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10 years of payments down the drain?

Total Posts: 1

Joined 2016-09-06

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Hi,

I have worked at a public defender office since I graduated college in 2006. I consolidated my loans, I believe, that summer in July before the Public Service Debt Forgiveness deal began in October, so my loans are FFEL. No one gave me any advice on this at all and to be honest, I didn’t know it was a real thing until recently. I then began to research into whether or not I qualify for forgiveness and found out that I don’t because… FFEL consolidation doesn’t qualify according to this site (see link). I could re-consolidate into the proper federal consolidation program to qualify, but then I would be starting from zero payments from what I understand. It makes me want to vomit, honestly. lol

Is there anything I can do? Or am I basically screwed?

https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service

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Total Posts: 154

Joined 2015-01-08

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You are right that FFEL loans do not qualify. Are you sure all of your loans are FFEL? You should check to see if any of your loans are direct loans. As Heather has mentioned, you have to have 3 things, the right type of loans (direct), the right type of payment plan (income based), and the right type of employment to have your 120 payments count. Also, I believe that the program didn’t start until late 2007, so any payments made before then would not count.

If you can reconsolidate into a direct loan, I’d weigh your options. If you don’t plan on changing careers 10 years down the road and your debt will take you more than 10 years to pay it off, it may be cheaper to reconsolidate, and start from scratch working towards PSLF. If you do, make absolutely sure they put you on the right kind of repayment plan. (a qualifying one)