Hi Heather,

I am married filing jointly and am ready to apply for IBR with my husband.  I’ve also been a public service attorney since 2005.  My eligible loans are still with Sallie Mae.  I know I need to consolidate with the Dept. of Ed. federal consolidation program for my loan payments to count towards PSLF.  We could really use the reduction in loan payments that IBR offers now, but we can wait a few months if need be to reconsolidate my loans so they are PSLF eligible.  What should my first step be, consolidate with federal consolidators or apply for IBR?

You can select IBR as your repayment option as part of the consolidation paperwork process.  You can apply online here: http://loanconsolidation.ed.gov/  Also, studentloanborrowerassistance.org provides this Direct Loan Consolidation Self-Help Packet http://www.studentloanborrowerassistance.org/blogs/wp-content/www.studentloanborrowerassistance.org/uploads/File/selfpackets/consolidation.pdf

If you are having a short term financial difficultly, you could consider whether you qualify for a deferment (to temporarily suspend your obligation to pay) while you wait for the consolidation and repayment plan selection to be processed.

As you know, none of the payments you make to Sallie Mae can count towards PSLF, and even if you choose IBR with Sallie Mae, you’d have to choose it again upon consolidating into Federal Direct.