Exactly all the recommendations for Pat was on point. And that was route I went - SAVE plan, PSLF have 30 payments left, and have increased my 401k and FSA to keep my payments low and affordable. I worked it that my 2023 AGI is even lower than my 2022 AGI. Which means I expect my payments to go even lower than current. All my raises (2 times a year) I take and increase my 401k to stay in range of my 2022 AGI for my monthly budgeting. Also, I took advantage and received “A LOT” of one time adjustment credits that enabled me to be able to see the light at the end of the tunnel. I wish Grandad Bernie and Aunt Elizabeth can get them to lower the number of years required for PSLF from 10 to 5. Most employers in private sector who pay for your education have only a 2 and 3 year requirement to work for them after paying for your education.
My dad, who is now retired and living back in Chile has a Parent PLUS loan and because he is retired and only living on his Social Security, what is the best path for him to either lower payments or forgiveness? He is also battling with prostate cancer and parkinsons right now :(
Love your Friday Q&A Content!!! keep it coming. I meet the Criteria for having a loan under $12k and in repayment off and on for almost 30 years..Would it make sense for me to shoot for the Save plan or does it matter what plan?? What about the one time adjustment waiver? Thanks always!!
You would need to be in the SAVE Plan to get the under $12k forgiveness. But keep in mind, that forgiveness is based on you having borrowed $12k or less -- not your current loan balance.
So I have a federal loan under my name and a parent plus loan under my mother’s name. Should i consolidate my mother’s parent plus loan into two parts and consolidate mine with my one of the parent plus loans and then consolidate those two? and or how do I go about this and is it too late?
I'm on a SAVE plan. It says my loan timeline goes up to 2036. I have $13,000 in loans. If I graduated in 2019 shouldn't the timeline start at 2019 and go up to 11 years from there? Since I borrowed 1k over the 12k? Meaning my loans should be forgiven in 2030 not 2036? Thanks.
I have commercial FFEL consolidation loans ( not Dep Of E) and I apparently need to consolidate. My earlies loans go to 6/1998. When i got to the Dep of E website and choose a IDR my payment goes up due to my income. (risky) The website is saying im eligible for 0 dollars forgiveness.... Is this a glitch? I found a internet article saying this will be corrected for PSLF but is this true for the one time account adjustment for IDR?
Possibly. Depends on your income and family size. You can estimate your new monthly payment before consolidating. Use the Loan Simulator in StudentAid.gov.
I just consolidated my 1 parent plus loan, how long before I can consolidate it again so that it is eligible for the save program? My other student loans are already under the save program, and I also just applied for the public service student loan forgiveness.
Hey there! I have a Parent Plus loan and I have not started the double consolidation loophole process yet. If I file for the first half of the double consolidation loophole before April 30th, 2024, would I receive the recounting credit? Meaning I would file for my Parent Plus loans to be split into two different consolidation loans at two different loan services before 04/30/2024. If I do this first step before 04/30/2024, would I be eligible for the recounting benefit for my consolidated Parent Plus Loan?
You likely wouldn't get the full benefit. Your final consolidation loan may end up getting credit based on the weighted average of the credit you had for each loan. This situation gets a bit more complex, admittedly.
Words cannot describe my disappointment... Today was supposed to be the happy day I've been looking forward to for months. After months of successfully working through the double consolidation process today I receive notification that I am officially on the SAVE plan. Unfortunately, my payments have doubled. I was paying right around $300 a month, now that I'm on the SAVE plan my monthly payment has jumped to $643 a month. Needless to say, I am beyond frustrated. Apparently I would have been better off had I not done anything at all. This sucks beyond belief. I was hoping to start saving some money instead I'm going to be even more broke than usual.
Man I’m sorry. I am actually at the final stage now and this makes me worry. The first two phases of the double consolidation brought down my payment considerably. I am so concerned that it would go in the other direction.
What is the value of the one-time adjustment for the Parent Plus Loans? Will it vary from person to person, loan amount to loan amount, or is it a 'fixed' one-time absolutely guaranteed adjustment value?? Thanks in advance....
Parents who still owe loans from their own education will often get greater value out of the one-time account adjustment than other parents. But no matter your status, the one-time adjustment is a bonus for all parents.
Ironic in light of MOHELA scandal...
excellent exercise thanks
Exactly all the recommendations for Pat was on point. And that was route I went - SAVE plan, PSLF have 30 payments left, and have increased my 401k and FSA to keep my payments low and affordable. I worked it that my 2023 AGI is even lower than my 2022 AGI. Which means I expect my payments to go even lower than current. All my raises (2 times a year) I take and increase my 401k to stay in range of my 2022 AGI for my monthly budgeting.
Also, I took advantage and received “A LOT” of one time adjustment credits that enabled me to be able to see the light at the end of the tunnel.
I wish Grandad Bernie and Aunt Elizabeth can get them to lower the number of years required for PSLF from 10 to 5. Most employers in private sector who pay for your education have only a 2 and 3 year requirement to work for them after paying for your education.
May I ask...is the determined Discretionary income after your 401k contributions are subtracted? or before?
My dad, who is now retired and living back in Chile has a Parent PLUS loan and because he is retired and only living on his Social Security, what is the best path for him to either lower payments or forgiveness? He is also battling with prostate cancer and parkinsons right now :(
Love your Friday Q&A Content!!! keep it coming.
I meet the Criteria for having a loan under $12k and in repayment off and on for almost 30 years..Would it make sense for me to shoot for the Save plan or does it matter what plan?? What about the one time adjustment waiver? Thanks always!!
You would need to be in the SAVE Plan to get the under $12k forgiveness. But keep in mind, that forgiveness is based on you having borrowed $12k or less -- not your current loan balance.
Yes...I borrowed about $10,500.00
So I have a federal loan under my name and a parent plus loan under my mother’s name. Should i consolidate my mother’s parent plus loan into two parts and consolidate mine with my one of the parent plus loans and then consolidate those two? and or how do I go about this and is it too late?
I'm on a SAVE plan. It says my loan timeline goes up to 2036. I have $13,000 in loans. If I graduated in 2019 shouldn't the timeline start at 2019 and go up to 11 years from there? Since I borrowed 1k over the 12k? Meaning my loans should be forgiven in 2030 not 2036? Thanks.
I have commercial FFEL consolidation loans ( not Dep Of E) and I apparently need to consolidate. My earlies loans go to 6/1998. When i got to the Dep of E website and choose a IDR my payment goes up due to my income. (risky) The website is saying im eligible for 0 dollars forgiveness.... Is this a glitch? I found a internet article saying this will be corrected for PSLF but is this true for the one time account adjustment for IDR?
When you consolidate, would the consolidated loan payment ever be bigger than the total of the individual payments?
Possibly. Depends on your income and family size. You can estimate your new monthly payment before consolidating. Use the Loan Simulator in StudentAid.gov.
Can I do the double consolidation while my kid is still in school? She graduates December 2025.
I just consolidated my 1 parent plus loan, how long before I can consolidate it again so that it is eligible for the save program? My other student loans are already under the save program, and I also just applied for the public service student loan forgiveness.
There's no time limit that you must wait before filing the second.
I'm all ears! PS Thanks for the Starbucks! Okay....back to listening in!!
Hey there! I have a Parent Plus loan and I have not started the double consolidation loophole process yet. If I file for the first half of the double consolidation loophole before April 30th, 2024, would I receive the recounting credit? Meaning I would file for my Parent Plus loans to be split into two different consolidation loans at two different loan services before 04/30/2024. If I do this first step before 04/30/2024, would I be eligible for the recounting benefit for my consolidated Parent Plus Loan?
You likely wouldn't get the full benefit. Your final consolidation loan may end up getting credit based on the weighted average of the credit you had for each loan. This situation gets a bit more complex, admittedly.
@@stanleytate thank you!
Words cannot describe my disappointment...
Today was supposed to be the happy day I've been looking forward to for months. After months of successfully working through the double consolidation process today I receive notification that I am officially on the SAVE plan.
Unfortunately, my payments have doubled. I was paying right around $300 a month, now that I'm on the SAVE plan my monthly payment has jumped to $643 a month. Needless to say, I am beyond frustrated. Apparently I would have been better off had I not done anything at all. This sucks beyond belief. I was hoping to start saving some money instead I'm going to be even more broke than usual.
Man I’m sorry. I am actually at the final stage now and this makes me worry. The first two phases of the double consolidation brought down my payment considerably. I am so concerned that it would go in the other direction.
What is the value of the one-time adjustment for the Parent Plus Loans? Will it vary from person to person, loan amount to loan amount, or is it a 'fixed' one-time absolutely guaranteed adjustment value?? Thanks in advance....
Parents who still owe loans from their own education will often get greater value out of the one-time account adjustment than other parents. But no matter your status, the one-time adjustment is a bonus for all parents.
Good overview!!