I am a second year pediatric resident. I only have Direct Loans from medical school (subsidized and subsidized). I have been doing PAE and my servicer is Great Lakes. I’ve been reading that to qualify for PSLF I may have to consolidate loans.

1) Is consolidating only beneficial if I have FFEL loans and I want them to qualify? Or do I have to consolidate both my subsidized/unsubsidized loans as part of the application process for PSLF (i.e., I wasted a whole year making payments to Great Lakes and these will not count toward PSLF)?

2) If I do consolidate will the interest that I’ve accrued this past year capitalize?

Stressed and anxious,
Greencan

Consolidation is not required for PSLF.  Only borrowers with FFEL loans must consolidate to make those older loans into an eligible Direct loan.