My parents took out parent plus loans for me to go to school with the understanding that I would pay them back. After doing some research, I did the double consolidation loophole, got them on the SAVE program, my parents are retired with a very low taxable income, so the monthly payment was $0.
-
Does anyone know if the double consolidation loophole is going to limit future repayment options now? They were consolidated before the 2025 deadline. But I know this administration hates seeing the little guy win, so I wouldn't be surprised if that once loophole no longer helps, like once a parent plus loan, always a parent plus loan.
-
These loans were taken out from 2016-2020, meaning (with the double consolidation loophole) they were eligible for PAYE, IBR, and ICR. I keep reading that those are going to be sunsetted in 2028, but I cannot find a clear answer if my loans will still be eligible for those options? Or I have to get on those before 2028 to stay on those? Or once they're sunsetted in 2028, I will have to switch to RAP?
Income-based repayment questions
byu/Ok_Low2073 inStudentLoans
Posted by Ok_Low2073
2 Comments
The loan won’t qualify for RAP, but it will qualify for IBR long term.
These would not be eligible for RAP.
You can currently use PAYE, IBR, or ICR to make qualifying payments towards forgiveness. By July 2028 you will only have IBR.
You would need to get out of forbearance and make a payment on one of the above IDR plans between now and June 30, 2028 to keep eligibility for IBR. So plenty of time. But if they are sitting on SAVE forbearance now but their payment would be $0 on another plan then I suggest moving now so the time starts counting towards forgiveness.