Hi I’m new here. So glad to find this forum and site. I have been trying to figure out this loan forgiveness thing since I heard about it a couple of years ago. I work for a non-profit now for almost 3 years and my loans are currently in IBR - I was told that the one loan - which is a federal loan could be consolodated but I would have to take a higher interest rate. that didn’t sound right to me so I have been trying to find out what i need to do. I would like to try to get this loan consolidated with my sallie mae loan, but I just get the run around when I try to get some answers. do I need to consolidate both into one loan? And once I do when does the clock start ticking on the 10 period? How do I let the governement know what I’m going so it applies to my forgiveness… I’m just very confused and a little overwelmed with trying to get this going, so any help is greatly appreciated!!
Thank you so much!
Cat

Some borrowers (not most) may have earned modest interest rate reductions called “borrower incentives,” typically granted after a certain number of on-time or automatic payments.  If you earned such a perk, you’d lose it by consolidating, since those benefits are specific to the lender.  Ask your lender to figure out the deal with that.

Otherwise, unless you have old federal student loans (from before July 1, 2006), consolidating essentially preserves your current interest rates. Interest rates for federal student loans borrowed on or after July 1, 2006 are fixed.  Federal consolidation loans also have fixed interest rates.  The consolidation loan interest rate is based on the weighted average interest rates of the loans you consolidate, rounded up to the nearest 1/8th of one percent, and capped at 8.25%.

If you borrowed before July 1, 2006, you may have variable rate federal loans.  You can lock in a fixed interest rate by consolidating, and you may get an interest rate reduction.  Rates are currently low. 

Public Service Loan Forgiveness is earned by making payments.  You have to make the right kind of payments, on the right kind of loans, while you are in the right kind of job.

Start by reading through Public Service Loan Forgiveness in 5 Easy Steps and the other one pagers on my tools page under Tools for Student Loan Borrowers, especially the Borrower Action Plan.  Also think about attending one of my free webinars.