Escape high Parent PLUS Loan payments with the double consolidation loophole 🤯

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UPDATE!!! Just announced: you now have through summer 2024 to have your previous Parent PLUS student loan payments counted towards your new, consolidated Direct student loans!
Struggling with crushing Parent PLUS student loan debt? Need some student loan relief? Discover the Parent PLUS double consolidation loophole so you can finally qualify for ALL the student loan income driven repayment plans - drastically reducing your monthly student loan payments BUT WATCH OUT!
This loophole can have some serious downsides so be sure to understand it fully before you consolidate your Parent PLUS loans to reduce your monthly student loan payments.
Links/videos mentioned:
⭐ Repayment options for parents with various loans from the state of Mass: www.mass.gov/i...
⭐ Parent PLUS Double Consolidation Loophole Explainer: www.studentloa...
⭐ Video walking you through how to do the Double Consolidation Loophole: • Parent PLUS Double Con...
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Heads up: All the content is for educational purposes only. Ms. Moody is not a licensed financial advisor; she’s a librarian, money nerd, and educator. As personal finance is personal, to find out what is best for you, consult a financial professional. Users are solely responsible for any actions they take.
This video is protected under US Copyright law. If you would like to reuse any of it for your own work, you must have explicit permission from the creator (Ms. Moody). Please contact me for permission before using any part of the video.
Chapters:
00:00-00:55 - this video is about the Parent Plus Loophole
00:56 -1:45 - APOLOGIES for not getting this to you sooner
1:46-2:40 - What is the Parent Plus Double Consolidation Loophole?
2:41-3:11 - The BIG Benefit of the PPL Double Consolidation Loophole
3:12 - 4:22 The catch with the PPL Loophole
4:23 - 6:28 How to do the Parent PLUS Double Loan Consolidation

Опубликовано:

16 авг 2024

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Комментарии : 55

@allkindsamusicchick 8 месяцев назад

Wow!! So kind of you to put this video out there. As I've said....I will be binge-watching this weekend. What a Great Gal, you are!! Thanks soooooo much!!

@themoneylibrarian 8 месяцев назад

Hi @allkindsamusicchick - thanks for your kind words! hope the vid helps, thanks for watching! -k

@themoneylibrarian 8 месяцев назад

If you're looking to reduce your monthly payment on your Parent PLUS loans, will you be trying this double consolidation loophole to reduce your student loan payments?? Let me know! Hope you liked the video! -k

@tammyboyette6693 7 месяцев назад

yes - gonna give this a try!

@collegesmart8571 8 месяцев назад

This is such a good video, I even laughed at the end! I'm a former financial advisor turned college planner, so this pushes a whole bunch of nerdy buttons in my brain. Keep up the great job educating people!

@themoneylibrarian 8 месяцев назад

Hi @collegesmart8571 - thanks for the kind words, glad you enjoyed the video and it pushed some nerdy buttons (hopefully in the good way!)! Thanks for watching! -k

@NicolasMendez-ff8ti 7 месяцев назад

This video is a saving grace for me!! Half of my debt is under parent plus loans, and being just out of college this loop hole may just workout for me! Since I am right out of college I don’t have to worry about the big con of erasing my payment progress

@themoneylibrarian 7 месяцев назад

Hi @NicolasMendez-ff8ti - that’s great!! So happy this will help with the Parent plus loans - It’s a fantastic hack to help open up way more payment options. Thanks for watching! -k

@NicolasMendez-ff8ti 7 месяцев назад

@@themoneylibrarianQuick question, what’s the risk of not qualifying for consolidation the third time? My only worry is getting stuck with 3 separate loan providers if I can separate my loans into two more groups

@themoneylibrarian 7 месяцев назад

Hi! It’s unlikely if you follow the directions in the links I provided in the description. You can only consolidate like loans with like (only parent plus with parent plus, only unsubsidized with unsubsidised, etc). Hope this helps! -k

@RadioRahimG 8 месяцев назад

all payments will count if you do it by end of 2023, you will not lose your payment count. The special waiver is still in place.

@themoneylibrarian 8 месяцев назад

Hi @rgresham217 - yes, if you consolidate by the end of this year (within the next couple weeks) you will keep your payment count. Thanks for watching! -k

@AmyLopez-q4g 21 день назад

Thanks soo much for your video! I have 7 PP Loans and im still very confused as to how to do all of the consolidating 😢 I definitely want to use the loophole but im uncertain as to where i even start. Would I need to take 3 of the loans and consolidate those and then take the other 4 and consolidate those? Then do my final consolidation?

@themoneylibrarian 20 дней назад

Hi! You 💯 got this!! I know it sounds confusing but once you wrap your head around it, it’s fairly simple. Check the links in the video notes for other explanations and how to’s. Your plan to consolidate the 3 together and then the other 4 sounds solid to me - then you’ll be left with two loans that you do the second consolidation with. Good luck, thanks for watching, and please share with friends who may be in the same boat! -k

@ericanton4792 6 месяцев назад

Hi Awesome video. I’m in a situation where I have been splitting the payment with my parent but they won’t pay their half until they “see a light at the end of the tunnel” which this video has provided, so thank you so so so much. My questions are: Since we have missed payments will I still be able to consolidate and enter into SAVE with a current balance owed? If so would you happen to know if the now snowballed balance due will be adjusted accordingly or will we need to pay that lump sum off first. Thank you for your time. Subscribed and will be sharing.

@themoneylibrarian 6 месяцев назад

Hi @ericanton4792 - I assume you could still consolidate if you have a few missed payments given the "ramp up" period that's going on now, but I don't know your history so you would have to contact your loan servicer to find out - expect to be on hold a LONG time so have something else to do while you wait and keep good notes because the servicers don't always give out correct information 🫠. I assume that whatever the current balance is, is what the consolidated balance will be but again, you'll have to speak with the servicers to find out. Wish I could give you more concrete information but personal finance is personal. Good luck and let me know how it goes!!!!! -k

@ericanton4792 6 месяцев назад

@@themoneylibrarian thank you so much!

@ericanton4792 6 месяцев назад

@@themoneylibrarian I found a small section in the request for payment plan form which is required when consolidating. It says that if there is a balance owed when consolidating and the borrower chooses to change their payment plan the servicer can defer a specific amount at the request of the borrower but the amount is subject to interest capitalization at the end of deferment. EX: changing from standard to extended. I’m not sure how this would work if the balance continues to grow while the consolidation goes through. Also not sure how the balance is handled but I would assume it’s handled loan by loan since interest rates vary before consolidation. I would verify this since I don’t really understand some of the language used, but might help people with similar questions.

@themoneylibrarian 6 месяцев назад

Hi! Dang, I love finance and even my head gets spun around with some of this lingo! From what you’ve said here, it sounds like if you (the borrower) want to defer some of the balance for later, they just want you to know that it will still accrue interest. I assume the interest would go loan by loan. Of course, I recommend you always speak with your loan servicer to get the most accurate explanations, this is just my best guess based on your comment. Hope this helps and good luck with the rest of the process!! -k

@Dawgo364 3 месяца назад

Hello...thank you for providing this information. Where do we go to get the forms to do the paper consolidation? When I do a search it's all about refinancing, is that what this is?

@themoneylibrarian 3 месяца назад

Hi! You can find the paper consolidation forms here under the FAQ question about paper forms: studentaid.gov/loan-consolidation/ This is NOT refinancing - consolidation is taking multiple loans and making them one. I have a video coming out next week on the difference between consolidation and refinancing; if you want to get notified on that be sure to subscribe and hit the bell. Thanks for watching and good luck! -k

@user-dx3xz4dh5s 6 месяцев назад

I'm still being denied to be put on Save even after the double consolidation. I've uploaded the IDR Save payment plan and was denied

@themoneylibrarian 6 месяцев назад

Hi! Sorry to hear this, it isn’t unusual for these things to take a few weeks for all the paperwork to go through. Your loan servicer can look into the case and let you know the status. When you call be sure to have something else to do as the wait times can be hours!😤 Good luck and thanks for watching! -k

@DanielaGardois 3 месяца назад

What I would do/pay to hop on a zoom call so you could help me figure out all this loan mess I have!!!

@themoneylibrarian 3 месяца назад

Hi @DanielaGardois - I offer hour meetings but they are not free. I recommend you contact your loan servicer or the department of Ed as they are paid by the gov to help you out before you pay any third parties - especially since I do not have access to your loan history, so the information I provide based on what you say may not be accurate. 🧐 If you do want to set up a meeting, you can set one up here: app.acuityscheduling.com/schedule.php?owner=17405040&appointmentType=33484278 But again, there are A LOT of free free resources for you. Thanks for watching and good luck! -k

@toni93095 7 месяцев назад

Quick question, the forms we print off have an expiration date that has passed….. is that a problem

@themoneylibrarian 7 месяцев назад

Hi @toni93095 - it’s crazy! The expiration date is in 2022 but since people have been successfully using it for the past year, I *assume* it’s fine. You could call the loan servicers and ask if they have an updated form, but I haven’t seen a consolidation application that’s updated. Prepare to be on hold for a while though😕 Good luck and let me know how it goes! -k

@jennicraft9886 5 месяцев назад

If I already took my original 4 parent plus loans and consolidated them years ago to 1 Direct Consolidated Unsubsidized loan, am I hosed? I was told that doing that would convert them to a DL that would act like any other DL and that has not been the case. I am denied many of the IDR plans and the SAVE plan because this new direct loan still has the "stink" of the parent plus on them as you put it. :) Am I forever left with this stink or do I have any options left? I do have two other loans that were for my own college (a Direct Consolidation Subsidized and a Direct Consolidation Unsubsidized). Could I consolidate the tainted parent plus direct loan with either of my other ones and would that get rid of the PP stink?

@themoneylibrarian 5 месяцев назад

Hi @jennicraft9886 - There is hope! According to the website below you should be able to consolidate all the loans to wipe the last of the PPL stink off your loan! See their Scenario 2 as it sounds like what you're going through (www.mass.gov/info-details/repayment-options-for-parent-plus-loans) If you decide this is right for you, you may wan to do this as soon as possible, as there is an IDR recount deadline with consolidation loans of April 30th (see my last week's vid for more info on that: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE--wytjZvqafs.html) Good luck and thanks for watching! -k

@jennicraft9886 5 месяцев назад

@@themoneylibrarian I am so glad I stumbled on your videos! You explain so well! I just watched your other video you recommended and it sounds like the consolidating before that April deadline would be good for me. I am 48 months into PSLF (government employment). All 3 loans have the same count. I'm just so afraid of doing anything that will wipe out those years of credit. Additionally, what if I consolidate into 1 single loan and it doesn't in fact get rid of the parent plus stink afterall and now I've tainted all my loans and then none of them qualify for the IDR plans. Ugh! Still so confused. That website for mass.gov isn't opening for me. So just to recap, I have MY loan 1 - DL Consolidated Subsidized, MY loan 2 - DL Consolidated UnSub and then the 3 - DL Consolidated which holds the PP stink. All 3 loans have always been on either IBR or ICR in order to be on PSLF and they have 48 months credit. From your last video, I'm gathering that this would all meet the criteria to consolidate into ONE single loan before the recount and I would get rid of PP stink and have all the IDR options (including SAVE) available to me, yes? Lastly, all 3 loans are Mohela, do I pick Mohela has the servicer for the consolidation or does not trick the system to get rid of the PP stink? OMG! I just need to hire you as a personal advisor! LOVE YOUR VIDEOS!!!

@jennicraft9886 5 месяцев назад

@@themoneylibrarian I am so glad I stumbled on your videos! You explain so well! I just watched your other video you recommended and it sounds like the consolidating before that April deadline would be good for me. I am 48 months into PSLF (government employment). All 3 loans have the same count. I'm just so afraid of doing anything that will wipe out those years of credit. Additionally, what if I consolidate into 1 single loan and it doesn't in fact get rid of the parent plus stink after all and now I've tainted all my loans and then none of them qualify for the IDR plans. Ugh! Still so confused. That website for mass.gov isn't opening for me. So just to recap, I have MY loan 1 - DL Consolidated Subsidized, MY loan 2 - DL Consolidated UnSub and then the 3 - DL Consolidated which holds the PP stink. All 3 loans have always been on either IBR or ICR in order to be on PSLF and they have 48 months credit. From your last video, I'm gathering that this would all meet the criteria to consolidate into ONE single loan before the recount and I would get rid of PP stink and have all the IDR options (including SAVE) available to me, yes? Lastly, all 3 loans are Mohela, do I pick Mohela has the servicer for the consolidation or does not trick the system to get rid of the PP stink? OMG! I just need to hire you as a personal advisor! LOVE YOUR VIDEOS!!!

@themoneylibrarian 5 месяцев назад

Hi @jennicraft9886 - Thank you for such kind words, I'm so happy my vids are helpful! This link should work, give it a shot to see your scenario, that should make you feel better about consolidating (they lay out your situation in scenario 2): www.mass.gov/info-details/repayment-options-for-parent-plus-loans I don't work for your lender or the Dept of Ed so I can't *guarantee* anything. That said, from everything I know of your situation, consolidating everything together before April 30th should allow you to access all of the IDR payment plans (including SAVE!) with your new consolidated loan AND keep your PSLF-qualifying months - so ALL the loans now have those 48 months towards PSLF. (As I said in the other vid, your PSLF count will drop to 0 after consolidating - THIS HAPPENS TO EVERYONE! Give it time and it'll bounce back to where it was.) You can call your loan servicer/Dept of Ed and ask them if this second consolidation will allow you to access SAVE with the new consolidated loan AND keep your PSLF-qualifying months. That said, *take good notes!* - who you speak with, what they say, date, time, in case it doesn't work out as they say so you have data to make a complaint with. (this is worst-case scenario, chances are it'll be fine) If after talking with them, you still aren't sure, you could consolidate only one of your PSLF-qualifying, personal student loans with your PPLs, leaving you with a consolidated loan and a Direct loan. If it doesn't work, then you'd not put all of your eggs in one basket. Hope this helps and thanks for watching! -k

@volcom2838 4 месяца назад

@@themoneylibrarian hello I’m in the same position with early consolidation of my 4 plus loans years ago. However, I have 2 other loans in my name which I’m hoping I can use to use the loophole work around. The link you provided seems to not be working now unfortunately though. Would you happen to have and updated link I could reference for consolidation? Thanks for your help!

@toni93095 7 месяцев назад

Hey some of the PPLs are under my social and some under my husbands can we combine all those and consolidate

@themoneylibrarian 7 месяцев назад

Hi @toni3095 - great question, the rules around marriage and student loans have been changing a lot over the past couple years. You’ll have to call your loan servicer (expect long delays) and ask them. That said, take careful notes in case they steer you wrong (rare but it happens enough that if you need to make a formal complaint you’ll need this info) Wish I had more of a concrete answer for you but I’d rather err on the side of good suggestions than tell you something that’s incorrect. Thanks for watching! -k

@jayjay4861 5 месяцев назад

I’m just curious why you say it has to be different loan servicers? I’m with 1 and I haven’t had a problem yet.I have 4 parent plus loans and I combined 2 into 1 direct loan..now I’m in the process of combining the last 2 ppl into 1 direct loan so I can then consolidate them into 1 loan for the save..But the loans are all with aidadvantage and they actually have been helping me with the process.

@themoneylibrarian 5 месяцев назад

Hi @jayjay4861 - It is my understanding that by using a different servicer it will get rid of the "residue" of the Parent PLUS loan so it will have access to all repayment plans. It could be that since this is a loophole this is simply a safeguard and not necessary. I'd love to hear from you if doing all two consolidations through the same servicer open up the other IDR payment plans! Thanks for letting me know you've had a good experience with Aidvantage! People complain (a lot!) about their servicers so I love to hear someone had a good experience. Thanks for watching! -k

@sandykolata6329 7 месяцев назад

I have 3 parent plus loans is there a pathway for me to still do double consolidation? I can consolidate loans #1&2 together, but what about loan #3 nothing to consolidate with?

@themoneylibrarian 7 месяцев назад

Hi @sandykolata6329 - from what I understand, you can consolidate with as few as two PPLs. Check the links in the description for more details but I believe you can combine 1&2 and then “consolidate” the 3rd by itself. Thanks for watching and let me know how it goes! -k

@user-pp5iv9nu5l 6 месяцев назад

Anyone know if I SHOULD choose Mohela as my final servicer if the two consolidations I recently got approved were through Nelnet and Aidvantage, and I’m pursuing the final consolidation of these two consolidations for PSLF? I think PSLF can only be inside of Mohela, but in the video she says not to choose Mohela after the initial two consolidations are approved. I’m using the Parent Plus double-consolidation loophole AND seeking PSLF.

@themoneylibrarian 6 месяцев назад

Hi! Mohela is the servicer for PSLF, so it would make sense to choose them for the final consolidation. As long as the third servicer is different than the first two, you should be good but I’d watch the vids I link to in the description for a deeper dive on the actual process. Thanks for watching and good luck! -k

@xursssulaxx 3 месяца назад

MOHELA IS TERRIBLE. do not use them. i got stuck with them and they messed things up. i just graduated like 2 years ago and yeah its been a mess with them! they’re literally being sued by the government

@patrick39432 7 месяцев назад

Ive been told the two initial paper consolidations have to go to two different loan servicers. How does this work if i only have 2 parent plus loans? Thank you🙂

@themoneylibrarian 7 месяцев назад

Hi @patricko3943 - I believe for the first round you send one loan to each servicer to be consolidated. Seems odd since you aren’t combining loans but should work. You can use the links I have in the description for more info as I believe they discuss this situation more. Good luck and thanks for watching!-k

@LordVoldemort31 4 месяца назад

What if my parent only has one Parent Plus Loan and two personal loans? Is this double consolidation still possible?

@themoneylibrarian 4 месяца назад

Hi @LordVoldemort31 - hi! you need at least two Parent Plus loans in order to do the double loan consolidation. Wish I had better news for you. Thanks for watching and good luck! -k

@user-hc7xm5ot6g 5 месяцев назад

I need to do this...but I am still confused! I have MULTIPLE PP loans for 2 kids! Can I consolidate the ones for one kid on paper, and then the other kid's online or do I mix them all up?

@themoneylibrarian 5 месяцев назад

Hi @user-hc7xm5ot6g - I believe you should be able to consolidate them all as these are all your loans, even if they were for different kids. The links I included in the description go into more detail for how to do this, plus this page is very useful: www.mass.gov/info-details/repayment-options-for-parent-plus-loans Good luck, let me know how it goes, and thanks for watching! -k

@coffeecrazy70 7 месяцев назад

If you only have 2 loans can you do the first step/consolidation online?

@themoneylibrarian 7 месяцев назад

Hi @coffeecrazy70 - You can do the first step online but to get your previous payments to be counted (they just made an announcement that you have through summer 2024 to have previous payments count, as I mentioned in the vid this info changes all the time - even I didn't expect it to change that fast!) you would need at least one round on paper as they only allow online consolidations every 6 months. The info I found when researching this vid recommended people do the first round on paper, there may be other reasons why once you get into the nitty gritty of the actual process. There's a lot of info on Reddit (proceed with caution) and online (I linked to a few place in the description) that may shed some more light on the benefits/drawbacks of doing the first round online. Thanks for watching! -k

@TheNotoriousJP 5 месяцев назад

Is this doable while my kid is still in school? She graduates next May. Would starting the process next May be too late to start?

@themoneylibrarian 5 месяцев назад

Hi @TheNotoriousJP - I am unable to find documentation on consolidating PPLs while the child is in school. I'd call your loan servicer and ask them if you can consolidate but beware, there are a lot of horror stories online of getting bad information, so you may want to call a couple times and talk to a few different people in case you get bad info. (I know, it's ridiculous) Starting the process next May would be cutting it REAL close (it can take 4 months) in order to get on SAVE as this loophole will be closed July 1, 2025. See this page for more info: www.mass.gov/info-details/repayment-options-for-parent-plus-loans All that said - THERE IS HOPE! - Student loan rules have been changing for the better every few months. Just because the rules may not favor you now, doesn't mean they won't change and be better later. Keep an eye on the news and this channel to stay up to date. Thanks for watching! -k