NY Attorney General Cautions Student Loan Borrowers on Consolidation Risks

New York Attorney General Letitia James issued a consumer alert, advising federal student loan borrowers about the potential risks of consolidating loans, particularly after federal law changes by the Trump administration. The alert emphasizes that new consolidation loans, especially post-July 1, 2026, could restrict repayment options, hinder loan forgiveness paths, and prolong repayment periods. Parent PLUS borrowers are identified as particularly vulnerable to these changes.