Hi Heather,

I applied to consolidate my loans online through Direct.  I know the process can take awhile, and I have not heard back from them.  Can I apply for IBR now, before my loans have been consolidated?  Or is it easier to wait until after my loans are consolidated?

Also, would the loan forgiveness program be applicable for a full-time contract position (6 months) at a public sector organization?

Thanks!

So sorry for the delayed response.  This one slipped past me.  You should be able to select IBR as your repayment plan when consolidating, and the paper consolidation application packet includes a repayment plan selection form with IBR as a choice.  Weirdly, there has recently been changes to the online consolidation process that erroneously categorizes some GradPLUS borrowers are being ineligible for IBR.  That’s not right, but folks have been instructed to wait until the consolidation goes through and then select IBR.

As for the contract position, it’s going to depend on your employer.  I’m assuming since you said contract, that the public sector organization is not your direct employer.  The question will turn upon who is.  If you are self employed or employed by any for profit organization, unfortunately your work wouldn’t qualify.

CAesq,

I wanted to reply since I’m going through the same situation.  I thought it would make sense for me to apply for both the IBR program AND the consolidation at the same time.  My consolidation was approved, but they can’t locate my IBR paperwork.  Their excuse is that the departments that handle the IBR program and the consolidation are separate, and paperwork often times is not transferred efficiently.  In other words, I have one month to get this IBR thing cleared before my mega standard payments arrive (and I do mean mega).  Unfortunately, what I did not realize is that when you consolidate you forfeit the 6 months grace period.  I now need to call them to find out what other sort of forbearance is available to me.

Either way, my advice - consolidate first, IBR later.  This time around I told them to mail me exactly the paperwork that they need me to complete (again) and asked for a fax number.  I do not want them telling me that they haven’t received anything.  I will admit that I am kind of disappointed at the process.  I feel I’m getting the run around and I don’t like it.  Also, this inefficiency makes me nervous about taking advantage of the automatic payment/bank withdrawal perk that the government offers (a small discount on your loans).  I feel that they may “accidentally” withdraw the standard payment and make another excuse for not receiving my paperwork.

The actual consolidation process took barely 2 months, in case you’re wondering.  I started that when I began my last semester in grad school. 

Luciana

Hi,

I wanted to follow up on my prior note.  I faxed AND certified mailed my documents to Dept. of Education.  Today I called, and they have received it.  They also granted me a forbearance of 2 months while they work out the paperwork for IBR.  They quoted me an estimate, and it does look like I’ll be approved without a problem.  I’ll keep this forum updated.

Thanks,

Luciana