So I think my student loan situation is probably worse than most. I’m a recent grad my freshman year I was incorrectly told by the school’s finance department that the parent plus loans wouldn’t accrue interest while I was in school so foolishly I put it off until I graduated (yes, I know I’m not legally obligated to help my with repayment but I still agreed to it) and now the balance is about $140,000.00 (about 120,000 in principal and 20,000 in interest so far). And it’s spread across 4 separate loans @ 6.3%, 7.5%, 8.%, and 9% in terms of interest rate.
And for steps I need to take would be to consolidate them into 1 before applying for an IDR? Do I need to need to do a double consolidation?
Any advice? Would the even allow IDR for a balance that big?
Help! $140,000.00 Parent Plus Loan
byu/Both-Dragonfruit-664 inStudentLoans
Posted by Both-Dragonfruit-664
2 Comments
PPLs accrue interest during enrollment but no payment is required if you applied for in-school deferment.
You need to quickly have them consolidate the PPLs into a single Direct Consolidation Loan and put it onto ICR for now. After one payment on ICR (and once the DoED gets their act together and updates their systems), you can move from ICR to IBR which you have to anyway as ICR is going away in 2028.
Doesn’t matter how big or small your balance is, you can use an IDR plan. (PPLs must be consolidated first before getting onto ICR and then also with the new law, moving onto IBR).
PPLs no longer need to be double consolidated. They can be consolidated and put on ICR for a month, which then makes them eligible for IBR.
But it will be based off your parents income. What is your current income?