Double Consolidations Still Working for Those with Parent Plus Loans?

So you may have heard by now that all consolidation applications are being processed by Aidvantage.  The online system is completely frozen.  And that most people are being placed into forbearance while the system is frozen.  Just last week, the Department of Ed asked one of the courts for clarification of its injunction order and was told that no clarification would be forthcoming.  So we wait.  The U.S. Supreme Court will have to rule on all this.

It’s important to still move forward however.  If SAVE survives the court challenges, you want to have your Parent Plus loans in place ready to be placed into SAVE.  Even if SAVE doesn’t survive, perhaps one of the other IDR plans is better than ICR.  How do you move forward with the online system stuck, and only one servicer processing paper consolidation applications?

The key is to use snail mail – send half to Aidvantage, wait 45 days until the consolidation is done.  Then send the second half to Aidvantage to consolidate using snail mail.  Wait 45 days.  Then recombine all the Parent Plus loans in a final consolidation application sent to – you guessed it – Aidvantage.

Paper applications are being processed, even though online applications are not.  By doing them one batch at a time, you’ll avoid Aidvantage combining them all in the first consolidation.  I don’t know of any way to undo that.  And you’ll never make these Parent Plus loans eligible for SAVE.  You have until July 2025 – this will take roughly 45 x 3 days or 135 days total.  You have time for this.  Send your apps with tracking numbers.  Technically, with the 400 odd pages of regulations on hold now with these injunctions, even the deadline to complete a double consolidation is no longer in place.  But pretend that it is – it’s safer that way.

Aidvantage

PO Box 300005

Greenville, TX 75403-3005

Phone:  800-722-1300

I know it may sound complicated, but it’s working and it’s legal.  And don’t forget, if your health makes it difficult for you to work, then reach out to us.  There may be a much better way to get a discharge of these loans that has nothing to do with SAVE or the various injunctions and court/election battles.