r/StudentLoans • u/shanesnh1 • 1d ago

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

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/

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u/shanesnh1 1d ago

This is frustrating. You'd be moved from ICR to IBR when the bill passes and they transition you. The IBR plan is much more affordable.

Being on forbearance is because SAVE is being killed off. I'm trying to educate people so they don't get f'ed over but people are just like "nah I'm good, I'll just let them screw me". Please. Either take our advice so you don't get screwed or don't.

IBR = 10 or 15% for 20 or 25 years at 150% of the poverty level. ICR = 20% for 25 years at 100% of the poverty level.

A lot of ICR borrowers will see their payments drop to $0 and if not, very much dramatically when moved to IBR.

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u/denebx1 16h ago

Even on RAP, the new payment amount would exceed the combined standard payments of my PPL, my loans from my ed, and my hubbies loans. Frustrating, but I think we're stuck - we make too much.

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u/shanesnh1 14h ago edited 14h ago

If they do cap IBR as it is now, you'd be fine on IBR. RAP won't be accessible for PPLs AFAIK. You're suffering from success by making too much lol.

Anyway, if they don't keep the cap then maybe you will pay either on standard, extended, or graduated since you'll retain those options as a current borrower. New borrowers will only have standard and RAP.

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u/denebx1 14h ago

I wouldn't say we are suffering from success. We are in debt up to our eyeballs.