Double Consolidation for Parent Plus Loan: Is this Dead or Alive?
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- Опубликовано: 9 июн 2024
- Christie discusses Double Consolidation for Parent Plus Loans - Is this Dead or Alive?
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𝗖𝗮𝗹𝗹: (𝟴𝟭𝟯) 𝟮𝟱𝟴-𝟮𝟴𝟬𝟴 or
Email: info@christiearkovich.com
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Our two attorneys, Christie Arkovich and Barbara Leon, help to reduce student loan debt, file bankruptcy, avoid garnishment and foreclosure and other problems that too much debt can create.
Barbara Leon is a Florida licensed attorney for nearly 20 years in the areas of bankruptcy, foreclosure and student loans. Her practice and experience is well diversified, having gained experience through an internship with the U.S. Attorney’s office, a clerkship with a Federal Magistrate Judge, and both creditor and debtor private practice. This insight helps her to see all sides and find a solution quickly that works for everyone.
As founder of the firm, Christie Arkovich has practiced law for over 25 years. She is a frequent speaker at various consumer-oriented continuing legal education seminars for other attorneys before the Florida Bar, the American Bankruptcy Institute, the National Association of Consumer Advocates and the Tampa Bay Bankruptcy Bar Association. The firm maintains an AV Preeminent rating and enjoys excellent client reviews and we welcome you to see what we can do for you!
Our channel Student Loan Sidebar is a continuation of a quarterly column that we write for our local bankruptcy attorney bar organization helping people get a handle on their student loan debt. Whenever possible, Christie shares her knowledge about student loans gained working as former trial counsel for Sallie Mae, ECMC, and other student loan servicers or guarantors, and her current law practice of over 25 years.
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𝗖𝗮𝗹𝗹: (𝟴𝟭𝟯) 𝟮𝟱𝟴-𝟮𝟴𝟬𝟴 or
Email: info@christiearkovich.com
Your videos are so well explained and much appreciated.
Thank you Linda! Comments like this make me want to do more!
Help! Which services should I send my PLUS loans for consolidation if the 3 are currently with Nelnet? I plan to send 2 to one servicer and one to another servicer. Any thoughts on which one is best for the final servicing?
To do the initial consolidation do I need a separate paper application for each? I have 3 PPL. Can two go to one servicer and one to another or do I need 3 servicers and 3 separate paper applications?
Thank you.
ThaNks! 2 questions: I have three PPL loans for son, long graduated, and one PPL loan for daughter who is graduating soon, 12/23. (pmts start sometime in 2024, on hers). All same servicer. Can I consolidate them together as a group, 2 and 2? Unsure, as daughters has zero pmts due, at this time, so its character is different from the other 3. I want to make sure I do it right!
I"m in software industry - yes, your assumption is right. they needed to get the indicator put in place so that it can be set now. then, starting 7/1/2025, it will start looking at the indicator. so, if consolidation was done before the indicator was in place, those people probably will be able to double consolidate also, even if after 7/1/25.
This was wonderful.
So glad you found this video informative!
This is amazing, QQ for you.
My dad has multiple individual Direct Plus Loans for myself and my 2 sisters. We make separate payments to our loans based on the statement amounts for our respective loans.
How would we make these payments once the loans are all lumped into one big sum?
Thanks!
You could do separate consolidations for each one and they would still be separate so you can see the payment for each. A consolidation is like a refinance in that it changes the loan characteristics. You might find it more difficult to have three different ICR or potentially SAVE payments though. A servicer should be able to send you a statement which would show how much is being applied to each loan - you could ask them? Not sure how they would communicate that info to you or if they can.
Thanks for the great videos. Can you do a double consolidation with only two loans listed?
Yes you can! Provided neither are a Direct Consolidation loan, you can do this with only two Parent Plus loans. Think of it like a refinance. You are consolidating one loan for the benefits of the Direct program. Then you consolidate the other loan with a different servicer. A final consolidation would bring them all together. We offer strategy sessions to help you do this - contact our office at 813-258-2808.
Initially you said "why not take the chance" (in trying the double consolidation, even if it fails to make one eligible for SAVE). But then you talked briefly about the risks in doing so. I was wondering what the risks are in doing the double consolidation if it fails in allowing one to be on the SAVE program. I honestly didn't understand anything you said about the downsides.... :( It would be great to know what the actual downsides/risks are/could be, because I don't want to wind up in an even worse situation. Thank you to anyone who knows anything about this.
I'd really like to talk with you specifically about your situation and loans. There are a few factors to consider that cannot be adequately addressed in a video with an overview of options. For instance, the dates of your loans, the IDR audit, your income, how long you plan on working, if any interest has already accrued but not been capitalized, your health. Please contact us for a strategy session - we charge $350 and do these by conf call or zoom with screen share if possible. Our office number is 813-258-2808.
Is there an easier way to find the mailing addresses for the loan servicers to mail the paper applications to?
We have this on our blog: www.tampabankruptcylawyerblog.com/mailing-addresses-for-consolidation-applications/
Thanks for this informative video.
Questions:
1) Have you been successful getting the whole Double Consolidation Process complete and get Saver on loans done after the marker appeared on the data file?
2)To take advantage of the IDR exception rule that expires on 12/31/2023, for PSLF - must the loans must be completed consolidated by that date or as long as they're in process we are still ok?
Thanks in advance for your time
Yes, the double consolidation process is working even after the marker appears on the data file for Parent Plus loans. Here is a client's comments today -- nothing personal disclosed - but this was someone who did the double and now has applied for SAVE which she's been told is no problem, but takes up to 60 days for approval.
* I want to share some good news, along with my recent experience with the loan forgiveness process. The loan consolidation that you assisted me with was approved. THANK YOU, THANK YOU, THANK YOU!!!
* This morning, I applied over the phone for the IDRP Save program. It takes up to 60 days for IDRP to be approved. My loan is now in forbearance pending IDR approval.
It's important to note that the online portals will not show SAVE as an option, and some customer service reps will say no to the SAVE application, but get another rep to help, or ask for a supervisor.
I sent in my paper applications a week ago as step one of the double consolidation. My first bill is due next month & I cannot possibly afford it. Will I be protected under the “on ramp” program to not make any payments until I understand if the double consolidation worked for me or not?
The on ramp lasts for 12 months - and yes, there would be no collection and no dings on your credit for any delinquencies for the next year.
Is the on-ramp program available to those with parent plus loans? Thank you.
I consolidated all of my parent plus loans it is one loan through MOLEA. Is there anything else I can do since it appears I missed out on the double consolidation? It seems that If I fill taxes separately from my spouse would that matter?
You can consider taking a degree seeking loan and then consolidating it with the Parent Plus loans perhaps. That way they would be reconsolidated. If you did the consolidation before 2010, its possible that it may be a FFEL consolidation and can be re-consolidated now to Direct. And yes, if you file separate tax returns from your spouse, even under ICR, only your income will count. If you have a medical condition that inhibits your work, the TPD program may work for you also! Please contact us for a session to go over each option more thoroughly if you like. Info@christiearkovich.com or 813.258.2808.
I am not sure where to mail the paper forms. I have everything ready but the website doesn’t tell you where to mail it. Does it go to two different loan companies?
Federal student aid web site list 5 servicers: edifinancial, Mohela, aidvantage, nelnet & ECSI
You want to take half your Parent Plus loans and consolidate with one servicer, and half with another. Then recombine them. You can only do one consolidation every six months, so you'll likely need two papers and one online. We do strategy sessions where we go over this, which servicers to use, why paper, how to divide the loans, addresses etc. Please call us at 813-258-2808 for a strategy session.
Is it past the date to be able to try to do the double consolidation ? I have not begun the consolidation process at all. My goal is to try to consolidate several parent plus loans into two separate loans, with different loan servicers (using paper method), and then will have to wait 3 months (or so?) to then consolidate those loans into a third loan. Hopefully the final loan I end up with allow me to qualify for SAVE, and/or help me to have much lower payments. But again, I don’t know if it is past time to start this process... If anyone has and guidance on that, I truly thank you in advance for taking the time. And best regards to all.
Hopefully, it is not too late - and the new Rule will allow this up until July 1, 2025. You may have to ask your servicer to place you into SAVE if it doesn't appear as an option along with ICR after the final consolidation.
Thank you so much@@ArkovichLaw
Were you able to request the IDR or SAVE when calling the servicer? If so , Which servicer did you call?
@@mbrights3158
Can I apply for and use On-Ramp while....I'm in the process of double consolidation? Is that possible?
Yes, but it's automatic. If you simply don't make a payment, your loans will be considered to be on the On Ramp. You wouldn't have to make a payment if one becomes due while you are doing all the consolidations.
I have 3 parent plus loans. I understand doing a paper application for two of the loans and choose a loan company. How do I consolidate the last one?
You can consolidate a Parent Plus loan to a Direct loan all by itself. You don't need an additional loan. I'd suggest a separate servicer than the one doing the other consolidation. Then you can submit a paper consolidation application to re-combine all of them. Follow up with an inquiry to the ombudsman office citing the July Rule if the last servicer denies SAVE and tries to put you into ICR. You would ask the ombudsman to manually put you on SAVE per the July Rule.
Whats the ombudsman office. Is that with the loan servicer? Like nelnet?
If you consolidate 2 parent plus loans and do not get approved for save plan, do you have to do ICR plan or can you do one of the standard repayment plans or extended repayment plan?
You could do one of the standard payments or extended, graduated yes. But call your servicer first to ask to be placed into SAVE.
@@ArkovichLaw for the final step of consolidating the 2 PPL's together, could we do it by paper application and send the IDR replayment plan request with SAVE checked off for the repayment choice vs doing it online and it only allowing us to choose ICR?
Does any of this information apply for just one Parent plus loan? I would like to get the PP designation dropped from this loan. Will it work if I submit the same loan to 2 different loan services?
Please watch our newest video - dropped today. About an ombudsman review due to the new indicator for Parent Plus loans and using the July 2023 rule.
So if I go with the consolidation process … could they maybe apply SAVE if I choose it? And what would happen to those loans if that process fails after it gets consolidated into one final loan? I will end up with the final consolidation loan w it’s ICR! Can I re finance w a private lender if it would be better ? I don’t qualify for any other perks other than being a good mom that helped my son get an engineering degree. 😊 thanks so much
Do you know of anyone who has successfully gotten through all steps of the double consolidation loophole and gotten on SAVE?
Yes. But a call is usually required to the servicer after the last consolidation b/c only a rep can approve the SAVE app. It won't be available as an option online. Ask for a supervisor if your rep says no. This should be allowed up until July 2025.
I double consolidated my loans with ED and Mohela but just received a notice that Ed will be transferring my loans to Mohela. For the last step can i still do the double consolidation event though my now 2 separate loans are at 1 servicer?
Yes, you can take one loan and consolidate it with your current servicer. Consolidate the other with another servicer. Then after both are finished, reconsolidate them all back together with whichever servicer you like. Mohela if PSLF. Please reach out to us for assistance. 813-258-2808.
I have one consolidated loan that includes parent loan and I still have other loans that are not parent loans so if I combine my consolidated loan with one of my other loans would this still work ?
Yes it could still work. But there are possible drawbacks (limits of ICR for all loans if SAVE isn't avail under the July 2023 Rule or future administration changes this) as well as significant advantages (IDR audit recount). Those advantages expire 12/31/25 and I don't recommend waiting if your older loans would cause the IDR to start much earlier. I don't mean to be vague, but we should really talk -- call our office for a strategy session 813-258-2808.
If you consolidate 2 parent plus consolidation loans and get blocked from SAVE because loans are tagged parent plus - are you forced into ICR or do you always have the option of extended fixed if your loan amount is over $50,000 ?
My daughter just started her undergrad this fall 2023. She will be graduating in the spring of 2027. I’m taking a parent plus loan for her studies. Would double consolidation help in my case to use the SAVE plan.
It would, but keep in mind the double consolidation has to be done before July 2025 when this loophole is closed. So it may work for some - but definitely not all of her loans! Perhaps Congress/or ED will come up with some other solution for you. You may also look at the TPD program or something else b/c ICR (only one consolidation) will probably be out of reach payment wise. Depending upon your age, there may be some alternatives. If you'd like to discuss your specifics, we can set a strategy session for you, please call (813) 258-2808.
Hi, I’ve already done the first phase of consolidating my parent plus loans into two groups. I’m now trying to complete the last step but the online consolidation application is only showing Income Contingent Repayment as an eligible plan, the other plans show as ineligible. What can I do? Should I also do a paper application for this last consolidation then? Since the online application doesn’t work anymore?
Can you give more details? Are those two groups done with two different servicers?
@@MyBackyardScience Hi thanks for the reply, yes two different servicers. I originally had 9 loans and now they are in two consolidated loans
@@mateodiez593 I am just starting the process. Hopefully Christie will reply to your comment. I did searches of consolidation fails, I saw some situations where people had to be vey persistent making sure the servicer understands that these loans are not plus loans. Once case the servicer tried to add one loan to the other, and another that got locked out of the online consolidation after one fail, so they were going to try paper to finish the process. Personally, I'm totally confused and just hope that we can all make this work. I hope it's not too late to get this. I'm not advising anything because I am clueless. If you find a solution, please come back and post how you were able to be successful! 🙂
You can only do an online consolidation application every six months. There is no limit to paper consolidations.
Hi! I am currently in the same boat. Did you ever find the answer to your question regarding the last part of the consolidation?
I have seven Parent PLUS loans that I obtained to finance both my student's undergraduate and graduate education. My first bill is now due, and it's considerably higher than what I can comfortably manage. My student graduated eight months ago. Do you have any recommendations for how I should proceed?
I came across one of your RUclips videos where you discussed the double consolidation strategy, which you mentioned might not work anymore. Nevertheless, I'm interested in giving it a try. However, I currently have all my Parent PLUS loans with Aidvantage. Should I submit applications for consolidation to Mohela for three of these loans and the remaining four to Nelnet? When consolidating them into a single loan, where should I submit the application for the third consolidation? Furthermore, should I send all three forms simultaneously, or would it be better to wait for the first two consolidations to be completed before initiating the third one?
Additionally, If someone works for not- for- profit or government, I'm curious if these consolidated loans would qualify for the Public Service Loan Forgiveness (PSLF) program?
Thank you
Can you call or email our office for a strategy session? We charge $350 for this - but I can explain how to do this -- you can only do an online consolidation once every six months, and you'd want to end up with MOHELA as your servicer at the end. These loans do qualify for PSLF if your employer qualifies. We can discuss the IDR recount as well, and the back door to the PSLF if you've been working full time already. 813-258-2808 or info@christiearkovich.com.
Can you update this as soon as you get more info?? This is discouraging ☹️
I understand that Aidvantage process all of the consolidation loans for Mohela. Would that be a problem when doing the first or second consolidation under Aidvantage?
I will re-state my question to make it clearer. Can loans of two students (of one parent account)
be consolidated together? I have three with one college grad, and one loan for another college grad.
Yes, these are all Parent Plus loans and you can combine them. Please watch our double consolidation videos to try and get onto the SAVE plan -- otherwise the ICR plan is a much higher payment. If you need help, please set a strategy session with us go over the loans and procedure you should follow exactly for that double consolidation. (813) 258-2808 or info@christiearkovich.com.
I see many comments below about the final step online is not allowing us to choose IDR instead it is forcing ICR. I am ready for the final step Online Consolidation and I only have one choice and that is ICR. Did anyone have success with a particular servicer when calling and requesting IDR or SAVE? I would love to know as one of my payments is due on Dec. 2, 2023. I may have to make the payment and do the final online consolidation after this payment.
Yes, call the servicer and ask for SAVE. Talk to a supervisor if the rep pushes back. People are getting into SAVE with the double consolidation method.
we are on the final step as well, unsure if to lock into the only option wich is an ICR. Do we know if asking for SAVE plan really works? We don't want to lock into the ICR without knowing this@@ArkovichLaw
I already consolidated my ppl loans right before the Pandemic. Now, I have One Direct Consolidated Loan Unsubsidized...with Aidvantage now. Am up just put of luck? I have no other loans...this is so discouraging. Unbelievable, they left put these loans for a little relief. I am just lost on any direction...
There may be some future fix to Parent Plus loans -- but it'll be quite some time - likely after 2025. In the meantime, you can utilize tips to reduce your adjusted gross income such as (filing separate income tax returns from a spouse, contributing to 401k, 403b, Traditional IRA or Health Savings Acct). There may be other avenues to reduce your payment as well, by using paystubs rather than tax returns, timing etc. The IDR audit may help you - that likely hasn't occurred yet for you. It will give you credit toward any extended forbearances or deferments (other than in school deferment). We can certainly talk in a strategy session, make sure nothing is missed and you are doing all that you can to eliminate this debt. (813-258-2808 or info@christiearkovich.com.
Thank you so much!! Appreciate the response..very helpful
I finally spoke to the new servicer for my 8 PP Loans. He told me that there is misinformation on the internet. He said there was no such thing as a double consolidation. He said I could consolidate all of my loans at the same rate. I've never consolidated whatsoever. I'm confused now..... How can I save on my monthly payment?? I have been paying diligently since 2009...
Talk to their supervisor. And then their supervisor. The person you talked to doesnt know what he doesnt know
Thank you. I will address this again!@@denisesteinwachs6348
This!! Don't take no for an answer.
Did you have success when you called the loan servicer? If so, Which one?
@@allkindsamusicchick
This unnecessary jargon is targeting and exactly why student loans should be forgiven. I've never missed a payment, but the burden/confusion that is intentionally placed on these loans is predatory.
What do you recommend for someone who has loans on SAVE, but also has Parent Plus loans? If they move the Parent Plus loans to ICR, will this affect the loans that are currently on SAVE?
If you have enough loans, you can leave the ones already in SAVE alone. Then take the other two or more Parent Plus loans and double consolidate them to get them into SAVE as well under the 2023 Rule. For a time, we were suggesting to combine the Parent Plus loans with other loans for purposes of the IDR audit to get IDR credit for all loans back dated to the earliest loan repayment date (also works great if there are gaps in the education to redate the new ones to run with the same IDR start date as the oldest ones. You can still do that if you consolidate in the right order, that deadline is Dec 31 to have filed for consolidation.
Has anyone here already done it and have any feedback for the rest of us ? as of Oct, 31, 2023
I plan to consolidate my 4 parent plus loans into 2 ICR than hopefully into double consolidate into 1 SAVE. is it possible to add my child's 4 Direct Unsubsidized and 4 subsidized loans to the SAVE, to have only one bill for the family with the lowest full term payment as we work toward loan forgiveness?
I'm hearing this is working, if the final servicer doesn't place you into SAVE, ask for a supervisor. SAVE won't be an online choice either, you'd have to call your servicer to ask for SAVE. I welcome anyone else's comments here who has successfully done this final step to get into SAVE.
Except that I 100% cannot afford the ICR. No way shape or form. Never knew that they were only ICR. Had no clue. They have 100% closed it. I am trying to do it now. I don't have words for this.
Do you have two or more federal loans to do a double consolidation? It’s not hard to do, but quite specific in how. Maybe check out our other videos or call us for a strategy session. 813-258-2808.
The ICR is crazy high, I get it. Any chance to get into SAVE is the only way for many.
So, I learned about the double consolidation from your videos. I had 7 total loans. Consolidated into two. One with four loans, the other with three. Just did the final one online, but ICR was the only option. Mohela is the servicer for the third one. Went into absolute panic mode over only having ICR. Going to call them when the consolidation is complete. Praying that this works, because if it doesn't, I have no idea what we are going to do. I would have never taken them out if I knew it was 20% of discretionary income.
@@ArkovichLaw
There is no safe harbor, Mohela is denying anyone with double consolidation w/PPL, access to SAVE plan.
Did you call and ask your servicer to be placed into SAVE? If you already tried that, then submit an ombudsman request to get into SAVE citing the July 2023 rule which gives you two more years. We’re hearing that this is working although the Department won’t change the online program.
Please update us and let us know if you can get into SAVE. This is so important for many out there.
@@ArkovichLaw Are you saying to call federal student aid to add you on the SAVE plan or the loan servicer?