Imagine this: Youโve been making student loan payments for 10, maybe even 13 years. Youโre finally seeing light at the end of the tunnelโonly to wake up and realize all your progress is gone. Youโre back to zero.
If you consolidated your loans to qualify for Bidenโs SAVE plan, this devastating reality could apply to you. Over the last two weeks alone, weโve spoken with over 300 new FitBUX Members who are in this exact situation, and their stories are gut-wrenching.
Hereโs whatโs happening, why it matters, and what you need to do next to protect yourself.
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The Problem with Loan Consolidation
The SAVE plan (Bidenโs new income-driven repayment option) is currently being challenged in court, and its future is uncertain. While thatโs bad enough, thereโs an even bigger issue hiding in plain sightโloan consolidation.
Hereโs the critical detail:
- By the letter of the law, consolidating your loans creates a new loan.
- When you consolidate, your repayment timeline resets to zero.
Think about it like this:
- If you started repayment in 2010 and had 13 years of progress toward forgivenessโฆ those 13 years are now gone.
- If youโve been on PSLF for 8 years and consolidated to jump onto SAVE, your PSLF progress also resets.
The heartbreaking truth? Biden may have promised those years wouldnโt reset, but promises donโt override the law. If SAVE doesnโt survive these legal battles, borrowers who consolidated could lose everything.
Why the Next 6 Months Are Critical
- The SAVE plan is under fire in court. If itโs struck down, consolidated borrowers could lose all their repayment progress.
- PAYEโs future remains uncertain. Without it, income-driven repayment may become out of reach for many.
For borrowers who consolidated, the stakes couldnโt be higher.
What Should You Do Next?
If you consolidated your loans for the SAVE plan, you need to act. Time is not on your side.
- Review your loan details: Check your consolidation history.
- Stay informed: This situation is unfolding fast, and you canโt afford to miss updates.
- Talk to an expert: Schedule a call with a FitBUX Financial Expert to discuss your options and create a plan.
The worst thing you can do right now is nothing.
Final Thoughts
This is one of the most gut-wrenching issues Iโve seen unfold in student loans. Borrowers who thought they were nearing the finish line are now facing a reset they never saw coming.
If you or someone you know consolidated their loans to qualify for SAVE, share this article with them. The next 6 months are critical, and having a plan could make all the difference.
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