Hi Heather

I am a government employee with high loan debt.  I consolidated my federal loans upon graduation with Federal Direct and have been paying my loans faithfully for years using the Income Based repayment program.  My wife also has loans and is on IBR.  I plan to take advantage of Public Service Loan Forgiveness Program and was just about to submit that new form you shared with us to Direct Loans to verify my work.

Today I logged in to my account and learned that my loans have been sold to Mohela.  I am pretty upset- I had no warning of this and have never heard of this company.  I have a lot of questions I can’t seem to get answers to.  Can you help?  Here are my questions:

1.  Will I still be eligible for IBR?  If so, will Mohela take my wife’s income into account even though she is still with Direct Loans?
2.  Will I still be eligible for the Public Service Loan Forgiveness program?

I am very worried about this.  I’ve been counting on IBR to get by and the Public Service Loan Forgiveness for the future.

Thanks very much

Sam

I have the same EXACT question/concern.  I’m looking forward to the response.  Thank you.

You loans were *NOT* sold.  They were simply transferred to another Direct Loan servicer.  Your loans retain all the same terms and conditions as they did before they were transferred, and any PSLF payments made prior to transfer will continue to qualify.  So, you will still be able to have IBR and PSLF.  You should submit the employment certification form, available here http://studentaid.ed.gov/sites/default/files/public-service-employment-certification-form.pdf.

alexandre - 05 October 2012 09:07 AM

You loans were *NOT* sold.  They were simply transferred to another Direct Loan servicer.  Your loans retain all the same terms and conditions as they did before they were transferred, and any PSLF payments made prior to transfer will continue to qualify.  So, you will still be able to have IBR and PSLF.  You should submit the employment certification form, available here http://studentaid.ed.gov/sites/default/files/public-service-employment-certification-form.pdf.

Are you sure about this???  I am in the exact same situation as the OP and I was very worried about this (just found out today my loans transferred to ESA/Edfinancial.).  I am VERY scared right now because even though I was technically on IBR and PSLF plans I hadn’t actually made any payments yet because my wife and I have had some unexpected medical bills.  Last time I spoke with direct loans the reassured me I was on IBR and my monthly payment would be about $500 (we can barely afford that as is) and I was scheduled to begin payments this coming July after the forebearance they gave me.  What will happen now?  I am very frightened this will ruin my life :(  THANK YOU very much for ANY information you can give me and God Bless!