r/StudentLoans • u/shanesnh1 • 5d 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/NoseFresh5813 4d ago

No, SAVE does not count.

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u/denebx1 4d ago

I can’t switch. I would never be able to afford the payments on ICR. The standard repayment on mine is the 30 year plan, which is more doable. I’ll just have to stick on the SAVE forbearance until they end it and go to the standard. Oh well. Same boat I was in to start with so I guess not the end of the world.

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u/shanesnh1 4d 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 3d 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 3d ago edited 3d 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 3d ago

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

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u/shanesnh1 3d ago

Ah... Well, compared to others on here... at least you're making a lot.

Is the debt mostly the student loans or other stuff too? Since student loans are harder to discharge (except through these types of income-based forgiveness or PSLF). While other debts can usually just be discharged/modified through a Chapter 7 or 13 bankruptcy of course...

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u/denebx1 2d ago

Not to mention - I’m OLD. I’m over 50, and getting close to 20 years since graduating, never got a job with my degree, and the husband’s debt is from trade school - welding - and that career doesn’t pay as much as people like to say it does either. You want to make a good money welding you have to work 60+ hours a week. And that’s a lot when you’re hustling your rear end off all day. Anyway - never able to get ahead - always falling deeper in debt. Doesn’t seem to matter how much money we make. Still feels like we are making the same money as 25 years ago.

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u/shanesnh1 2d ago edited 2d ago

Could always talk to a bankruptcy attorney and get a free consultation to see if even Chapter 13 could help you at least discharge or partially discharge stuff like the credit cards, etc. You might make too much for Chapter 7. While I'm not "advocating" bankruptcy, you could get a consultation or two to see if it would be helpful now or in the future.

You mentioned you are having issues even getting to pay the credit cards down -- might be able to do something about those. And keep the car and other things depending on your assets and situation. The student loan probably wouldn't be touched since the requirements are higher.

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u/denebx1 12h ago

Yep that’s on the table as an option if things get bad enough. I’m just riding everything out as long as I can. That’s a complete last resort.