Hi Heather -
My husband and I joined our student loans in 2003, unable to foresee the passing of the 2007 loan forgiveness act.  I am employed in a public service position and would benefit greatly from the loan forgiveness program for my part of the loan.  I have received conflicting information depending on who I have talked to at Direct Loans as well as on the web.  It would appear that I am eligible under this law for the forgiveness program, but would not qualify as Direct Loans won’t accept my spousal loan, currently serviced by Sallie Mae.  Is this correct?  Is this legal?  The lion’s share of the loan is mine.  Is there a way to drop his name from the loan to qualify me for the program?  Any other suggestions or thoughts?  Thanks.

It is with tremendous reluctance that I tell you this. 

Unfortunately, I have been told that FFEL joint consolidation borrowers are not able to reconsolidate into the Direct Loan program to take advantage of PSLF.  Those lucky enough to have Direct joint consolidation loans are eligible for PSLF, and if only one borrower qualifies for PSLF, the proportion of that borrower’s debts to the original consolidation loan would be forgiven.

This is obviously completely unfair.  I did some more legal research this morning, to see what precedent it is that determines this result, but I’m not finding anything specific so far, just the general assertion that since joint consolidation loans are now prohibited, joint consolidation loan holders cannot reconsolidate.

Let’s push on this one to see if we can get some better information.  Please send me your contact information via email to .(JavaScript must be enabled to view this email address) and we’ll work on it.

Hi Heather.  Thank you for checking into this further for me.  What really seems unfair here is that Direct Loan has been agreeing to separate joint consolidation loans for their current customers.  Do you think that, since my joint loan originated with Direct Loan, that I might have any chance here?  Again, I appreciate your time. Thank you.

Well, I’ve checked with both the Department of Education and another student loan advocate and it stinks.  Because the authority in for joint consolidation loans was eliminated in both the Direct Loan and FFEL programs, their is no legal authority for borrowers in your position to reconsolidate.  In order to reconsolidate a joint FFEL consolidation loan into the Direct Loan program, there would need to be authorizing legislation that allows DL to make a new joint Direct Consolidation loan.  There is no such authority.  Since both borrowers are “jointly and severally liable”, meaning you are both on the hook for the full balance, they cannot allow each borrower to separately consolidate their respective portion of the joint loan based on the original loans consolidated or for one borrower to reconsolidate the joint loan as his/her loan.

We must go to Congress!  Who’s your representative?

It is Congresswoman Kathy Hochul.  I actually sent an email to her office recently regarding this matter, though have not yet received any response.  The issue is that Direct Loan is actually allowing their joint consolidation customers to separate but not other customers such as myself, which is completely unfair.  I was actually told when we jointly consolidated the loans that, if one of us dies, that portion of the loan would be forgiven for the other party.  Is that even true?  In any event, this federal program is being offered to some joint consolidation holders and not others solely on the basis of who is servicing the loan, which is discriminatory.  As a taxpayer, I feel that I am entitled to the program just as much as a joint consolidation customer of Direct Loan.  Well, thanks again for helping me with this. 

I will draft a legislative fix that together we can try to get through Congress.  Let’s set up a time to talk about next steps.

Did you guys ever get anywhere on this? I am in the SAME EXACT situation!! & two years after this post.. I am finding the same exact info as when you guys discussed this. Is there anything I can do to help fight this unfair law?

This is my exact situation as well.  What do we need to do besides contacting our representative about this?  How could they close the joint spousal consolidation program because of how bad it was and not give anyone that enrolled in it a way out because it was done through Sallie Mae instead of Direct Loans?  Is this even legal?

My ex-husband and I, divorced for 9 years are jointly repaying over $100,000 in studnet loan debt.  From what I can tell we both qualify for the loan forgiveness - we work together at a public university.  I can’t seem to find anything saying whether jointly consolidated loans qualify for forgiveness.  In fact, it’s hard to find anything anywhere that address it, other than to say it isn’t possible anymore.  Also above is the first I’ve heard of any one allowing loans to be seperated.  We had direct loans, but the loans as of this year are being paid to Mohela. I’m desperate to get some answers.  I haven’t called aobut the forgiveness but anytime I’ve called about anything else they seem to be almost clueless about what to do with our situation other than to remind me we are both responsible for the full amount of the loan.  Help…

Heather,

I spent hours on the phone last week talking with the Direct Loan Program Rep, the Sallie Mae reps and in the end was told what you have shared in this thread, that my ex-husband and I are not elligilble for the PLSF program due to the fact that when we married, we consolidated our loans and are now equally responsible for the debt.  What’s really frustrating is that I have been trying to get the loan done for over 6 months and now just found this information out.  Unfortunately, I am a social worker in foster care non-profit and do not make ton of money (and a single mom of a 5 year old and struggle to make ends meet monthly).  My payments are a hefty 670.00 per month through Sallie Mae and I can not even begin to make a payment like that!  My ex husband is very upset because we had an agreement he would pay on loans for 5 years (his loan was really small, mine $90,000) and then I would take over.  Well, my loan has gone into default because I simply can not afford the loan payment…..(of course, back in the day of 2 incomes, married, idealistic, you think that the future will be otherwise!).  We have been divorced for 8 years and I qualify for the program but we are STUCK!  I know that you drafted something for congress?  Should I follow up on?  Can I be a part of going before the congress and getting legislation passed.  I feel like this is completely unfair….I am being penalized for making a loan consiolidation I did not fully understand the remifications of.  Anyway, I would appreciate your feedback and will be glad to get to work and try and help with this matter with action. 

Thank you.

I would be happy to help in any way I can too.
Anissa - did they say it can’t be forgiven because it’s consolidated or because only one of you works in a field that is eligible or both?
Leslie

Thanks for your reply Leslie,

The loan will not be released from SALLIE MAE because it is a spouse/joint consolidated loan and it states in the loan paperwork that the loans can never be consolidated and that we are both equally liable for the balance (that’s what they told me on the phone).  They said that due to the combined income (I do not make much but my ex-husband makes substantially more) that we do not qualify for ANY programs to assist us in making the loan payments more reasonable.  I feel there is no way out and no way for me to take care of this. 

Anissa

I was thrilled to find this thread and quite saddened at the same time.  I have been fighting this battle for several years now.  Very similar story - divorced with consolidated loans.  My ex makes over six figures/year, I make $28,000.  I do not qualify for any repayment programs due to his income.  Last year we had both of our lawyers speaking with MOHELA, our loan servicer, looking for options to unconsolidate or allow lower payments.  My father even offered to pay off the debt at 80% (we now owe more than double the original loan amount).  The government cannot accept a buy down.  My Senator at the time, Max Baucus, even called and wrote on my behalf and received the same response…their hands are tied.  The program allowing spousal consolidation was ended with no consideration to those already caught up in the nightmare.  There truly is NOTHING that can be done at this time.
I have no idea where to go from here, the change can only come through congress - but I would be very willing to assist in any way in the process…

My husband and I are going through the same thing with Sallie Mae. I’m in NY State and will do anything I can to try to get this resolved. We’ve been going through this for 12 years almost and are ready to declare bankruptcy because of it although I hear we can’t get student loans discharged. Any help anyone could give would be greatly appreciated. Please! Thank you.

Hello,  I am in the same boat.  I am curious if there has been any progress?  Ironically Fed Loan Consolidated our Sallie Mae joint loan,  unknowing they said it was a joint loan.  Due to some other issues it has been discovered and they are in the process 6 months later now of sending it back to Sallie Mae.

Has there been any progress on this?

Tricia

I thought I was the only one going through this nightmare. We divorced 10 years ago, he agreed to pay the consolidation loan, and never did. It wasn’t in divorce papers but that would not have mattered anyway. 10 years later all deferment options are exhausted. We default in 34 days. After months of daily phone calls with Sallie Mae and daily attempts to contact my ex I reached his wife on Facebook. She was nice at first. I explained I’d been attempting to consolidate the loan with my other student loans and remove my ex to no avail. I explained that to get a graduated repayment plan my ex and I both had to call the lender. At first she said they have 3 kids and cannot afford to be garnished either. Then an hour later she wrote back after speaking to my ex to say they don’t believe me about both of us having to speak to lender, they don’t care about default. They refuse to make a simple 5minute phone call, and to ice the cake she threatened to sue me for harassment for contacting them about the loan! We owe 40k, it could be worse but I happen to work in child welfare so my income is extremely limited. So at 40 years old I had to give my landlord notice and am moving into my mother’s dining room to pay the loan past due balance and make the payments to avoid default. My ex is ex military and a decade ago was making twice my salary, probably makes 3 times as much now. He will be getting off free and clear whilst I spend the next 30 years residing in a dining room. If there is any hope for me please let me know