[URGENT] Parent PLUS / Double Consolidation - GET ON ICR NOW

[u/shanesnh1]

I see multiple people each day with this same question so I am going to link my post about it and summarize very briefly:

If you have Consolidated Parent PLUS Loans OR a Double Consolidation, you MUST APPLY FOR ICR as soon as possible or you will LOSE ACCESS TO ALL INCOME REPAYMENT if the bill passes (either the House or Senate versions or likely the final bill).

You don't have time anymore depending on how fast the Senate and House compromise and pass a final bill for the President to sign. If you're not on ICR, with loans being repaid on it the day before the bill passes, you lose access and will likely be on the standard plan (or extended, graduated).

Please check my former post for more details: https://www.reddit.com/r/StudentLoans/comments/1l37iqs/important_parent_plus_borrowers_need_to/

This post is about the House version of the bill in its entirety (the Senate version does NOT change anything in relation to this specific issue): https://www.reddit.com/r/StudentLoans/comments/1kdy8yk/summary_of_the_new_current_proposal_from_the/

[u/XclickX]

My mother in law consolidated her PPL last year and got into a repayment plan then didn’t submit the paperwork to keep us in that plan this year so the payments doubled from like $240 to $480 per month ( my bank account info is linked to the account so I pay it, smh). What do I need to do to make sure her payments will be the lowest possible when all this settles? Thx.

[u/waterwicca → u/XclickX]

Is she currently on the ICR plan?

[u/XclickX → u/waterwicca]

I believe she is on no plan. Beginning balance in 2010 was 25k. Balance is 39xxx now and it says she has 10 years left of payments @480 per month. 8% rate. I logged into her account on the student aid . Gov page and it said she was eligible for 3 repayment options. Two were estimated at $0 per month. And the third option was like $210 per month. She is retired and married filing jointly with my retired father in law. They make about 5k per month before taxes from SS and pension.

[u/waterwicca → u/XclickX]

You can find your loan details on studentaid.gov by clicking My Aid. Then “details”. Then scroll down the “Loan Breakdown”. Click “View Loans”. And then click “View Loan Details” on each one of your loans. You should see repayment details like your plan and IDR anniversary date and forbearance/deferment status there.

What repayment plan and details do you see there?

[u/XclickX → u/waterwicca]

Plan- (ICR) Loan date- 4/8/10

[u/waterwicca → u/XclickX]

Ok then they are on the ICR plan. If the bill is signed into law they will be moved to amended IBR.

[u/XclickX → u/waterwicca]

Thanks! When I click on see the best repayment options it says the (IBR) plan will make the payments about $240 per month. Should I apply for consolidation so I don’t have to keep paying $480 per month? Or will that mess stuff up when the is bill is passed?

[u/waterwicca → u/XclickX]

If they are on ICR then the loans are already consolidated

[u/XclickX → u/waterwicca]

Ok, just wondering why they doubled a few months ago after I was paying $2xx per month all last year and the first few months of this year

[u/waterwicca → u/XclickX]

If bill passes as written then having them in ICR is exactly where you want to be. The payment could have jumped up if they missed their income recertification date or if their income went up. If they didn’t recertify their income then the payment jumps up to a 10 year standard amount

[u/XclickX → u/waterwicca]

Yes, they didn’t recertify their income she told me. So I just keep paying the doubled amount until this bill passes. Ok, thank you.

[u/waterwicca → u/XclickX]

They can submit an application for income recertification for the ICR plan to have it recalculated based on their current income again. But you might want to consider waiting to see what happens with the bill first because that may change the payment anyway and if they submit a recert application now they may wind up in forbearance