Comments on: Is it Possible to “Undo” a Student Loan Consolidation or Refinance?

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Mon, 02 Oct 2023 17:06:02 +0000

In reply to Griselda. Undoing a consolidation isn't really an option once it is finalized. I've never heard of it successfully working, but your situation is a good example of why it should become an option. I'd encourage you to file a complaint with the CFPB and the Department of Education. I'd also encourage you to reach out to your elected officials. You attempted to make your student loans more managable and because you were not given the right information, you made a mistake with no easy fix. Shame on your servicer and the Department of Education for allowing this to happen.

By: Griselda

Griselda — Sat, 30 Sep 2023 23:56:58 +0000

Unbeknownst to me I consolidated a small parent plus loan with my loans… now I’m told I’m no longer eligible for several of the low payment options for PSLF. I have a ridiculously large monthly payment now. I’m trying to undo the consolidation but don’t know how likely that is.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Fri, 24 Feb 2023 14:32:43 +0000

In reply to Adrian. Hi Adrian, If you consolidated at the beginning of 2022, you likely won't lose that time towards forgiveness. The limited waiver was still in effect for PSLF borrowers, and the IDR Count update hasn't been completely processed yet, but you did it well in advance of the deadline. Early 2022 should beat the deadline for both of these temporary programs.

By: Adrian

Adrian — Fri, 24 Feb 2023 14:23:31 +0000

Hi Richard, I’m in a similar situation as Jen. I consolidated my FFEL loans (that were in an IBR plan for about 10 years or more) and two previous DL consolidated packages into one consolidation at the beginning of 2022. I was unaware that by grouping those together, previous payments made on my DL loans would not count toward the PSLF program. Is there a way I can fix my consolidation? It is sickening to think I would lose all that time.

By: Jen

Jen — Fri, 27 Jan 2023 22:56:40 +0000

Thank you. I just spoke to my loan provider and they said since I consolidated last year that I did not lose time. I still have to call the federal student aid since my time in Idr is not listed on the website. Big sigh of relief!

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Fri, 27 Jan 2023 21:47:56 +0000

In reply to Jen. Hi Jen. I think I have some really good news for you. It looks like you may not lose any of that time and may even get credit for the forbearance.

By: Jen

Jen — Fri, 27 Jan 2023 20:42:44 +0000

Hi Richard, I have been in an income repayment plan for years and years. I would say 15 years or more. In the beginning I was in forbearance because they did not tell me I had other options. I did not know if I consolidated I would lose all of that time. It makes me sick. What can I do? I make so little money my payment is zero and has been zero this whole time.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Tue, 18 Oct 2022 01:08:02 +0000

In reply to Jen Valentine. The hold times are brutal right now, but I don't know of a better way to get an issue corrected.

By: Jen Valentine

Jen Valentine — Mon, 17 Oct 2022 18:50:58 +0000

I submitted my request to consolidate my loans this morning, but found an error on it. I have one “J” code and one “O” code to consolidate, and only the J made it onto the request application. Can I get that error fixed? I called the Federal Student Aid and was told to call Mohela, the one who the app was sent to. Their wait time is 177 minutes and I’ve dropped the call a few times

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Mon, 10 Oct 2022 13:08:54 +0000

In reply to Richard.

As for actually canceling your consolidation, if you are over the 10-day window, it will be tricky. I’d suggest calling everyone you can to submit the request. In addition to Aidvantage, call the Department of Education. Also, call the servicer that will be getting your loans when you consolidate. If you don’t know where the new consolidated loan is headed, ask Aidvantage.

The more people you talk to, the better the odds that someone can hit the brakes.