/rules-policy/regulations/1026/

Web Resources:
•	Federal Trade Commission. (n.d.). Your rights when paying your mortgage. Retrieved from https://consumer.ftc.gov/articles/your-rights-when-paying-your-mortgage
•	Federal Housing Finance Agency. (n.d.). About Fannie Mae & Freddie Mac. Retrieved from https://www.fhfa.gov/about/fannie-mae-freddie-mac

Student Loans:
•	Federal Student Aid. (n.d.). Who’s my student loan servicer? Retrieved from https://studentaid.gov/manage-loans/repayment/servicers 
•	University of Illinois System Student Money Management Center (n.d.). Student loans. Retrieved from https://www.studentmoney.uillinois.edu/learn/studentloans 
•	Student Loan Management #GetSavvy webinar recording on YouTube: https://youtu.be/_9duc7kvTqg?feature=shared 


Episode 114: The Role of Loan Servicers

In the latest episode of Making Cents of Money, learn about the habits that can impact your financial decisions and how stress plays a role in spending. 
 
Show Notes:
 
Mental Health Crisis Resources: Illinois Department of Central Management Services’ Crisis Resources: https://cms.illinois.gov/benefits/stateemployee/bewell/mental-health/crisis.html 
•	World Health Organization – Mental Health: https://www.who.int/health-topics/mental-health
•	National Alliance on Mental Illness (NAMI): https://www.nami.org/


American Psychological Association. (2015, February 4). American Psychological Association survey shows money stress weighing on Americans’ health nationwide. Retrieved from https://www.apa.org/news/press/releases/2015/02/money-stress 
 
American Psychological Association. (2023). Stress in America 2023: A nation recovering from collective trauma. Retrieved from https://www.apa.org/news/press/releases/2023/03/stress-in-america 
 
Falconier, M. K., & Epstein, N. B. (2011). Couples experiencing financial strain: What we know and what we can do. Family Relations, 60(3), 303–317. 
 
Gelman, A., & Kliger, D. (2021). Effect of time-induced stress on financial decision making in real markets. PloS One, 16(11), e0123740. 
 
Heo, W., Cho, S. H., & Lee, P. (2020). APR Financial Stress Scale: Development and validation of a multidimensional measurement. Journal of Financial Therapy, 11(1), 2. https://newprairiepress.org/jft/vol11/iss1/2/ 
 
Lazarus, R. S., & Folkman, S. (1984). Stress, appraisal, and coping. Springer Publishing Company. 
Narayan, A. (2024). The impact of financial stress on workplace harassment and discrimination. Management Science, 70(4), 2447–2458. 
 
Ong, A. D., Sturgeon, J. A., Arewasikporn, A., Okun, M. A., Davis, M. C., & Zautra, A. J. (2015). The psychosocial context of financial stress: Implications for inflammation and psychological health. Psychosomatic Medicine, 77(2), 187–194. 
 
Porcelli, A. J., & Delgado, M. R. (2009). Acute stress modulates risk taking in financial decision making. Psychological Science, 20(3), 278–285. 
 
Shafir, E., Mullainathan, S., & Shafir, E. (2013). Scarcity: Why having too little means so much. Times Books. 
 
Van Boven, L., & Gilovich, T. (2003). To do or to have? That is the question. Journal of Personality and Social Psychology, 85(6), 1193–1202. 
 
Wilke, J., & Boden, J. M. (2021). Financial scarcity and financial avoidance: A prospective study. Journal of Economic Psychology, 87, 102408. 
 
 Mental Health Crisis Resources: Illinois Department of Central Management Services’ Crisis Resources: https://cms.illinois.gov/benefits/stateemployee/bewell/mental-health/crisis.html 

Relevant Podcast Episodes: 
•        Money in Relationships: https://soundcloud.com/idfpr/money-and-relationships
•        Financial Socialization: https://soundcloud.com/idfpr/episode-99-financial-socialization
•        Investing: https://soundcloud.com/idfpr/episode-57-investing-to-reach-financial-goals
•        Budgeting: https://soundcloud.com/idfpr/mcom-ep20-budgeting-final
•        Probably Inflation: https://soundcloud.com/idfpr/episode-30-inflation

Episode 115: The Money-Stress Habit Cycle

Ever dreamed of owning your own business? In this episode of Making Cents of Money, UIUC professor Mark Smith discusses Entrepreneurship Through Acquisition (ETA). Join us as we learn about the benefits of buying a business instead of starting it from scratch. 

Show Notes:

Professor Smith's Instructor Profile: https://giesbusiness.illinois.edu/profile/mark-smith

U of I's Entrepreneurship Through Acquisition class: https://giesbusiness.illinois.edu/news/2023/06/12/entrepreneurship-through-acquisition-gies-grad-puts-coursework-into-action

Deibel, W. (2018). Buy then build. LionCrest Publishing. ISBN: 978-1-5445-0113-0. ISBN: 978-1-5445-0113-0 

Ruback, R., & Yudkoff, R. (2017). HBR guide to buying a small business. Harvard Business Review Press. ISBN: 978-1-63369-250-3. 

Warrillow, J. (2010). Built to sell: Creating a business that can thrive without you. Penguin Group. ISBN: 978-1591845829. 

Recommended Podcasts: 
•        Built to Sell with John Warrillow: https://builttosell.com/podcast/
•        Let's Buy a Business with Ryan Condie: https://ryancondie.libsyn.com/


Episode 116: What to Know Before Buying a Business: Entrepreneurship Through Acquisition

Tune in for an important episode of Making Cents of Money. IDFPR Secretary Mario Treto, Jr. joins the podcast to explain Why Regulation Matters. He breaks down the importance of recent regulatory initiatives that ensure consumers are protected and discusses how Illinois is leading the nation in instituting and enhancing these standards. It’s a can’t miss episode!


Show Notes


•	Consumer Financial Protection Bureau. (2023). Annual report 2023. https://www.consumerfinance.gov/data-research/research-reports/consumer-response-annual-report-2023/
•	Congressional Research Service. (2022). The 2007–2009 financial crisis. https://www.congress.gov/crs-product/R43413
•	Brookings Institution. (2025). Series on financial markets and regulation. https://www.brookings.edu/tags/financial-markets-and-regulation/ 
•	Illinois Department of Financial and Professional Regulation (IDFPR). (2021). Predatory Loan Prevention Act. https://idfpr.illinois.gov/content/dam/soi/en/web/idfpr/news/2021/2021-03-23-predatory-loan-prevention-and-cra.pdf 
•	Illinois Department of Financial and Professional Regulation. (n.d.). The Illinois Community Reinvestment Act. https://idfpr.illinois.gov/il-cra.html

Episode 117: Why Regulation Matters

If you have a student loan or are considering your options for a loan, this episode is for you. The hosts of Making Cents of Money discuss the latest updates of repayment plans and break down how the decisions you make now will impact your financial future.

Show Notes:

Federal Resources
•	U.S. Department of Education, Federal Student Aid. (n.d.). Federal Student Aid. StudentAid.gov. https://studentaid.gov
•	Equifax, Experian, & TransUnion. (n.d.). Annual Credit Report. AnnualCreditReport.com. https://www.annualcreditreport.com

University of Illinois System Resources
•	University of Illinois System, University Bursar. (2025). Know what you owe. https://paymybill.uillinois.edu/student_loans/know_what_you_owe
•	University of Illinois System, Student Money Management Center. (n.d.). Student loans. https://www.studentmoney.uillinois.edu/learn/studentloans

Prior Related Making Cents of Money Podcast Episodes 
•	Federal Student Loan Forgiveness (ep. 48): https://blogs.uofi.uillinois.edu/view/7550/1805186696
•	Paying for College with Scholarships (ep. 52): https://blogs.uofi.uillinois.edu/view/7550/19876420
•	Return to Repayment Update (ep. 60): https://blogs.uofi.uillinois.edu/view/7550/2144507315
•	Understanding FAFSA (ep. 72): https://blogs.uofi.uillinois.edu/view/7550/180972984
•	Loan Payments Resumed in October (ep. 73): https://blogs.uofi.uillinois.edu/view/7550/1498217343
•	April 30th Student Loan Deadline (ep. 81): https://blogs.uofi.uillinois.edu/view/7550/706826894
•	Back to School: College and Credit (ep. 90): https://blogs.uofi.uillinois.edu/view/7550/1942070018
•	PSLF Seekers in SAVE: Costs of Administrative Forbearance (ep. 92): https://blogs.uofi.uillinois.edu/view/7550/514139128
•	On-Ramp to Repayment Ends 9/30 for Federal Loan Borrowers (ep. 93): https://blogs.uofi.uillinois.edu/view/7550/699654176
•	Federal Student Loan Updates [Debt Collection Resumes] (ep. 110): https://blogs.uofi.uillinois.edu/view/7550/1101960728
•	The Role of Loan Servicers (ep. 114): https://blogs.uofi.uillinois.edu/view/7550/681485881

Webinar Recording
•	Pellegrini, A., & Giancola-Shank, N. (2025, March 6). Student loan management #GetSavvy webinar recording [Video]. YouTube. https://youtu.be/_9duc7kvTqg?si=gZGRCFfSTAJ3HF6A

Register for April 2026 Student Loan Repayment webinar at https://go.uillinois.edu/getsavvywebinars.

Episode 118: Student Loan Repayment in 2025

SHOWNOTES: 
•	American Journal of Preventive Medicine. (2025). The health and economic burden of employee burnout to U.S. employers. American Journal of Preventive Medicine, 68(4). https://www.ajpmonline.org/article/S0749-3797(25)00023-6/abstract
•	Breathe HR. (2024). The unused holiday & burnout epidemic. https://www.breathehr.com/en-gb/resources/holiday-burnout-report-2024
•	Champion Health. (2024). Workplace health report 2024.
•	Deloitte. (2024, May 17). The projected costs and economic impact of mental health inequities in the United States. Deloitte Insights. https://www2.deloitte.com/us/en/insights/industry/health-care/economic-burden-mental-health-inequities.html
•	Eagle Hill Consulting. (2024, December 5). Nearing 2025, almost half of workers expect to leave some vacation time unused. HR Dive. https://www.hrdive.com/news/nearing-2025-almost-half-of-workers-unused-vacation-time/734609/
•	Effectory. (2024, January 11). The emotional and economic costs of overlooking wellbeing in the workplace. https://www.effectory.com/knowledge/the-emotional-and-economic-costs-of-overlooking-wellbeing-in-the-workplace/
•	Gallup. (2025, March 27). The economic cost of poor employee mental health. https://www.gallup.com/workplace/404174/economic-cost-poor-employee-mental-health.aspx
•	Illinois Department of Labor. (2024). Paid Leave for All Workers Act. https://labor.illinois.gov/laws-rules/paidleave.html
•	Illinois Department of Labor. (2024). Paid Leave for All Workers Act FAQ. https://labor.illinois.gov/faqs/paidleavefaq.html
•	Lane Report. (2024, July 24). One-third of U.S. employees' PTO, vacation days go unused. https://www.lanereport.com/175306/2024/07/one-third-of-u-s-employees-pto-vacation-days-go-unused/
•	MHFA England. (2024, November 21). Key workplace mental health statistics for 2024. https://mhfaengland.org/mhfa-centre/blog/Key-workplace-mental-health-statistics-for-2024/
•	National Alliance on Mental Illness. (2025, February 18). The 2024 NAMI workplace mental health poll. https://www.nami.org/support-education/publications-reports/survey-reports/the-2024-nami-workplace-mental-health-poll/
•	Nekoei, A., et al. (2024). The economics of burnout. Centre for Economic Policy Research. https://cepr.org/voxeu/columns/economics-burnout
•	SHRM. (2024, April 12). Why mental health will be one of the biggest topics of 2024. https://www.shrm.org/topics-tools/news/benefits-compensation/mental-health-burnout-top-trend-aflac-report
•	Sorbet. (2024). PTO Report 2024.
•	Spill. (2024). 64 workplace burnout statistics you need to know for 2024. https://www.spill.chat/mental-health-statistics/workplace-burnout-statistics
•	The Washington Post. (2023, December 30). The mystery of the disappearing vacation day. https://www.washingtonpost.com/business/2023/02/10/disappearing-vacation-days/
 


Episode 119: Prioritizing Your Paid Time Off

Can money really buy happiness? On this episode of Making Cents of Money, we unwrap the science behind money and joy with Donovan Sanchez who returns to discuss his primary research interest. From hedonic adaptation to pro-social spending, learn ways to boost well-being without breaking the bank. 

Prior Episodes Featuring Donovan Sanchez:
•	Ep. 33 – Establishing a Vision for Your Life
•	Ep. 55 – Wealth Building as a Balancing Act
•	Ep. 65 – Financial Planner vs AI
•	Ep. 80 – Building Wealth After Graduation

Sources Referenced in This Episode
•	Brooks, A. C. (2022). From Strength to Strength: Finding Success, Happiness, and Deep Purpose in the Second Half of Life. Portfolio.
•	Chancellor, J., & Lyubomirsky, S. (2011). Happiness and thrift: When (spending) less is (hedonically) more. Journal of Consumer Psychology, 21(2), 131–138. https://doi.org/10.1016/j.jcps.2011.02.004
•	Consumer Financial Protection Bureau. (2015). Financial Well-Being: The Goal of Financial Education.
•	Dunn, E. W., Gilbert, D. T., & Wilson, T. D. (2011). If money doesn't make you happy, then you probably aren't spending it right. Journal of Consumer Psychology, 21(2), 115–125. https://doi.org/10.1016/j.jcps.2011.02.002 
•	Helliwell, J. F., et al. (2024). World Happiness Report 2024. University of Oxford.
•	Kahneman, D., & Deaton, A. (2010). High income improves evaluation of life but not emotional well-being. PNAS, 107(38), 16489–16493. https://doi.org/10.1073/pnas.1011492107
•	Killingsworth, M. A., Kahneman, D., & Mellers, B. (2023). Income and emotional well-being: A conflict resolved. PNAS, 120(10). https://doi.org/10.1073/pnas.2208661120 
•	Waldinger, R. (2015). What Makes a Good Life? Lessons from the Longest Study on Happiness. TED Talk.

Episode 120: Money and Happiness

Show Notes:
"Before You Give or Take Financial Advice, Read This" [SMMC Blog Post]: https://blogs.uofi.uillinois.edu/view/7550/862829868 
FTC Disclosures 101 for Social Media Influencers: https://www.ftc.gov/business-guidance/resources/disclosures-101-social-media-influencers 
Investor.gov professional verification tools: https://www.investor.gov/introduction-investing/getting-started/working-investment-professional/check-out-your-investment-professional 
Illinois Department of Financial & Professional Regulation: https://online-dfpr.micropact.com/lookup/licenselookup.aspx 
IRS guidance on choosing tax preparers: https://www.irs.gov/tax-professionals/choosing-a-tax-professional 
“Hack-Proof Your Holidays #GetSavvy Webinar Recording” [YouTube Video]: https://youtu.be/p2Leqox64cY?si=VAKsFJTuZFcCvyEF
 
Related Episodes:
Ep. 14 – Short-selling: https://blogs.uofi.uillinois.edu/view/7550/433822269
Ep. 25 – Choosing a Financial Professional: https://blogs.uofi.uillinois.edu/view/7550/518681996
Ep. 65 – Financial Planner vs AI: https://blogs.uofi.uillinois.edu/view/7550/1933077943
Ep. 76 – What is Crypto Anyway?: https://blogs.uofi.uillinois.edu/view/7550/1253298616
Ep 78 – Is Crypto the Wild West?: https://blogs.uofi.uillinois.edu/view/7550/1888916702
Ep. 99 – Financial Socialization: https://blogs.uofi.uillinois.edu/view/7550/1342187809
 
References: 
American Institute of CPAs. (2024). AICPA.org. https://www.aicpa.org/ 
Benson, J. (2016). Cognitive bias codex. https://upload.wikimedia.org/wikipedia/commons/6/65/Cognitive_bias_codex_en.svg 
Center for Advanced Hindsight. (2024). Resources. https://advanced-hindsight.com/resources/ 
CFA Institute. (2024). CFA Institute. https://www.cfainstitute.org/ 
CFP Board. (2024). Code of ethics and standards of conduct. https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct 
Certified Financial Planner Board of Standards. (2024). CFP.net. https://www.cfp.net/ 
Dictionary.com. (2021). Parasocial relationship. https://www.dictionary.com/e/tech-science/parasocial-relationship/ 
Federal Trade Commission. (2019). Disclosures 101 for social media influencers. https://www.ftc.gov/business-guidance/resources/disclosures-101-social-media-influencers 
FINRA. (2024). FINRA.org. https://www.finra.org/ 
Illinois Department of Financial & Professional Regulation. (2024). License lookup. https://online-dfpr.micropact.com/lookup/licenselookup.aspx 
Internal Revenue Service. (2024). Choosing a tax professional. https://www.irs.gov/tax-professionals/choosing-a-tax-professional 
Investment Advisers Act of 1940, 15 U.S.C. § 80b-1 et seq. https://www.sec.gov/about/laws/iaa40.pdf 
Investor.gov. (2024). Check out your investment professional. https://www.investor.gov/introduction-investing/getting-started/working-investment-professional/check-out-your-investment-professional 
Klayman, J. (1995). Varieties of confirmation bias. Psychology of Learning and Motivation, 32, 385-418. https://doi.org/10.1016/S0079-7421(08)60315-1 
National Association of Personal Financial Advisors. (2024). NAPFA fiduciary standard. https://www.napfa.org/fiduciary-standard 
Pellegrini, A. (2025). Before you give or take financial advice, read this. University of Illinois Extension Blog. https://blogs.uofi.uillinois.edu/view/7550/862829868 
Securities and Exchange Commission. (2022, October 3). SEC charges Kim Kardashian for unlawfully touting crypto security [Press release]. https://www.sec.gov/newsroom/press-releases/2022-183 
The Decision Lab. (2024). Cognitive biases: A list of the most relevant biases in behavioral economics. https://thedecisionlab.com/biases 
Yakoboski, P. J., Lusardi, A., & Sticha, A. (2024). The TIAA Institute-GFLEC Personal Finance Index (P-Fin Index). Global Financial Literacy Excellence Center (GFLEC). https://gflec.org/initiatives/personal-finance-index/ 
 

Episode 121: Before you give or take financial advice, listen to this...

Consumer Education Resources
Acentria Insurance. (2025, January 29). Avoiding common personal insurance coverage gaps. https://acentria.com/avoiding-common-personal-insurance-coverage-gaps/

Insurance Information Institute. (2024). Background on risk-financing. https://www.iii.org/article/background-on-risk-financing
InsuResilience Global Partnership. (2023, July 21). Glossary of climate and disaster risk finance and insurance terms. https://www.insuresilience.org/knowledge/glossary/

New York Life. (2025, May 2). Personal financial risk management. https://www.newyorklife.com/articles/personal-financial-risk-management


Risk Management Strategy Sources
Corporate Finance Institute. (2023, May 23). Accepting risk: Overview, advantages, disadvantages, alternatives. https://corporatefinanceinstitute.com/resources/career-map/sell-side/risk-management/accepting-risk/

Corporate Finance Institute. (2024, July 10). Financial risk management strategies: Overview and examples. https://corporatefinanceinstitute.com/resources/career-map/sell-side/risk-management/financial-risk-management-strategies/

Investopedia. (2024). Accepting risk. https://www.investopedia.com/terms/a/accepting-risk.asp

Investopedia. (2024). Risk management. https://www.investopedia.com/terms/r/riskmanagement.asp

Research Sources and References
Associated Press. (2023, July 3). Derecho storm causes widespread power outages in Springfield, Illinois. https://apnews.com/article/derecho-storm-springfield-illinois-power-outage-a489aecfd65393099fbdc5e36fd84037

Academic and Scholarly Sources
Colquitt, L. L., & Hoyt, R. E. (1997). Determinants of corporate hedging behavior: Evidence from the life insurance industry. Journal of Risk and Insurance, 64(4), 649–671.

Cummins, J. D., Phillips, R. D., & Smith, S. D. (1997). Corporate hedging in the insurance industry: The use of financial derivatives by U.S. insurers. Journal of Risk and Insurance, 64(4), 595–640.

Mayers, D., & Smith, C. W. (1987). Corporate insurance and the underinvestment problem. Journal of Risk and Insurance, 54(1), 45–54.
Outreville, J. F. (1998). The meaning of risk in economics of insurance. Journal of Risk and Insurance, 65(3), 459–474.

Santomero, A. M., & Babbel, D. F. (1997). Financial risk management by insurers: An analysis of the process. Journal of Risk and Insurance, 64(2), 231–270.

Other Relevant Making Cents of Money Episodes:

•	Ep. 62 – Get Covered, Illinois: https://blogs.uofi.uillinois.edu/view/7550/975133877
•	Ep. 55 – Wealth Building as a Balancing Act: https://blogs.uofi.uillinois.edu/view/7550/1517205319
•	Ep. 49 – Dealing with Emergencies: https://blogs.uofi.uillinois.edu/view/7550/1663281326
•	Ep. 39 – Protecting Pets: https://blogs.uofi.uillinois.edu/view/7550/1942963443
•	Ep. 29 – Tackling Insurance! (Part 2): https://blogs.uofi.uillinois.edu/view/7550/282447780
•	Ep. 28 – Tackling Insurance! (Part 1): https://blogs.uofi.uillinois.edu/view/7550/2068531575
•	Ep. 26 – Emergency Funds: https://blogs.uofi.uillinois.edu/view/7550/1471084251


Episode 122: Managing Risk with Insurance, Part 1: Why and How

If income-driven repayment flexibility matters to you, don't wait until summer 2026. Any federal loans disbursed on or after July 1, 2026, lose access to IBR, ICR, and PAYE. Because consolidation can take months to process, treat April 1, 2026 as your planning deadline.

FREQUENTLY ASKED QUESTIONS

What is changing with income-driven repayment?
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, restructures federal student loan repayment starting July 1, 2026. Loans disbursed on or after that date are limited to a new Standard Repayment Plan or the Repayment Assistance Plan (RAP). Legacy plans — IBR, ICR, and PAYE — will not be available for those loans.

Are IBR, ICR, and PAYE going away entirely?
Not immediately. Borrowers with loans disbursed before July 1, 2026, who take on no new loans after that date, can still enroll in or remain on IBR, ICR, or PAYE. That said, per NASFAA's bill analysis, borrowers on ICR or PAYE must move to IBR, a standard plan, or RAP by July 1, 2028 — otherwise they are automatically placed in RAP. IBR remains available for existing borrowers on an ongoing basis.

Why does consolidation matter?
Borrowers with FFEL loans, Perkins loans, or mixed federal portfolios often must consolidate into a Direct Consolidation Loan to access income-driven repayment at all. Under the OBBBA, that loan must be disbursed — not just applied for — by June 30, 2026. A consolidation disbursed on or after July 1, 2026 loses access to IBR, ICR, and PAYE, even for borrowers previously enrolled in those plans.

Parent PLUS borrowers have an additional requirement: a consolidation loan used to pay off a Parent PLUS loan must enter repayment under ICR before July 1, 2026 to preserve later IBR eligibility.

Why April 1?
April 1 is not in the law — it's a practical safety deadline. Federal Student Aid encourages borrowers who need to consolidate to apply at least three months before July 1, 2026 to ensure disbursement clears by June 30. Three months back from July 1 is April 1.

What counts as "disbursed"?
Disbursement means the consolidation loan has been fully processed, the underlying loans paid off, and a new Direct Consolidation Loan officially issued. Submitting an application or receiving approval does not count if the actual disbursement occurs on or after July 1, 2026.

Should everyone consolidate before April 1?
No — consolidation is not automatically the right move. Consider the impact on interest capitalization, existing borrower benefits, and forgiveness timelines before acting. The goal isn't "everyone consolidate." It's everyone check. Log in to StudentAid.gov, review your loan types, and determine whether action is needed before the window closes.

REFERENCES

NASFAA (2026, January). Federal student aid changes from the One Big Beautiful Bill Act.
https://www.nasfaa.org/uploads/documents/Federal_Student_Aid_Change_OB3.pdf

U.S. Department of Education, Federal Student Aid. Big updates: Changes to federal student loan repayment.
https://studentaid.gov/announcements-events/big-updates

U.S. Congress (2025). H.R. 1 — One Big Beautiful Bill Act (119th Congress).
https://www.congress.gov/bill/119th-congress/house-bill/1/text



Episode 23: Money Personalities & Financial Well-being

Making Cents of Money

Related tracks