I am in the process of considering whether or not to consolidate my FFELP loans (6 in total).  I also have 3 Direct Loans.  Can you advise what the pros and cons of doing so would be?  My main concern would be that the loan forgiveness ‘clock’ would start over.  I’ve been paying on the loans for four years and I would hate to lose those four years.  I also understand that I would be able to qualify for different repayment plans which would lower my total payment. 

Thank you!

I don’t fully understand…. are you consolidating to get your ffel loans to count? If so, it’s simple. Consolidate those loans only, and leave the direct loans out of it.

I really, really regret consolidating my loans. My plan was to consolidate and eliminate the 6 month grace period for public service forgiveness. Now with IBR, the consolidated loans have $15,000 in outstanding interest. Today I have a little money (key word is little). If I had not consolidated, I could just smack down a little cash to the lowest loan knocking out some principle until one by one they disappear. But since I consolidated, all I do is pay interest. Not a single penny goes towards principle. It is a horrible cycle that keeps me in debt. I am almost guaranteed to have a large balance when I get forgiven in 20 years. That means a LARGE bill from the IRS and my state.

Hart: I believe she is saying she wants to consolidate all her loans so that she could sign up for PAYE or REPAYE. She cannot sign up unless her FFELP are consolidated with her Direct Loans according to the student loan site. Right now, she is only eligible for IBR without consolidation.

Which site states this? You do not have to consolidate with your direct loans at all. You can select to consolidate only FFEL loans into one Direct Consolidation Loan, and leave your other direct loans out of it.

You are correct. I missed the fine print at the bottom. You have to have at least one direct loan or FFELP loan to consolidate.
That is an interesting suggestion to consolidate just the 6 FFELP and keep the 4 year clock going. Could be really helpful if all his/her loans went into repayment together. If his/her direct loans just entered repayment or are in grace period, it might not matter. I’m all for leaving some loans out of consolidation. Only consolidate what you have to on Income Based Plans.

Back to the question, aside from the creation of a mega loan in which interest can balloon, taking a few months to complete in which payments (not interest) stopped, and the elimination of any grace periods, I seem to remember them capitalizing my unpaid interest when I consolidated back in 2011. But it was so long ago. It is hard to remember how much they capitalized. They capitalized again when I changed from IBR to REPAYE last year. That was more painful.