Here's the situation...
Parents currently have several Parent PLUS loans with an average of 4 years remaining until 120 qualifying payments. They are currently on the extended repayment plan to lower the monthly payment. I don't know why they didn't consolidate to income-based at that point, but it seems likely the lender recommended the extended repayment.
It seems like trying to consolidate and move to income-based before the July 1 deadline is the best path if possible. However, when filling out the consolidation application it only allows for standard and extended repayment plans. I believe this is because they're currently on the extended repayment plan, but maybe this is just what everyone sees then you have to switch it over once the consolidation is complete?
Curious what they should do at this point, but also have a few other questions if anyone knows...
- What is the downside to completing the consolidation, if everything isn't finalized by the deadline? It seems like that would result in no PSLF while staying with the Parent PLUS loans would continue to accrue qualifying payments if they moved back to the standard payment plan.
- To complete the consolidation application, they would have to select a standard repayment plan which isn't eligible for PSLF. Does that mean the weighted average of eligible payments that have already happened is reset to 0 or that it just wouldn't continue to accrue (which is happening now with the extended repayment)?
- Is there anything that would make it worth considering buybacks? There are a few individual loans with <2 years left of qualifying payments needed. Seems unlikely, but not sure if you could buyback the time on the non-eligible extended payment plan