The Double Consolidation Parent Plus Loophole

[@peterkim7640]

so my loans og from nelnet. I consoldated it into Mohela and Aidadvatage. Can I do my last one beack to nelent?

[@EscapeStudentLoanDebt]

Absolutely, you can send them right back to Nelnet if you like. Hope this helps!

[@peterkim7640]

thank you! yes it does. I just thought since I already been with them thye wont do the SAVE plan when are send it right back. @@EscapeStudentLoanDebt

[@PeterKim-x3q]

wait I did my consoldation with aidvantage and Moohela. Can double consoldate it into Nelnet?

[@PeterKim-x3q]

also I got a letter from both of them. But when I log into my FAFSA one of them is still there? does it take time?

[@EscapeStudentLoanDebt]

Yes, you can send the last consolidation to any other servicer you'd like besides those two

[@rebeccashinneman9850]

How do I do this with only 3 parent plus loans with Advantage?

[@EscapeStudentLoanDebt]

As odd as it sounds, you can consolidate a single federal student loan, as long as the loan isn't already a consolidation loan. So for the double loophole, you could have one loan represent the first group, and the other two can be a second grouping, and you'd still be ok. hope this helps!

[@seannasmith5365]

I have 3 parent plus loans with Aidvantage...do I send 2 to Nel et servicer and the 3rd to Mohela...and then the final consolidation back to Aidvantage?

[@EscapeStudentLoanDebt]

You can if you'd like Aidvantage to be the place where the final consolidated loan ends up. If you're pursuing public service loan forgiveness then you'd want MOHELA to be the final landing spot.

[@FloCataneo]

I have completed 2 paper consolidations and now it's time for the final step online consolidation but online it does not allow you to choose IDR/Save only ICR for the last consolidation. I understand you said the final consolidation needs to go through for the plus loan to be removed but then what do you choose when you are doing the final step? ICR and then once completed with ICR ask to be taken off ICR and placed on SAVE. What do you actually choose on the on the online consolidation app?

[@EscapeStudentLoanDebt]

You're doing everything right with the online app. The reason it only shows ICR as your option is until it's refinanced for the final time, it's still looking at a loan that's currently a consolidated Plus loan. So just pick any plan to get through the application, and then once your final loan is established and has dropped the Plus status, you'll be able to switch your payment plan to any available option. Hope this helps!

[@lauriecornetta748]

I have same question. Once you’ve done final consolidation online and it’s complete how exactly do you apply for SAVE?

[@FloCataneo]

@@EscapeStudentLoanDebt I have completed all steps starting with original loans were at mohela, did paper consolidation to nelnet and advantage then the final online consolidation back to mohela consolidation is complete but still no online option to join save plan. only the ICR. What can I do?

[@latonyarobinson4138]

@@FloCataneo Can you provide an update? Did this ever work for you? I don't wanna waste my time if this doesn't even work!

[@sharonjohnson4324]

Hi, what if I only have 2 parent plus loans. & they are with Mohela. Can I consolidate them say to Nelnet, then when approved, transfer back to Mohela? Would that work for the double loop?

[@EscapeStudentLoanDebt]

Apologies for the delayed response! Yes this would work, except on the initial refinance, you need to find an additional loan servicer to send the loan two. It has to be at least two separate lenders, so you can consolidate them back together at the end

[@meishamcdaniel5643]

Hey, can you please help me? Can you please walk me through the steps of how to do the process with only two Mohela parent plus loans?@@EscapeStudentLoanDebt

[@PeterKim-x3q]

when you do the last consoldation. Do you do it from FAFSA? or?

[@EscapeStudentLoanDebt]

You complete the last consolidation on studentaid.gov, hope this helps!

[@ChristianG88]

What if I only had two PPLs and consolidated those into loan servicer (nelnet)? Do I send another paper app in and do another ICR and then SAVE plan via online?

[@EscapeStudentLoanDebt]

Thanks for watching Christian. There has to be at least two separate Parent Plus loans for this to work, so that they can be sent to different servicers. If you only have the one consolidated parent plus loan, Unfortunately you wouldn't be able to do the double consolidation

[@ChristianG88]

@@EscapeStudentLoanDebt is there anything I can to do get into save? Is the ICR my best option?

[@meishamcdaniel5643]

Hey Christian, did you still need help with this? I'd say lets figure out a way to get you to forgiveness. Don't give up on this. Did you figure it out?@@ChristianG88

[@SuperPeters10]

Could you do this with 3 PPL?

[@EscapeStudentLoanDebt]

Yes, as long as there are at least two PPL loans it can work. You just need to separate the 3 loans into two separate categories so you can consolidate with two loan servicers

[@alexyokiel4493]

If all the parent plus loans are under aidvantage, can I use them for the initial consolidation? So say aidvantage for half, nelnet for the other half then mohela for the final one?

[@amityvanhoose182]

you should use 2 new servicers for the first consolidation is what i was told

[@EscapeStudentLoanDebt]

Correct. If you want the loans to end at aidvantage on the final step, they can't be one of the servicers you use for the paper consolidation apps

[@georgefahmy1318]

what if all of my parent plus loans are already assigned to neltnet as a servicer?

[@EscapeStudentLoanDebt]

As long as you have at least two parent plus loans, you can still do the double consolidation. You would simply use the paper apps to consolidate them again with two servicers other than nelnet

[@Nancy-bc9dy]

If I did one consolidation on line already and one by paper (in process) can it still work????

[@EscapeStudentLoanDebt]

Yes, you can consolidate a loan an endless number of times, and can even consolidate a single loan, unless that loan is ALREADY a consolidation loan. Example: you can include a previously consolidated loan in a new consolidation with other loans. You can also take a single (non-consolidation loan) and consolidate it by itself. But you cannot take a single consolidation loan and consolidate it by itself

[@chrisgroen9307]

If we have 2 kids we took parent plus out for, can we do this more than once, in order to keep them seperate? our kids are paying them....we are not.

[@EscapeStudentLoanDebt]

Yes, you can do it more than once as long as you have enough loans to separate them into groups. Also, if you're not trying to have them forgiven and your kids actually plan to pay them off in full, there are some private lenders who will refinance a Parent Plus loan into the kids name once they've established themselves financially. Thanks for watching!

[@patriciajoyner9871]

Do you have a list of lenders that will do this ? I have one ppl at 19,000

[@mathewthomas6585]

My daughter just started her undergrad this fall 2023. She will be graduating in the spring of 2027. I’m taking a parent plus loan for her studies. Would double consolidation help in my case to use the SAVE plan.

[@EscapeStudentLoanDebt]

Thanks for watching. Unfortunately because of the timing of her schooling, she wouldn't finish in time for you to complete the Consolidation by mid 2025, which is when the loophole closes. Loans that are deferred due to in school deferment can't be consolidated. The hope is that by the time the loophole closes maybe they open up some more options for Parent PLUS borrowers, but as of now the ICR plan is the only option. My apologies, I wish I had better news to share. But there are other tips we share on the channel to lower your payment regardless of the IDR Plan you choose

[@mathewthomas6585]

Thank you so much for the reply. I'll keep an eye on further videos from you.@@EscapeStudentLoanDebt

[@peterkim7640]

Do you think you can provide a step by step using a acually loan like nelnet. Im so confused

[@EscapeStudentLoanDebt]

We are actually releasing a step by step on Friday. If you subscribe to the channel and turn on the notifications for new videos, you'll get notified Friday morning as soon as it is posted. And thanks for watching!

[@amityvanhoose182]

When i try to do the last consolidation online at Studentaid the only repyament plan it allows is ICR. How do we sign up for an IDR plan if ICR is the only option available?

[@Hoopers2013]

You may be in the same predicament as me. I think you must have 2 loans to take advantage of the loop hole sadly!

[@amityvanhoose182]

@@Hoopers2013 i have 3 loans and have already consolidated them into 2 different loans by 2 different servicers. I am on the last step of the double consolidation loop hole where you consolidate those 2 separate loans into one online at Studentaid. And when i do that it only allows ICR to be chosen as repayment. No IDR is available to be chosen.

[@EscapeStudentLoanDebt]

You need to wait until the new loan is issued and THEN apply for the repayment plan. The system is looking at the loans that will be consolidated and seeing that they're PLUS loans, which are only eligible for ICR. But once it's consolidated a second time, the PLUS status will be removed and you'll then be free to apply for another plan. Hope this helps!

[@FloCataneo]

@@EscapeStudentLoanDebt Do you choose the icr and then once consolidation is complete ask to be taken off icr and placed on SAVE or do you choose nothing on the online consolidation app?

[@saragardy4130]

@@EscapeStudentLoanDebt I did this as well (I had 3 loans, 2 direct and 1 PLUS, I consolidated a direct loan and then consolidated a direct and PLUS. Nelnet emailed me saying that they were not able to consolidate the direct and PLUS loan and that the PLUS loan was excluded because it was taken out by a different person (the parent), so it is not eligible. Have you seen this?

[@patrick39432]

So we have an FFEL spousal consolidated loan and parent plus loans for my daughter. I'm working to separate the spousal loans for new direct loans and want to consolidate the parent plus loans. Advice on the order in which I should do this, and can I ultimately have just one loan someday? I know, very messy!

[@EscapeStudentLoanDebt]

It's crazy how complicated the process is, I know. The application to separate spousal Consolidation loans isn't available yet, so the first step is to contact the Ombudsman for the department of education and let them know you intend to separate the loan. Doing that will ensure you're notified when the application is available. The good thing is if you have multiple parent plus loans, you can start the double consolidation for those loans and just not include the spousal consolidation loan. So you can work on the double consolidation while you wait to separate the other loan, and it should be completed by the time you can do so. At that point, you can consolidate all of the loans together again if need be, or you can keep them as is because all should at that point be eligible for any payment plan you choose. I know that's a complicated answer to a complicated question but I hope it helps! And thanks for watching! We've gotten a couple questions on this so Brenton will likely do an episode on it soon

[@mathewthomas4655]

My daughter entered college this fall. Do i have wait till she graduates (2027 spring) or i can do the double consolidation before July 1st 2025?

[@EscapeStudentLoanDebt]

Unfortunately, you can't consolidate while she's still in school. That being said, I'm not sure if you'd be able to do it in the summer while she's technically not enrolled. My apologies, I wish I had a better answer for you on this one, I just haven't come across a scenario of someone attempting to complete this during the schooling years.

[@Poprocster]

Does consolidation eliminate the death forgiveness benefit?

[@EscapeStudentLoanDebt]

Apologies for the delayed response, but no, as long as the loan is federal, it's forgiven at death

[@jesseraspler3700]

I consolidated my loans for child 1 and 2. My wife consolidated her loans for child 3. Can we then do the double consolidation to combine them together??

[@EscapeStudentLoanDebt]

The positive is that as long as each of you have grouped those loans into at least two categories, you can complete the double consolidation. What you can't do is combine the Plus loans in her name with the Plus loans in your name. You can only consolidate loans where you're listed as the borrower

[@KareemReacts]

Is it possible to get on a call with you to walk through this process?

[@EscapeStudentLoanDebt]

Hi Kareem, thanks for watching. Unfortunately, we don't have the capacity right now to do individual consultations. We are however re-recording our flagship course to cover all the new rules that have changed since the pandemic

[@AnnamarieMontreuil]

I am trying to fill out a paper Direct Consolidation Loan application form but line 13, line 14, and line 15 are all the same? Is this correct? line 13 is U. Line 14 is Nelnet Line 15 is my account which is the same for each loan???? Line 16 is the only one that will be different??? I just don't want to fill it out wrong

[@EscapeStudentLoanDebt]

Thanks for watching! We will actually have a video later this week walking you step by step through the paper app. Sorry for the teaser, but if you set your notifications on the page you'll be able to watch the video and Brenton will address the codes and lines

[@romanbetancourt3629]

On the direct consolidation loan application it has a section on page 2 of 16 where it asks for loans that I do not want to consolidate. Do I list the other two parent plus loans that I plan on consolidating separately?

[@EscapeStudentLoanDebt]

Thanks for watching. We're releasing a video tomorrow with step by step instructions, and Brenton will be walking through the application on-screen. If you subscribe and turn on your notifications for new videos you'll be able to catch it and follow along. Hope this helps!

[@ericasheets9162]

I have PLUS loans from both parents separately, as well as my own personal loans. First, would I be able to do this on their behalf? Also, would you recommend including my personal loans as well, or would that not make a difference?

[@EscapeStudentLoanDebt]

Thanks for watching! Each of your parents would be able to do the double consolidation for the PLUS loans in their names (separately). You could technically do this on their behalf in terms of pre-filling the apps to make it easier, but they'll each have to sign the apps themselves. You unfortunately can't include your loans in that mix, because you can't group together loans from different borrowers. If you decide to pay off the Plus loans instead of pursuing forgiveness, there are some private lenders who will allow you to refinance your parents' Plus loans into a new loan in your name. Hope this helps!

[@Hoopers2013]

So is there anyway to double consolidate if you only have 1 parent plus loan?

[@EscapeStudentLoanDebt]

You could if you happen to have another student loan in your name. But if it's literally the only loan you have, you have to be able to have a second loan to complete the process. The reason for this is while you can consolidate a single loan, the one exception is for a Direct Consolidation Loan; you cannot consolidate a single Direct Consolidation loan, you have to have a second loan in order to do it.

[@allkindsamusicchick]

Do you provide a service to help guide parents..... with a little more hands-on....through this seemingly arduous process? Big sigh.

[@EscapeStudentLoanDebt]

Thanks for watching! Unfortunately we don't offer one on one services. Brenton is currently in the process of re-recording our flagship course, which will offer step by step instructions for many of our lessons. In the meantime, we're releasing a video tomorrow where Brenton will go through this application on-screen. If you subscribe and turn on the notifications for new videos you'll see it. And if you join our email list at escapestudentloandebt.com, you'll be first to know when the course is released. Hope this helps!

[@occ8879]

in addition to certified mail, can i fax and/or email & upload the consolidation application to the servicers? i have 2 kids in college now. #1 is graduating 5/24 and #2 is graduating 5/26. should i consolidate #2's PPLs now to take advatage of SAVE? thanks!