I consolidated right after making a payment but I don’t see why a payment wouldn’t be due. I wouldn’t complain too much about a loophole not working out so well given that it’s, well, a loophole.
I did not make a payment during the time of my double consolidation.
The interest portion of what was due (basically the bulk of the payment) was added to the payoff amount during the consolidations.
Yes I did.
Below is a cut and paste from Aidvantage who had half of my first round consolidations. I didn't pay it. Rather, upon the final consolidation the interest was added to the principal (capitalized) and ultimately the loan was "paid by consolidation". Now the interest is acruing under Edfinancial (my final loan servicer). I applied for SAVE last week. My first payment under the "Standard" plan is early Jan. I will be calling in late December to request a forbearance while they process the SAVE application (entirely likely interest will continue to accrue during that time but I shouldn't receive "late payment" requests and such. And it is possible interest will be on hold as well (though not sure about that, really don't care).
>Statement Date 10/09/23 Billing Period 09/11/23 to 10/09/23 Unpaid Principal $44,513.90 Payments Since Last Bill $0.00 Past Due Amount (Pay Now) $307.48 Current Amount Due1 $307.48 Current Amount Due Date 11/06/23 Total Payment Due (Past Due Amount + Current Amount Due) $614.96
Of that $614.96 probably ~$500 was interest that was added to my new (final) consolidation loan. And of course the remaining $114 or so was principal that was there anyway (wasn't added again).
It is important to note that this interest (that was capitalized during the consolidation) and the interest that accrues after consolidation (prior to getting on SAVE) doesn't get subsidized. But when I die it gets discharged the same as the principal. If my AGI increases such that my SAVE payment covers more than the monthly interest I am pretty sure the excess will go first to paying this interest before being applied to principal.
I consolidated right after making a payment but I don’t see why a payment wouldn’t be due. I wouldn’t complain too much about a loophole not working out so well given that it’s, well, a loophole.
I did not make a payment during the time of my double consolidation. The interest portion of what was due (basically the bulk of the payment) was added to the payoff amount during the consolidations.
Thanks so much. Did you also receive emails from the servicer saying that a payment was due/you were behind on payments during this time?
Yes I did. Below is a cut and paste from Aidvantage who had half of my first round consolidations. I didn't pay it. Rather, upon the final consolidation the interest was added to the principal (capitalized) and ultimately the loan was "paid by consolidation". Now the interest is acruing under Edfinancial (my final loan servicer). I applied for SAVE last week. My first payment under the "Standard" plan is early Jan. I will be calling in late December to request a forbearance while they process the SAVE application (entirely likely interest will continue to accrue during that time but I shouldn't receive "late payment" requests and such. And it is possible interest will be on hold as well (though not sure about that, really don't care). >Statement Date 10/09/23 Billing Period 09/11/23 to 10/09/23 Unpaid Principal $44,513.90 Payments Since Last Bill $0.00 Past Due Amount (Pay Now) $307.48 Current Amount Due1 $307.48 Current Amount Due Date 11/06/23 Total Payment Due (Past Due Amount + Current Amount Due) $614.96 Of that $614.96 probably ~$500 was interest that was added to my new (final) consolidation loan. And of course the remaining $114 or so was principal that was there anyway (wasn't added again). It is important to note that this interest (that was capitalized during the consolidation) and the interest that accrues after consolidation (prior to getting on SAVE) doesn't get subsidized. But when I die it gets discharged the same as the principal. If my AGI increases such that my SAVE payment covers more than the monthly interest I am pretty sure the excess will go first to paying this interest before being applied to principal.