My wife and I took out Stafford Loans from 1996-99.  Since 1999, we have been employed continuously in public service jobs.  In 2005, we jointly consolidated our Stafford Loans under a FFELP Federal Consolidation Loan.  The lender was a private company, as far as I can tell.  Assuming we are otherwise eligible (payments on time, right kind of loans and repayment schedule, etc.), does our 2005 consolidation preclude us from obtaining forgiveness under the PSLF?

Omar, Omar, Omar.  I am so sorry to tell you this but yes.  You cannot access the PSLF program!  The authority to issue joint consolidation loans has been eliminated.  That means that a joint FFEL consolidation loan cannot be reconsolidated into the Direct Loan program, because the Dept of Ed has no authority to do so. The Dept also takes the position that there also is no authority to 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 solely his/her loan.

I’m really sorry.  I can recommend that you contact your Senators and Representatives to let them know about this injustice.  It is very unfair in my opinion.  If a member of congress can be inspired, I’d be happy to do what I can to contribute to advocacy efforts.

This is a similar situation to mine but with an ex-wife added to the mix.  In the late 90s, while married, my ex and I jointly consolidated our loans under the FFEL consolidation program. Since then we have both been employed in public service jobs. We’ve been divorced for 18 months now and I am ready to begin repayment on my loans.  However, I want to separate my loans from his according to the divorce decree and repay under IBR for purposes of public service loan forgiveness. It seems that avenue is closed to me. Is this true? It seems discriminatory to disallow me an extension of credit as a single person to refinance either my part of the loan or the entire amount of the joint consolidated loan simply because the previous program was discontinued-particularly since there is another loan consolidation program available.

We really need to work on a legislative solution to this.  It is only joint FFEL consolidation loan borrowers who are in this position.  FFEL loans are not eligible for PSLF and joint consolidation loans cannot be consolidated into Direct Loans according to the Dept of Ed’s interpretation of the law.  ED says they lack the authority to offer consolidation loans in Direct for joint loans, since there is no joint loan authorized.  I haven’t thought of a decent counter argument to that position except (as you know) it’s not fair.  But the law isn’t necessarily fair.  I think Congress needs to fix it.  And Congress could certainly do that, but Congress does very little.  Sigh.  I wish I could help more.

I’m in a similar situation, but my loan, which is a consolidation of mine and my ex-husband’s student loans, is listed as a Direct Consolidation Loan.  When we were divorced we were each ordered to pay half of the debt of the student loans, even though his was only about 1/4 of the loan total.  He is a police officer so we’re trying to figure out how to take advantage of the PSLF program, even if only for his student loan or the half that he is court ordered to pay.  For some reason, this loan is listed under my social security number and is only appearing on my credit report and not his, so the outstanding debt has no effect on his credit score.  So glad they did away with the Joint Consolidation.  Only wish they had done it before I became a “victim”!

I am in the same boat! My joint consolidated FFEL loan is through Sallie Mae. I could be eligible for PSLF if I could consolidate into a direct loan. Per divorce decree, I am fully responsible for the loan but I can’t even consolidate into direct loan in just my name. I So not fair! What can I do to help get Congress moving??