For Nate, there is another strategy worth pursuing called a double integration. This strategy takes at least three consolidations over several months and works in the following way:
Can you imagine that Nate possess 16 federal fund (you to each semester regarding Jack and you will Jill’s particular colleges). If the Nate consolidates seven of his funds, he turns out that have an immediate Integration Mortgage #1. When the the guy consolidates their 7 left money, the guy ends up that have Direct Consolidation Financing #2. When he consolidates this new Head Consolidation Financing #step 1 and you can #dos, the guy ends up which have a single Lead Consolidation Mortgage #step three.
Since Head Integration Loan #step three repays Head Integration Finance #step one and you can dos, it’s offered subject to the newest code restricting consolidated financing settling Father or mother Including loans to only qualify for ICR. Lead Integration Mortgage #step 3 is eligible for other Earnings-Motivated Payment preparations, in addition to IBR, PAYE otherwise REPAYE, in which Nate do shell out ten% or fifteen% away from their discretionary earnings, instead of 20%.