Yes. Most federal loans are eligible to be consolidated under a Direct Consolidation Loan, even if you consolidate only one loan. So, if you have 2 parent PLUS loans, you can still split them into 2 sets of one loan each.

No. Like the question above, you may only consolidate loans that are in your name. And, parent PLUS loans are always only in [one of] the parents’ names. This means, legally, you are solely responsible for paying off this loan. However, some private lenders allow children to refinance a parent’s parent PLUS loan. Keep in mind though, that refinancing with a private lender will:

1) Take the loans out of the Federal system. This means income-driven repayment options and forgiveness programs all go away.

2) You may still have to be a co-signer on the new refinanced loan. This means that you are still responsible for paying this off if your child can’t (or doesn’t) make payments.

Alternatively, many parents choose to set up an arrangement with their child, where the child makes the payments on the parent PLUS loans. This can apply when the payment is fixed for a specified number of years or based on the parent’s income.

Generally no. While most federal loans are eligible for Direct Consolidation Loans as only one loan, the major exception to this rule is consolidation loans. If you have a consolidation loan, you will need at least one other loan for double consolidation.

Alternatively, if your consolidation loan is less than 6 months old, you may be able to ask your loan servicer to undo the consolidation. While your loan servicer may not grant this request, it’s worth asking. This could reset your loans, allowing you to do the double consolidation process.

3-6 months. Each phase takes about 1-3 months to complete. Split into 2 phases, the full process typically takes 3-6 months.

Yes. However, it remains open through June 30, 2025. On July 1, 2025 the loophole will be closed. Your final consolidation loan must be completed before the July 1, 2025 deadline.

This is highly unlikely. The statutes now explicitly state that the double consolidation process is going away on July 1, 2025. This effectively ensures its existence until that date.

For reference, the Federal Register has this to say: "...a Direct Consolidation loan made on or after July 1, 2025, that repaid a parent PLUS loan or repaid a consolidation loan that at any point paid off a parent PLUS loan is not eligible for any IDR plan except ICR. "

Select ICR for now. This is a current glitch in the online system, as you technically should have more choices (at a minimum, you should be able to select the Standard or Graduated plans).

Once you complete your final consolidation, re-apply for your preferred IDR [or other repayment] plan.

Yes. The double consolidation process allows these loans to qualify for the more beneficial income-driven repayment plans, rather than being stuck in income-contingent repayment (ICR).

However, keep in mind that for borrowers where long-term forgiveness is an option, the Pay As You Earn (PAYE) plan offers the quickest time to forgiveness (20 years vs. 25 years for SAVE).

Borrowers have until July 1, 2024, to enter PAYE to take advantage of this shorter forgiveness period.

No. Only undergraduate loans and consolidation loans that paid off undergraduate loans qualify for the 5% calculation of income. All other types use 10% as the calculation. Parent PLUS loans, even after going through double consolidation, will get the 10% treatment.

However, if you have a mix of undergraduate loans, the actual percent used is the weighted average of your undergraduate loans (using the 5% standard) and all other types of loans (using the 10% standard).

25 years. The 20-year period applies to borrowers who only have undergraduate loans. The borrower must not have taken out loans for graduate school.

However, borrowers who work in the public sector or for a non-profit employer may qualify for the Public Service Loan Forgiveness (PSLF) program. This program offers forgiveness after 120 non-consecutive, total payments (10 years worth).

No. You may only consolidate loans that are in your name. If you and your spouse have at least 2 federal student loans, you can each do the double consolidation process simultaneously. If one (or both) of you have only one parent PLUS loan, that partner isn’t eligible for double consolidation.

You can start this now or wait until your child graduates. But, for borrowers who complete their second consolidation before December 31, 2023, their loan payment counts will be fully adjusted due to the IDR account adjustment.

If you apply for consolidation loans after the December 31, 2023 deadline, payment counts will only be partially adjusted (though not completely lost).

If your child won’t graduate before the end of 2024, you may want to start the double consolidation process before your child graduates. This provides the option to benefit from the double consolidation loophole before the July 1, 2025 cutoff (see above).

Yes. As long as all the loans you want to include in the double consolidation process are recorded at studentaid.gov, they can be restructured into a Direct Consolidation loan.

Consolidating your loan(s) takes them out of deferment and initiates the double consolidation process. This could be advantageous if you want to get your repayment count started, begin the process for the IDR account adjustment, or have a lower income this year to use for income-driven repayment.