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Window closing on student loan forgiveness - what you need to know (2024)
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- เผยแพร่เมื่อ 16 ส.ค. 2024
- UPDATE: You now have until June 30th, 2024 to consolidate your student loans - all other info still applies, just new due date of June 30th. I made an updated vid you can watch here:
• Time's running out to ...
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If you have student loans and are looking to get student loan forgiveness, whether that's through IDR forgiveness (Income Driven Repayment forgiveness) or PSLF (Public Service Loan forgiveness), you might be able to take YEARS OFF your student loan repayments by consolidating your student loans before April 30, 2024.
This is especially important for people with FFEL student loans (ie, you got your loans before 2010) and people with different payment counts on their student loans!
You could take years off your student loans because of the Income Driven Repayment recount going on. In this video I talk about how consolidating your student loans might take years off your loans and get you forgiveness MUCH FASTER! But student loan consolidation isn't right for everyone so be sure to watch through to the end.
Links/phone numbers mentioned:
⭐ Department of Education Federal Student Aid Information Center (FSAIC): 1-800-433-3243
⭐ Info on consolidation, eligibility, pros/cons: studentaid.gov...
⭐ Ready to consolidate? Go here: studentaid.gov...
⭐ PSLF buyback program:
studentaid.gov...
⭐ IDR account adjustment information: studentaid.gov...
⭐ Perkins loan cancellation information: studentaid.gov...
⭐ All about FFEL loans: studentaid.gov...
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Chapters:
00:00-00:44 Hello!
00:45 Should you watch this video on student loan consolidation?
1:46 - Overview of- and problems with IDR and PSLF forgiveness
4:20 - how IDR recount gives you time towards forgiveness
5:45 - What does it mean to consolidate student loans
6:41 - How consolidation gets forgiveness faster
8:24 - Is student loan consolidation during IDR Recount right for you?
10:20 - Why you maybe shouldn't consolidate?
10:50 - When not to consolidate
12:22 - Steps to take before consolidation of student loans
14:03 - Things to know before consolidating
15 - Don't wait to consolidate your student loans
15:40 - Dangers of consolidating after April 30th
This student loan 💩 is really pissing me off, i have gotten mutilple emails that I qualify for student loan forgiveness, and I havent gotten one penny of loan forgivness.
We got completely screwed over by Navient, after they had already been sued and lost but absolutely no recourse for any of that either unless we want to try and pay a lawyer with money we dont have and sue them again
Hi! Sorry to hear you've been promised forgiveness but haven't seen it come to fruition, that sounds incredibly frustrating!!
My fingers are crossed you get the forgiveness asap!!
Thanks for watching! -k
@@themoneylibrarian thanks! Dont know if I was promised as much, but thought I would get something esp when they said I qualified and then to get nothing is really questionable
Hi! There is a lot coming down the pipeline, hopefully something will work for your situation soon! You can always contact your loan servicer or the Dept of Ed to learn more about your loan status (or check on studentaid.gov)
(Have you checked out the SAVE repayment plan? It offers a couple ways to get forgiveness: th-cam.com/video/Iz1C8Ou-Bgc/w-d-xo.html)
Good luck and let me know how it goes!! -k
Glad to know I'm not alone.
I have Navient, too. Got completely screwed. Been paying for 30 years... originally owed $38,000, but paid over $50,000 in monthly payments so far, and debt is only down to $16,000.
I consolidated under SAVE IDR repayment plan. One time adjustment allowed me to receive forgiveness about $200,000. My husnand lawyer $250,000 forgiven. We can buy more homes since debt to income ratio improved dramatically. Forgived amount is tax free if consolidated before 4/30/24. Still has small balance to pay. SAVE was life saver!
Hi @jjpark4075 - that’s great, congratulations 🎉🎊!!! Please share and spread the word about the consolidation due date of April 30th so others can get in on this incredible student loan opportunity!
Congrats and thanks for watching! -k
Will do. Thanks for the great video.
@jjpark4075 - similar situation but getting ready to consolidate (like … applying today). Two quick questions if you don’t mind - 1. Does the actual consolidation have to be processed completely by 4/30 (or you have to have application in)? And 2) how long had you been paying overall?
Hi! I can answer the first question - the application must be in by the 30th, it doesn’t have to be processed by then.
Thanks for watching! -k
THANK YOU!!!
I consolidated my
Loans years ago and was even making payments. Last year, my entire 140 K debt was cleared!
Hi - YAY! Congratulations, that must have been a great day for you!! Thanks for watching! -k
Thank you for the details! I noticed the process of consolidating and repayment options seems to be in one application. Im crossing my fingers it doesn't nullify with such a short window left until the deadline. Thank again.
Hi @ulochi - it should be fine, they just want some direction with what payment plan the “new” loan will be on.
Thanks for watching and let me know how it goes! -k
I did my consolidation application in November of last year and told Aidvantage to cancel it. Which I shouldn't have but I wasn't sure what I was doing! Today finished two paper applications and will send them off tomorrow. I hope I am not too late. Thanks for the info.
Hi @rosalynstanley8310 - of course you started and then canceled, dealing with student loans is scary!
Sounds like now you have the confidence to get this done because you know the great benefits it can provide.🥳 you are within the timeframe, not too late!!
Thanks for watching, congrats on taking this step, and let me know how it goes! -k
Where do I find the paper application? Do I still have time??
Hi! Consolidation applications are available here (including paper, click the "Can I submit a paper federal student loan consolidation application?" dropdown): studentaid.gov/loan-consolidation/
You have time to do one consolidation, but probably not the double loophole PPL consolidation. See my note in your other comment.
Thanks for watching and good luck! -k
Thanks, great video. I started a FFEL Facebook group about 3 years ago, I'll share it there. I only consolidated about a month ago. The process and the waiting game is so nerve wracking, I hope it's worth it!
Hi @TheBluepunk75 - Any changes to our student loans is super nerve wracking - - which is funny since so many of us took out the loans without a second thought 😂😭
It should be worth it for most people, this is the last time (that we know of) where you get to keep your payment history AND have access to all the IDR plans. Thanks for sharing it in your group, I think it'll help a lot of people!
Thanks for watching and congrats on consolidating your loans! -k
Have you gotten yor loans forgiven? I have some loans from the early 90s then consolidated in the mid 2000s - I am just concerned this will not go through
Hi! Are they still FFEL loans? You can check their type on studentaid.gov
If so, it would probably be best to consolidate to Direct loans but you’ll need to speak with your loan servicer or the Dept of Ed to find out more for your situation.
If they’re over 25 years old they should be getting forgiven via IDR forgiveness soon.
Good luck and thanks for watching! -k
@TheBluepunk75 Hi - what is the specific name of your group? I've been searching for it - thanks!!
@@melk.175 FFELP and other student loan heck
I called Student Aid and they say call Aidvantage and when I call them they tell me to call Student Aid. I just go in circles of misinformation
Hi @lindaparish9000 - UGH! I'm so sorry to hear this, it sounds hugely frustrating!
Based on my comment sections and what I hear, it isn't uncommon for student loan servicers to give bad advice, you may have better luck calling back and getting a different person to help. Wish I had some magical knowledge for your situation!!!
Good luck and thanks for watching! -k
I was told my loan servicer that you don’t have to consolidate or do anything for the loan to be forgiven. You don’t do anything just wait for a decision. 🤷🏼♀️
Hi! It depends on your situation, some people will need to consolidate in order to be considered a part of the IDR recount and get forgiveness - why I always say to call the loan servicers to ask about your particular situation!
Thanks for watching! -k
Incredibly helpful! Thanks for sharing your knowledge on such a complicated and heavy topic.
Thank you for watching, hope it helps you!! -k
Have been paying on parent plus loans since 2005. Retired in 2018 with lower income. Submitted an application for consolidation and ICR plan on 6/8/24. I will have a $0 payment amount which will definitely help. Just waiting for the payment recount adjustment to take place.
That’s great to hear! My fingers are crossed the process is fast for you. Thanks for watching!!-k
This video came into my feed today, and now I'm realizing I completely and totally missed this and the deadline. I've had student loans from 2002 - 2007, and I was in IDR or forbearance for almost all of those years. Now kicking myself. -_-
Hi! I’m sorry to hear this!
If you’re on an IDR payment plan then they should be part of the recount - meaning you will get forgiveness based on the IDR plan you’re on in 20-25 years.
Unless you have some loans with small payment counts and others with large payment counts, this may have helped you out. If all your payment counts are nearing 20 years, there’s still a light at the end of the tunnel.
Hope this helps and thanks for watching! -k
Hi @saltystoatmedia4623 - they just moved the date to June 30th - you still have time!!
-k
You information makes since. I am going to try my best to see if consolidation will work for me. I have been trying previously but have not been successful. Thank you.
Hi! So glad this was helpful - I have LOTS of other vids on student loans you may find useful, they're all here: th-cam.com/play/PLHs5-7lB_Qj9hubdjCDtIndZkpjmrJCXh.html
Good luck and thanks for watching! -k
I wish I could benefit from loan forgiveness. I completed my doctorate in ‘22. I started repaying my loan this year. I also have Parent Plus loans for my daughter. My daughter is enrolled and does not qualify since she's in school. I started the process for myself, then decided not to proceed, especially after reading reviews on the loan agency the government uses for loan consolidation. All of this is not very clear, and I am in my 50s, so I can imagine what young adults and others are experiencing. It shouldn't be this difficult to understand or process. Only in America! 🤦🏽♀️
Hi @drcyntreljaneu - Congrats on completing your doctorate - that's HUGE!!!!🥳🥳🥳
Parent PLUS loans are tricky - definitely beware wrapping them up with your own loans in a consolidation as they have much fewer benefits. If getting them on one of the other income driven plans (th-cam.com/video/Rz38mIVocoA/w-d-xo.html) would be helpful, you can do the double consolidation loophole through June of 2025.
If you have friends with kids who are now looking at schools, I have a FABULOUS deep-dive on finding the right school and paying for it here, do them a solid and please share it with them: th-cam.com/video/F8_Kf4JMQ4w/w-d-xo.html
Congrats to you and your daughter on her soon-to-be college graduation! Thanks for watching! -k
Hi! I just reached our for a consult! Great stuff I'm sure I can learn more from you. See you next week
Hi @edward9 - wonderful, I'll email you some information! -k
@@themoneylibrarian thanks!
The elephant in the room is the dept of education (and DEALING WITH THEM). Total bureaucratic failure
My thoughts exactly. I can call them, but will they pick up?
Hi! Yes, it can be hugely frustrating dealing with such a giant bureaucracy.
I do want to give them a bit of grace as, between the student loan overhauls and FAFSA craziness, they are very overloaded. -k
Thank you! For the information and explaining how everything work.
Hi @CoachAngProductions - so glad you liked the vid, thanks for watching! -k
I share your post on my facebook platform 😊
@CoachAngProductions wonderful! This is so time sensitive and important, it can help a lot of people - thanks for sharing!! -k
This is a amazing explanation!!!! I’m a admin in a couple BTR and student loan groups can I share your video In groups ?!
Hi @lcbirdwell - So glad you liked the vid, please share widely - this is really important and people only have one more week to get it!!
I have a LOT of vids on student loans others in your group may want to watch concerning payment plans, how interest works, etc, you can find them all here: th-cam.com/play/PLHs5-7lB_Qj9hubdjCDtIndZkpjmrJCXh.html
Thanks for watching, your kind words, and sharing my vids! -k
Wish I found you sooner 😕 missed the deadline.
Hi! It’s your lucky day🍀🥳 They are giving people more time!! New due date is June 30th - I’ll be posting an updated vid soon.
Thanks for watching! -k
Kate is the best!
Hug her!
Thanks for the kind words - all virtual hugs are appreciated (but real ones coming from strangers on the internet are not welcome)
@@themoneylibrarian ugh.
I consolidated my FFELP loans to a direct loan in the fall of 2023 from navient… I have not done IBR in the past, or qualify for PSLF as I just tried to pay extra, but have 11 years of payment history from navient. With the new direct loan, I’m back to a new 25 year plan due to them being a grad school loan. Have you heard of anyone getting forgiveness after hitting the initial 25 years?
Hi @jessicastuckman5032! Yes, lots of people are getting their student loans forgiven after paying for 25 years because of the IDR recount even after consolidation.
I would think your 11 year payment history should, eventually, show up on studentaid.gov with the IDR recount so you only have (“only”🙃😳) 14 years until forgiveness if you are on an IDR plan.
You may just have to be patient as they finish up the recount, should be done by mid-summer and then your payment count will be on studentaid.gov
Good luck, let me know how it goes, and thanks for watching! -k
The federal student loans that are managed by a private company such as Sofi will not qualify for federally mandated deferments(e.g. COVID deferments). So I am not convinced that these types of student loans will qualify for the “New direct consolidation”. I will call the Dept. of Education to clarify my options. Thanks for uploading the video.
Hi @daw773 - SoFi is not a student loan servicer, they do offer refinancing of student loans. Any benefits to federal student loans would not go to their loans as they only have private student loans.
You can see which of your loans are federal by logging into studentaid.gov
Calling the dept of education is a good idea, but know they’re overwhelmed right now and you’ll be on hold for a while.
Good luck, let me know how it goes, thanks for watching! -k
@@themoneylibrarian Thanks for the advice.
I’ve been retired 4 years. I have made student loan payments for 25 years. If I consolidate, can I get pslf if I am not currently working? And will my forgiveness be retroactive to my balance at 120 payments?
Hi! If you have FFEL loans (and if they're 25 years old chances are, yes), consolidating TODAY would allow you to keep your payment history, get on an IDR plan that forgives loans after 20-25 years, again WITHOUT LOSING YOUR PAYMENT HISTORY. If you've been on an extended payment plan, there is no forgiveness on that repayment plan.
Long story short - there's a good chance that consolidating today, and choosing an IDR repayment plan will get you forgiveness asap (assuming all the months count towards repayment, no non-qualifying periods of forbearance, deferment, or bankruptcy)
Right now, FFEL loans only have access to one of the four IDR plans (here's my vid on those th-cam.com/video/Rz38mIVocoA/w-d-xo.html ) - consolidating to a Direct loan will give you access to all four, potentially dropping your monthly payment by a lot.
You can find out what type of loans you have, who holds them, and consolidate them (if you decide this is best for you) at studentaid.gov
Good luck and thanks for watching! -k
THANK YOUUU🙏🏽
THANK YOUUU 🤍
THANK YOUUU 🥰
WOW…VERY CONCISE…WAS ABLE TO GRASP WHAT IS HAPPENING, AND WHAT NEEDS TO TAKE PLACE⭐️⭐️⭐️
Hi @lovealwayz222 - so glad I could help! 😊😊 If you know others who have student loans be sure to share this with them so they get in under the April 30th deadline.
Thanks for watching and good luck!!! -k
@@themoneylibrarian Hiiii🥰! Yes, you helped tremendously!
I watched other videos, but still wasn’t sure what to do. I didn’t even think I was eligible, because I don’t work in public service. It was amazing how clear you were in 16 minutes! Everything just made sense!
You’d be a great teacher⭐️⭐️⭐️!! Well, you are teaching right here on TH-cam! Keep up the great work!
I have already shared the video, and will continue doing so💫♥️💫!
Oh…and I WILL definitely subscribe💫💫💫
Hi @lovealwayz222 - thank you so much for your kind words! 😊😊😊
I did a lot of teaching as a librarian, I love to help people!
Thanks again for your kind words and support!! -k
@@themoneylibrarian You are most welcome! Your skills as a librarian really paid off! Just impressed with how you managed to cram all of that info into a 16 minute video without it being boring😂💎⭐️💫💫💫
Keep up the great work🥰
@lovealwayz222 ☺️☺️☺️ thank you!!
For a federal student loan called FAFSA, it is a double whammy. It shouldn't be forgiveness. The payment should be in full. You borrow, then you pay or take one class at a time. Nobody forces you to take a loan.
Thanks for watching!
When you call the dept of education can’t get thru at all.
Hi @EmDell - they are SLAMMED right now - best thing you can do is start with a full battery and have some errands to do around the house while you wait on hold. 😅🫠
And then be sure to be nice to the person on the other line as they have a really hard job and are dealing with stressed out student loan holders all day 😇
Thanks for watching! -k
@@themoneylibrarian No it doesn’t work like that. They don’t allow anyone to stay on hold at all. They say “ too many calls so try your call later “ and hang up. You can’t reach anyone. The message says call your servicer
Hi @Cpaexam2024 - OH NO! 😲
Another user mentioned the website wasn't working - I have a feeling they're getting overwhelmed with this deadline and both the phones and website are just too much for their current capacity.
Good luck!!! Thanks for letting me know and thanks for watching! -k
I was able to chat with them easily.
@so.many.obstacles that’s great, I’m sure they’re far less slammed than they were a couple weeks ago. Thanks for watching! -k
Thats weird the user recommended apply for consolidation first then SAVE. They have an application where you can apply for both at the same time. I applied on student aid gov and my IDR came back first. consolidation is still processing.
Hi! This is my understanding as well - when you consolidate you also select a repayment plan at the same time.
Thanks for sharing your experience and thanks for watching! -k
Ffel and perkins loans should or should not consolidate? Unclear in the language here. Im very confused!
Hi! In most cases, yes they should so you can access all 4 income driven repayment plans without losing your payment history - the big reason why not to for Perkins is if you’re going for Perkins loan forgiveness: studentaid.gov/manage-loans/forgiveness-cancellation/perkins
Ultimately only you can decide what’s best for your situation but I hope this helps! -k
Consolidating my Loans 17yrs ago is what SCREWED me. (17+ yrs of non-profit work…) - Why would I risk consolidating now if I’m 1.5yrs away from repayment!!!??? 💩
Hi - Sorry to hear consolidation ended up hurting your loans before! Unfortunately you aren't alone.
Student loan consolidation isn't for everyone, I go into detail in the video on who should consider consolidation as certain benefits will go away after April 30th.
Thanks for watching and good luck with your loans! -k
@@themoneylibrarianUnfortunately it is still very Unclear!!!
In which case I recommend you contact your loan servicer as they may be able to give you some guidance here. Good luck! -k
You couldnt do the PSLF? Also consolidation is different now than before when the count was reset to zero.
Hi @dreamceline2093 - The rules around PSLF and the actions taken by loan servicers, especially in the early years were super confusing which is why very, very, very few of the first people to apply for forgiveness through PSLF were approved in 2017/2018. Unfortunately, this story is far too common. 😔
Thanks for watching! -k
I did not know about this until today, unfortunately.
Hi! If this is right for you you have through Tuesday to complete it. Good luck and thanks for watching!! -k
The deadline for consolidation was just extended to June 30th!
It's not too late they just extended the deadline to June 30th. studentaid.gov
Thanks for finding this comment and telling them about the new due date! I have an updated video with the new date here : Time's running out to get student loan forgiveness YEARS SOONER!! (2024)
th-cam.com/video/gIo4yhDX5j4/w-d-xo.html
Thanks for helping the other commenter and thanks for watching! -k
@@themoneylibrarian I'm watching it right now. :) I just called two friends who missed the April date! Thank you so much for making a second video. I wouldn't have known about the extended deadline if I hadn't check my consolidation status on studentaid.gov today. I hope people find your videos. I made a few comments down the feed to people who seemed to have missed the deadline, as my heart goes out to them. The whole student loan stuff brings such severe anxiety that so many people.
Found your videos just in time! Whew! consolidated my loans and working on the parent plus next. My daughter is in medical school. Should she consolidate her undergraduate loans before the deadline?
Hi! So glad you found my vids in time! I doubt there’s a reason for her to consolidate her undergrad ones, this is more for people who have been out of school for a while.
Have you seen my vid on the parent plus double consolidation loophole? It may be useful for you - th-cam.com/video/zSyV-aIH2Gs/w-d-xo.htmlsi=6heXrObCQl3qhdQI
Thanks for watching and good luck! -k
I need to act on this immediately on one of these plans but I don't know which fits my situation for person that has Subsidized and UnSubsidzed loans. All these plans form my view feel like they are going towards borrowers with special situations.
Hi @isthe3rd167 - You can always call the Department of Education to ask them whether you should be consolidating your student loans before the 30th. They have access to your history and should be able to help!
Right now they are SUPER slammed, so just know it'll be a while on hold. Have some TV to watch, a book to read, or errands to get done around your home while you wait!
Good luck and thanks for watching! -k
Hello, I have to decide by tomorrow on consolidation to an IDR plan. I currently have the FFELP loans and was notified I may qualify for some of the benefits and possibly have my loans forgiven. Problem is when I went to apply for the consolidation with IDR, my payment increases by over $200 more a month. I started repayment in 1/2005 with over 36 months of forbearance, deferment, etc. Does this mean I would only have to possibly pay that higher amount until 2/2025 and they can be forgiven? This is assuming they count all of the forbearances etc. If it doesn't work out, can I go back to a standard repayment plan to lower my payment? I reached out to DFPI, and they said they count, but it is still not clear.
Hi! FFEL loans only qualify for one of the four income driven repayment plans - all of these plans offer forgiveness for undergrad loans in 20 years and grad loans in 25 (some offer grad loan forgiveness in 20). Not sure if you’re getting quotes for all 4 of these that show the $200 increase.
9 times out of 10 it is best to consolidate FFEL loans now so you don’t lose your repayment history but gain access to the other IDR repayment plans and forgiveness - but only you can determine what’s best for your situation since consolidation will change your interest rate and required payment.
You can change payment plans at any time but I can’t guarantee that whatever plan you’re on now will still be accessible to you if you consolidate. It should lay out all your options at the end of the consolidation process so you know what you’re getting into.
Until the payment recount is complete (where they determine the number of qualifying months in repayment) it’s hard to know when you’ll get forgiveness. At earliest it would be at the beginning of 2025, but it will depend on the recount and since they have 40 MILLION accounts to go through, that won’t be done until the end of the year.
Here’s my vid explaining the four IDR plans : th-cam.com/video/Rz38mIVocoA/w-d-xo.htmlsi=76Q85nER3mZdvp-l
You can easily figure out what your payment on the SAVE plan will be, here’s my vid explaining how to determine it: th-cam.com/video/Ek3ak-93vas/w-d-xo.htmlsi=2A3e4pf2KnAiV4tu
Note: the SAVE plan will cost half as much after July for undergrad loans as it does now! (5% of discretionary income compared to 10% now)
Good luck, I hope this helps, and thanks for watching! -k
Thank you! It’s probably best to consolidate to see what they will count from my history. It’s good to know the SAVE plan is going down and that may lower my payment closer to what it was. Thank you again! This was a very helpful video.
FANTASTIC VIDEO! Thank you for making this. I'm a full class member in the Sweet v. Cardona class action lawsuit, and I finally had my remaining student loans discharged two weeks ago. I am helping others to also get their relief. Do you happen to know if consolidating into a direct loan affects people's Borrower Defense applications? And if people are in administrative forbearance after submitting their Borrower Defense application, does consolidating their loans affect their forbearance in any way? THANK YOU IN ADVANCE!
Hi @deenaalansky5887 - Is congrats the right thing to say for when someone gets swindled out of money but then is part of a major class action lawsuit and gets relief??? ...congrats?!
I would assume that consolidating would affect the Borrower Defense application since you're essentially taking the loan that's listed on the BD application and making a new loan out of it, when they search for the old loan it might not show up - but I don't really know for sure.
You may have some luck searching/asking on Reddit, but take that (and all online advice from strangers) with a grain of salt.
Good luck and thanks for watching! -k
Retiring with low income, at 70
Check my reply to your other comment, thanks! -k
What if you missed the deadline?what kind I do? And why don’t they offer low payment….how could get in touch with you? I have a question…thank you for sharing 🙏💕
Hi! The deadline has been extended to June 30th🥳 so you still have time.
If you want to chat with someone about your situation I recommend calling the Dept of Education or your loan servicer.
You’re welcome to ask me questions here too!
I have an updated vid coming out in a day on this topic with the new due date, keep an eye out!
Thanks for watching! -k
Missed those deadlines 🥹 I am seeing/watching this video today for the first time. Smh! 🤦🏽♀️
@ms.g.christolin4375 hi! So much changes with student loans every day you may be okay!! I’ve been traveling and haven’t published with the most recent news but keep an eye on the channel so you don’t miss out again!
Thanks for watching, you got this!, and good luck! -k
Have you consolidated your student loans? What was your experience? Thanks and I hope you enjoyed this video! -k
Yes, I have just successfully finished the process, and I am so thankful I learned about it in time. I will comment on your other video as well, I want everyone to know they have this option before it is too late! It is an arduous process for sure, but absolutely worth it. I started in October, and it is now March, so people need to know that if they want to do this, get started now, because it takes awhile! I was fortunate because mine went through with no troubles at any of the steps. I know that some have struggles with the various loan servicers, but I found them all to be efficient thankfully.
Thank you❤
Hello and you’re welcome! Thanks for watching! -k
I havent found any information on those that have already paid off their student loans.
Can we still be eligible if we "re-borrow" the loan and be forgiven for the amount we "re-borrow?"
I recall this was the process when this was first introduced and rejected by the Supreme court.
Hi! I don’t believe there’s a way to “reborrow” the money so you can get forgiveness on it, but I’d be happy to be proved wrong!
Thanks for watching, good luck, and please let me know if you manage this so I can spread the word! -k
The student loan PSLF program has been around for years, why the suggestion of an eminent deadline.
Hi @georgeblackwell2306 - I know, seems odd but here're two of the big reasons:
1. For people with FFEL loans: the PSLF program started in 2007. Until 2010, the loans people got for school were FFEL loans, in 2010 they stopped these types of loans and moved to "direct" loans. Thing is, ONLY DIRECT LOANS ARE ELIGIBLE FOR PSLF. Thus, in 2017 when the first cohort of "eligible" workers applied, virtually no one got it because they didn't have the right kind of loans, they had FFEL loans from the 00s
IF THEY WANTED TO CONSOLIDATE TO DIRECT LOANS, THEY WOULD LOSE THEIR PAYMENT HISTORY AND HAVE TO START THE 10 YEAR CLOCK AGAIN 🤬
Just in the past couple years, with the IDR recount, people have been able to consolidate FFEL loans without losing their payment history (and there are LOTS of people with FFEL still) - April 30th is the last day they're guaranteed to keep their history
2. If you have loans with different payment counts, like you went to undergrad with loans, worked for the government for a few years so that time counts for PSLF (say, 3 PSLF years), then went to grad school and went back to your government job (say 1 PSLF year for grad loans and 4 PSLF years for undergrad), by consolidating them together, you'll have the 4 PSLF years applied to all your loans, effectively taking three years off your grad school loan repayments but ONLY IF YOU CONSOLIDATE BY APRIL 30TH. After that it's a weighted average.
Hope this helps and thanks for watching! -k
I think they have extended it again
Hi! This would be great! I did a quick search and didn’t see another extension, can you provide a link? Thanks and thanks for watching! -k
How do I know if my student loans will qualify for Biden's forgiveness plan? How do I know if it's "commercially held"? What's PSLF? What's FFEL? I"m sure there will be some loophole so I won't qualify.
Hi! You can see who holds your federal loans and what type of loans when you log into studentaid.gov
Here’s my video on PSLF: th-cam.com/video/XrJ0D_uIn-I/w-d-xo.htmlsi=5tHqkFzZR820ECVE
Commercially held loans are loans NOT held by the Department of Education.
FFEL loans are the type of federal loans they used pre-2010. The type of loans they make now are called Direct loans.
Hope this helps and thanks for watching! -k
I applied for SAVE 3 weeks ago. My loans are 2 years old and they are undergrad at 25k. I dont wirk for public service
Hi! Great, SAVE is a fantastic program, I have a vid on it you may find useful, especially it’s forgiveness options: th-cam.com/video/Iz1C8Ou-Bgc/w-d-xo.htmlsi=e_jR6k3aTnBUV-0R
Thanks for watching! -k
I just consolidated all my parent plus loans, and now I would like to apply for the save plan but every time I try to fill-out the application online it only list for icr and the section doesn’t allow me to choose a different income driven option.
Hi @rochellerochelle6831 - You can only consolidate once every 6 months online, to do the second consolidation you need to send in a paper form. I have a vid on the parent plus double loophole process here that goes into how to do it and includes a lot of links: th-cam.com/video/zSyV-aIH2Gs/w-d-xo.html
Is your name Rochelle or is your name a Seinfeld reference😂😂? Inquiring Kates want to know!
Hope this helps and thanks for watching! -k
I am totally confused. I was told by our loan servicer that we must consolidate by April 30th and that I can do all 13 Parent Plus loans together then do another consolidation after this consolidation in order to be eligible for the SAVE plan. I am so confused and in tears at this point because I am not sure what to do or how to do this.
Hi @rcherval - THIS IS GOOD NEWS - YOU GOT THIS!!😀
Based on what you're saying, here's what it sounds like is going on:
You have Parent PLUS loans (PPLs) which are only eligible for one of the four income driven repayment (IDR) plans. To make PPLs eligible for other IDR plans, they need to be consolidated TWICE - here's a video that explains why and the process of consolidating them twice: th-cam.com/video/zSyV-aIH2Gs/w-d-xo.html
Note: You might lose your payment history, meaning the clock will restart for SAVE forgiveness - if you haven't been paying them that long, this is no big deal. If you've been paying for years and are close to some other type of forgiveness that could be a big problem.
Once you consolidate them twice, you'll have access to SAVE, meaning a (probably) lower monthly payment and forgiveness in anywhere from 10-25 years.
Hope this helps and let me know how it goes! -k
if you’re not forgivness, You just recertified your debt that would soon expire and no payment was required.
Hi! Are you referring to the fact that after 7 years of non-payment they drop from your credit report even though you still owe the money? This is certainly one strategy for dealing with student loans but not an ideal one since you still owe the money 😬 .
As always, personal finance is personal and people will need to do what's best for them, thanks for making this important point! -k
Hello! Thanks for the information. I have loans from undergrad and grad school. Would consolidating effect the 20 year cap on my undergrad loans? Or would it just apply my undergrad loan payments towards the 25 year cap for the grad loans?
Hi @MissVL487 - I believe that if you do the consolidation before April 30th you'll get the undergrad 20 year forgiveness timeline but I recommend you call the Department of Education and ask them to make sure. Let me know what they say as I'm sure others have the same question!
Thanks for watching, my fingers are crossed for you! -k
Where can I find someone to help to decide which option is best for me…this is overwhelming 😱😱😱
studentaid.gov Call the # on the contact section. They're very helpful! All of your student loan history is filed on this website. :)
Hi! I recommend you call the dept of Ed or your loan servicer so they can answer all your questions.
Thanks for watching!! -k
I was put on a forbearance with no explanation. 🤷🏾♀️
Hi @snwright77 - This, unfortunately, isn't that unusual. Have you logged into studentaid.gov to see if you can find out what kind of forbearance you're in? If it's administrative, that usually means they're working on your loans and you don't have to pay while it's in admin forbearance. This type of forbearance also counts for PSLF months. You can call your servicer or the Dept of Ed to find out more.
Thanks for watching! -k
Is early loan forgiveness based on total amount borrowed including loans fully paid off? Or just the amount on the initial balance of outstanding loans? (And with all loans having the same repayment date)
Hi @Xergiez - student loan forgiveness on loans still being paid off won't include loans already paid off. As far as they are concerned, those loans don't exist anymore. They look at the individual loan and the number of months in repayment.
Thanks for watching! -k
Consolidation is kot good for me. I have low income
Why is consolidation not good for you?
Hi! You'll need to speak with someone at the Department of Ed to find out more about what would happen if you consolidate your loans - it may or may not be a good idea depending on a lot of factors.
Thanks for watching! -k
Should you consolidate your loans, apply for SAVE and then apply for PSLF?
Hi @alexbarragan1226 - if consolidation and the SAVE plan are right for you, that would be the correct order.
The last step in consolidating is choosing a payment plan, so step 2 is wrapped up in step 1.
SAVE isn’t always the cheapest monthly option but if you’re going for PSLF you need to be on one of the income driven repayment plans - of which SAVE is often the best option.
Thanks for watching! -k
Yes the site walks you through the process.
Thank you so much for the helpful information. I currently have 4 FFEL loans from undergraduate that are currently commercially held with total amount of about $3K left (I started repayment in 2009, with about 9 months of payment, the rest were in school deferment until I went to graduate school in 2012-16). I also have 12 other graduate loans (about $200K total) that are currently direct loans with the dept. of Education and I made payment on the graduate loans in 2017. What would you advise me do to take advantage of the one time IDR adjustment count?
Hi! I think you will need to call the Department of Ed to get confirmation on this for your situation as there are many factors that will go into what payment count would show up on your new, consolidated loan, before you make any moves. They are overloaded with calls right now, have something to do while you're on hold...
Here's what I know based on the info provided - you can consolidate undergrad and grad loans and you should have the longest payment count applied to the "new" consolidated loan - periods of in-school deferment DO NOT COUNT towards your payment count - assuming there are no other deferment or forbearances, it sounds like you should have about 11 years worth of payments for your undergrad loans. This way you can have that longer payment count applied to ALL your loans - - this may or may not provide you with benefits, you can read more about consolidation here: studentaid.gov/manage-loans/consolidation
You don't have to consolidate everything together - **it would probably be wise to at least consolidate the FFEL loans and move them away from the commercial lender so you can have all the benefits of Direct loans** (like 4 income driven payment plans instead of one). But this would need to be done before April 30th to not lose your payment count.
Hope this helps and thanks for watching! -k
And what hapen if we are not making enough money to survive and retiring next year
Hi @TheBismila1 - I'm sorry to hear you're having a tough go of it - luckily the Department of Ed has been doing a TON to help people like you. I recommend checking out the options on studentaid.gov - especially the income driven repayment plans.
The SAVE plan has a TON going for it, not least of which is $0 payments if you have a low enough income AND they cover the interest so the balance never goes up, then it offers forgiveness after anywhere from 10 - 25 years depending on the amount and type of loans you have.
Here's a link to my video on SAVE: th-cam.com/video/Rz38mIVocoA/w-d-xo.html
Good luck and thanks for watching! -k
I’ve got direct Staford subsidized and unsubsidized. What do I do. I’m in income driven repayment. But they aren’t consolidated.
Hi- I can’t tell you what’s best for you, but as I lay out in the video if you have loans with different lengths in repayment and you consolidate today then the longest payment history will be applied to the new loan, effectively taking time off the loans with shorter payment histories.
Good luck and thanks for watching! -k
So I had to consolidate a few years ago because repayment was going to be over $800/month combined. I ended up consolidating with Mohela through SoFi. Am I essentially up a creek without a paddle?
Hi @haxelhimura - If you consolidated to a PRIVATE student loan than this wouldn't apply to you. You can see your FEDERAL student loans here: studentaid.gov
That website will tell you all the details of your loans. I've gotten some comments that it's having trouble today (surprise - everyone's overloading the site days before a big deadline!) so it may take a few tries.
Good luck and thanks for watching! -k
Can I consolidate plus loans if I only have a single loan under edfinancial?
Hi @chris1234j - As far as I know the only time you can consolidate a single loan is if it's an FFEL loan. Here's what the Dept of Ed says (studentaid.gov/manage-loans/consolidation):
"You may reconsolidate a single existing FFEL Consolidation Loan under any of the following circumstances:
If you’re in default or your loan is delinquent and has been referred for default aversion and you agree to repay your new Direct Consolidation Loan under an income-driven repayment plan
In order to qualify for the PSLF Program
To use the “no accrual of interest benefit” for active duty service members, which states that you’re not required to pay the interest that accrues during periods of qualifying active duty military service (for up to 60 months) on the portion of a Direct Consolidation Loan that repaid a Direct Loan Program or FFEL Program loan first disbursed on or after Oct. 1, 2008"
thanks for watching! -k
Thank you so much for breaking this down! 😊 One thing I'm still unclear on. I have a mix of undergrad and grad Direct loans with undgrads at 115 months toward PSLF and grad loans at 70 months toward PSLF. A significant amount of those 115 months on undergrad loans were deferment or forbearance while I was working on grad classes. Those months are currently counted toward PSLF even though I didn't make a payment. Am I understanding you correctly that I should NOT consolidate because I'd lose credit for those months? Again, thank you for doing this awesome work!
Hi! In-school deferment is not normally a qualifying payment for PSLF, but if your PSLF-qualifying counter is saying 115 / 70, then there are other circumstances going on and you're good!
I'd call the Dept of Ed to double check for your particular situation before you make any moves, but based on the consolidation rules through June 30th, you should have 115 applied to the new, consolidated loan and take YEARS off those grad school loans - yay!!!
FYI - they're updating PSLF right now so if you log onto Mohela it might show $0 owed, it's because the money is now owed to the Dept of Ed and the loan is moving over there. The Dept of Ed's website will be updated in July to show the correct amount.
Thanks for watching and let me know how it goes! -k
@@themoneylibrarian You're awesome. Thank you! I'll follow up after I speak with them in case it helps anyone else.
How does this work for cosigners if the person who took out loan isn’t paying their loan can a cosigner of a navient loan apply for idr?
Hi! I’m sorry to hear you’re stuck in this situation!
I don’t believe the federal government allows for co-signers on federal student loan and this program only applies to federal loans, are you sure these aren’t private student loans? If so, here’s a great article on how to separate yourself from being a co-signer on a private loan: www.investopedia.com/how-to-get-a-student-loan-co-signer-release-7372689
Good luck and let me know how it goes!! -k
@@themoneylibrarian Thank you for replying. I’m not sure I will have to check into what kind of loan it is. If the person that took out the loan consolidates the loan I’m wondering if I would be able to be removed as cosigner automatically?
Hi @kimg2022 - If it is a federal loan it'll be shown on studentaid.gov - not sure if cosigners can log on or if you'd have to have the main borrower log on for you.
however, like I said, it's probably a private loan in which case your first step is to call the lender and ask if it's possible to release co-signers, or if not, what your options are to get your name off the loan.
Good luck! -k
Thank you! 😊
If I consolidate my loans will they be forgiven after or is there extra steps ?
Hi! They’ll have to meet the qualifications to get forgiveness - just because you consolidate doesn’t mean you’ll get forgiveness.
As for timeframe, they would be forgiven after the consolidation as soon as all the qualifications are met.
You need to apply for PSLF, don’t need to do anything for IDR forgiveness.
Hope this helps and thanks for watching! -k
So I checked my student aid acct and I have 3 direct subsidized loans and 3 direct unsubsidized loans. Does that mean I can consolidate those loans? Still have a hard time understanding what to do as far as consolidating and taking advantage of what you are talking about.
Hi @tobtob7696 - You can consolidate these to (as I understand it) one loan with two arms - - so it'll be a new Direct Consolidation loan with a subsidized and unsubsidized arm.
Watch the video again and this should become more clear but the reason to do so before April 30 if you have Direct loans is if you have different payment counts for them and are going for forgiveness
- - say you have one you've paid 60 times and a second you've paid 20 times, and you'll get forgiveness in 120 payments via PSLF, then you'd want to consolidate because that would take off 40 months you'd have to be in repayment for the second loan.
Consolidating can have a lot of effects on your loans, learn more here: studentaid.gov/manage-loans/consolidation
Hope this helps and thanks for watching! -k
@@themoneylibrarian Thank you. Just got off the phone with student aid and loan servicer. I was told I was authomatically put in the SAVE plan and that I didnt need to consolidate anything. I have 3 direct subsidized loans and 3 direcr unsubsidized loans. I hope they arenr misleading me 🤔
Hi - Glad you contacted them - my fingers are crossed for you!!
The only reason it sounds like you might want to consolidate is if they have different payment counts and you want to get forgiveness via PSLF or the SAVE payment plan options. Otherwise, there probably isn't a reason to consolidate.
Good luck and thanks for watching! -k
Awesome video! I have a question. I just consolidated, and I see the approval for IDR/SAVE. The loan servicer stated they don't have that information yet and will have my loan in forbearance until June. Is it supposed to be in forbearance? Thanks!
Hi! Usually when they’re working on loans (like consolidating or putting on a new payment plan) they put the loans into “administrative forbearance” while it’s being processed so this sounds normal to me.
Thanks for watching! -k
Is it that we had to consolidate before April 30th or just turn in the application. Bc the website glitched for me and I had to send in a printed application on exactly April 30th.
Hi! I'm not sure if having it postmarked by the 30th will count the same - I'll do some more digging and see if I can find an answer for you. Thanks for watching and good luck! -k
@@themoneylibrarian Thank you!
My dad has a PPL for 29k and has only made one payment. I (student) have 27k in federal loans (4 subsidized and 4 unsubsidized). None of these are consolidated yet. We plan to consolidate before the April 30th deadline but would appreciate any advice!
My dad is a public servicer worker that would qualify (for the Parent Plus Loan) Do we need to consolidate this which would make it a direct loan in order to enroll in one of the IDR options? Which option is best?
For my federal loans... is it best for me to consolidate them and enroll in SAVE program? How do people decide which student loan servicer is best?
Also - does anyone know if combining my federal loans with the Parent Plus loan can be beneficial or not in this situation?
I also pay 600 a month for private loans which I am assuming does not factor into any of this.
Any help would be appreciated!
Hi! For the Parent Plus loan, it has to be consolidated TWICE to have the other IDR repayment options (SAVE usually being the cheapest monthly option) I recommend he watch my video on the double consolidation loophole (if he has more than 2 PPLs) before doing this first consolidation so he doesn't close that option for him: th-cam.com/video/zSyV-aIH2Gs/w-d-xo.html
If you decide consolidation is best for you, you'll be asked to choose a repayment option at the end of the process - it should give you the monthly payment amounts and estimated payoff date for all the IDRs. I'd avoid the graduated and extended plans as they don't offer forgiveness. Here's my overview vid on the different payment plans: th-cam.com/video/SfuPciHkT1k/w-d-xo.html
You cannot combine your loans with your dad's loans since they are to different people.
Your private loans will have no effect on your federal loan repayments.
Hope this helps and thanks for watching! -k
I am in PSLF, I’ve been working for nonprofits since 2/2015, I’ve made 195 payments. Do I still need to have worked at a nonprofit for 10 years? I’m one year away!!!
Hi @j3zzuhkah - you have to make 120 monthly payments while working for a qualifying organization. There's no way to speed up the clock by sending in more payments (although LOTS of people ask this question)
The consolidation could help if you have one loan with 100 qualifying payments and another loan with 50 qualifying payments. By consolidating before April 30th, they'll take the higher payment count!!
Call the Dept of Ed to confirm for your situation, of course, since I don't know the details.
I have a lot more information on how PSLF works that should be helpful to you in this vid on it: th-cam.com/video/XrJ0D_uIn-I/w-d-xo.html
Thanks for watching and good luck!! -k
do you have a video on dealing with mohela? i have a problem with them where they messed up the payment term of one of my loans and it shows i have to pay it off in 12 months instead of 120 so the monthly payments are expensive as hell and it hasn’t started yet but i’m in tears. it would be like $800/mo instead of $80/mo for the minimum monthly payment.
Hi @xursssulaxx - ugh, if I had a nickel for everytime people complained about Mohela I'd have like...enough to buy all the fancy skincare I want ( which is to say, hundreds 😤).
Sorry to hear you're dealing with this - you're not alone - unfortunately this is really common. 🤬
You have a lot of ears that WANT TO HEAR YOUR STORY and will take action for you! Because of people complaining, Mohela wasn't paid by the government last fall (www.theguardian.com/money/2023/dec/07/student-loan-payments-mohela-billing-errors) - and as my old teacher used to say "hit 'em where it hurts, their pocketbook"
Here are the big orgs to send your story to - I'd DEFINITELY put in with the Dept of Ed and CFPB, and recommend doing the other two as well:
☀️ Dept of Ed: studentaid.gov/feedback-center/
☀️ CFPB: www.consumerfinance.gov/complaint/#student-loan
(the CFPB actually got my loan issue fixed up in a DAY when I had problems a few years ago)
☀️ Your ombudsman: freestudentloanadvice.org/ombudsman-list/
☀️ Your state AG: www.naag.org/find-my-ag/
YOU GOT THIS!!!
Best of luck, let me know how it goes, and thanks for watching! -k
I currently have 11 federal student loans (some DL Stafford Subsidized/Unsubsidized, some Special DL consolidation unsubsidized, etc.) and each have varying amounts, interest rates, and qualifying PSLF payments. Most of my loans (9 out of 11) have made 83 qualifying payments towards PSLF, while two loans are at 69 payments. I am considering consolidating all my loans into one for ease of management and potentially better terms.
However, I've come across conflicting advice regarding the impact of consolidation on my PSLF payment count. I was under the impression that consolidating loans would reset my qualifying PSLF payments to ZERO for the new consolidated loan, which means I would lose all progress made towards the 120 payments required for forgiveness under PSLF.
I feel your video implies that consolidating would set my payment count to 83 instead of resetting it to zero. Could you please clarify if this is the case? I want to ensure I make the best decision based on accurate information. Thank you!
Hi @dchardin1 - it is confusing out there! Right now, before April 30th, they are simply applying your highest PSLF count to your new loan when you consolidate.
From what you’ve said, it sounds like consolidation would mean the new loan would have 83 PSLF months.
When you consolidate, it takes a bit of time for them to go through and apply this to the new loan, so EVERYONE’s new, consolidated loan will show “0” for their PSLF count initially. It takes a few months for it to reflect the right number.
I would only be careful of adding Parent Plus loans into a new, consolidated, loan as they have very strict rules that don’t go away with a single consolidation.
Hope this helps and thanks for watching! -k
@@themoneylibrarian OK so I am filling out the application online to consolidate my loans. There is a statement in the terms-conditions that read exactly as follows;
"Any payments I made on the loans I am consolidating (including any Direct Loans) before the date of consolidation will not count toward
the number of years of qualifying repayment required for loan forgiveness under the REPAYE Plan, the PAYE Plan, the IBR Plan, or the ICR Plan (see BRR item 11), or
the 120 qualifying payments required for Public Service Loan Forgiveness (see BRR item 15)." I mean, that kind of sounds like my counter would be set back to 0. What do you think?
I went to a private trade school for my Licensed vocational nursing license. I have 4 FFELP loans (2 subsidized and unsubsidized loans) in default for over 7 years. I have a total balance with accrued of about 31k. I’m worried about consolidating since the student loan is no longer in my credit report. What are the required years and/or number of repayments for forgiveness to be retroed to the to the loan?
Hi @bryantt.2831 - I believe you will always be liable for the student loans, even if they are no longer on your credit report. Luckily, between this consolidation and the Fresh Start program, you have some good options.
There is a limited-time Fresh Start program (ends Sept 30, but get on this asap) which, as I understand it, will get your loans out of default without a negative mark on your credit report - - studentaid.gov/announcements-events/default-fresh-start
I don't know how consolidation would work with the Fresh Start program, you'll need to call your loan servicer (they have all the numbers on the website I linked to) to find out what your next steps should be.
Good luck, thanks for watching, and let me know how it goes!! -k
Hi, I’m trying to follow the steps to do this, it’s prompting picking a new loan service provider. Is that correct? I thought it’s getting everything directly from doed to qualify. It’s giving the option of mohela, aidvantage, or edfinancial
Also does it make a difference to choose the SAVE plan vs IBR?
Hoping to get the Biden Ai forgiveness, but never got the email, from what others have said it’s cause it’s an FFEL loan that needs to be consolidated directly.
Hi! There could be a lot of reasons why it’s asking you to choose a servicer, to get the application in you’ll have to choose one.
For forgiveness, chances are it is because you have FFEL loans, they need to be Direct loans first but call the Dept of Education to confirm.
I have a video on the different income driven repayment plans here that explains why you may want to choose SAVE or IBR. It should help a bunch: th-cam.com/video/Rz38mIVocoA/w-d-xo.htmlsi=BPTfs4HkO0YUYtG5
Hope this helps and thanks for watching! -k
I have 2 parent plus loans. I’ve been in forbearance and deferment since 2013. I applied and then cancelled my online consolidation application because I read something about double loophole consolidation instead but I’m confused as what to do or if I still have time. Please advise 🙏🏽
Hi! I have a video on the double loophole consolidation here: th-cam.com/video/zSyV-aIH2Gs/w-d-xo.html
Note that the dates were changed since I filmed. It's too late to have your previous payments still be counted towards the "new" loan BUT you can still do the loophole through mid-2025 which will open up the other IDR payment plans but reset your clock, so you'll have to weigh your options.
Good luck and thanks for watching! -k
Should I consolidate my 2 loans. The first one has 21 PSLF eligible payments and the 2nd one has 118 PSLF eligible payments. I can’t get ahold of the dept of education 😫
Hi @Jessie60151 - I can't tell you what to do with your student loans but based on this information, this consolidation might get rid of that first loan in two months (as long as neither are Parent PLUS loans).
The Dept of Ed is slammed right now, you may have to be on hold a few hours but if you can get rid of that loan, it's probably worth it. 🤩
FYI - I'm putting out a short later on this but PSLF is being streamlined in May and June so they won't be processing applications then.
Good luck and thank you for watching! -k
@themoneylibrarian thank you for this information. I have 2 FFELP consolidation loans that are in Forbearance through 2027 due to Borrowers Defense. Would it benefit me at all to consolidate again? I do have some months of payment history and several years of IDR payments. Thank you in advance 😊
Hi @shortiisays - Are the loans in admin forbearance until it's determined whether you get forgiveness via Borrowers Defense? I don't know how a consolidation would affect the Borrowers Defense case, you'd need to speak with someone at the Department of Ed.
Wish I had a simpler answer for you but there are too many variables and I wouldn't want you to do anything hastily that you end up regretting! 😬
Good luck and thanks for watching! -k
The ED told me to apply anyway saying it wouldn’t hurt.
@TSBOFRLM this is, for the vast majority of people, going to be a good thing - if that’s what they said then you are probably good to go!
Thanks for watching! -k
How are you supposed to select a servicer and where are you supposed to send the completed application for loan consolidation if the studentaid website is not working?
Hi @michaelyuan3382 - uh oh, sounds like their site is getting WAY more traffic than normal (probably due to this consolidation deadline).
Thanks for letting me know - I assume they'll have it up and running again soon but I wouldn't be surprised if this issue keeps happening for the next few days as the deadline approaches.
GOOD LUCK!!! -k
@@themoneylibrarian I am able to log in, but when I try to confirm my contact information, an error message reads " An unknown error has occurred. Please try again later or close all browser windows and start over." One chat rep told me on March 30, 2024 that this is "an ongoing issue." It's not a problem that just came up last week. I have tried different browsers (Chrome, Firefox, Edge), computers, networks, fiddled with and switched off ad blockers, VPN server locations, etc. Nothing has worked so far. I am able to fill out a paper application and can send it by snail mail postmarked by the deadline. But I just need to find out how: which consolidator I should send it to and what is their address. Does anyone have any ideas?
Oh no! Sorry to hear you’re having such trouble with the computers, sounds like you’ve done everything to fix it!!
This website has useful info for where to send :
Https://studentloanborrowerassistance.org/for-borrowers/dealing-with-student-loan-debt/repaying-your-loans/consolidating-loans/apply-for-consolidation/
Good luck and thanks for watching! -k
I kept getting emails about this I thought it was fraudulent
Hi! Yeah, it sounds too good to be true BUT IT IS🥳😍!
If the emails were from the dept of Ed or your loan servicer (both of whom have been reaching out to borrowers) then they are legit - if they’re from anyone else, probably best to ignore it.
Good luck and thanks for watching! -k
My loans were with the Department of Ed - transferred to Navient, transferred to FedLoan transferred to Mohela.
I previously consolidated but thought I had no control over the transfers. I have been in public service for 10 years but not sure if I have all the qualifying payments because I did pause several times when times were tough.
In addition, my school appeared on the list of schools found to have predatory practices. I filed the borrowers defense application and my loans were deferred for 5 years. That is where they sit since 2022. How do I transfer my loans back to Department of education? Since the federal unpausing of loans - my loans have increased almost 20k. Will consolidating at this time affect the borrowers defense deferments?
Hi! I’m sorry to hear you went to a predatory school☹️ but glad for the program.
Unfortunately I don’t know how consolidation affects Borrower Defense. You can log into studentaid.gov and see the status of your loans. If you find they aren’t held by the dept of education then I believe you can consolidate to have them put back to the dept of Ed but that could affect your Borrower Defense case. There may be more data there to give you help on what to do.
I’ll dig around a bit and see if I can find you information.
Otherwise you’d need to speak with the dept of Ed but they’ll be super slammed today so expect to be on hold
Good luck and thanks for watching! -k
@@themoneylibrarian thanks for the response. I am in the process of trying to contact the borrowers defense customer service in addition to studentaid.gov.
I finally paid off my undergrad (98-01) and grad (04-06) loans consolidated through NelNet in 2022! I've worked for public schools and public libraries for almost 20 years. Is there anything i could do for retroactive repayment?
Hi! Congrats on paying off your loans!!
I'm sorry to hear that neither NelNet nor your employers nor your school ever informed you about PSLF. 😡😡😡
As far as I know, there's no way to get your payments back if you no longer have the loans. ☹️
Just because I don't know about a way doesn't mean there isn't one!
You may want to dig around and see if others who have been in your boat have had luck.
Otherwise, you can put in a complaint with the Department of Ed (studentaid.gov/feedback-center/ ) and/or CFPB (www.consumerfinance.gov/complaint/ ) so they are tracking this kind of behavior and it is less likely to happen to others.
Wish I had better news for you! Thanks for watching and - bright side - your loans are gone!! -k
My mothers 36k loan is from 1993!! im putting together a time but aidvantage and navient closed them but shes still worried about them she stopped paying a while back because of the interest snowballing. would the forgiveness help wipe these loans?
Hi - ugh! Sorry to hear she’s been struggling with these federal student loans for so long.
it sounds like this consolidation could wipe them from her history (but who knows, there are a lot of ins and outs) as they’d be forgiven through IDR forgiveness - she needs to talk to the department of education and find out what her options are.
Good luck and let me know how it goes!! -k
Hi and thank you so much or this information. I am currently on IBR standard plan, will I be put back on repayment once the consolidation gets approved? Will I be able to get back on an IBR plan, I am woking part time (self-employed) after cancer treatment and I have a current 0.00 monthly, I cannot afford to be put back on repayment.
Thanks :)
Hi @francesviera4216 - Sorry to hear you're going through cancer treatment, good luck with your health!!!
When you apply for consolidation they'll ask you what payment plan you want to go with for your "new" loan at that time you can choose "IBR" if it's what's best for you.
I have a video that outlines all the different payment plans which may help to clarify which would be best for your situation: th-cam.com/video/Rz38mIVocoA/w-d-xo.html
Thanks for watching! -k
Can anyone dumb down for me.... what if I just paid off my entire loan? Is there any refund or forgiveness for loans that are already paid for?
Hi @Riicefrenzy - This question has been asked by others who paid off their loans only to find out later that they would have been eligible for a forgiveness program.
They do not refund paid-off loans that would have been eligible for forgiveness. Here's a website that has the different loan forgiveness programs. You may want to look through before deciding to pay them off: studentaid.gov/manage-loans/forgiveness-cancellation
Thanks for watching! -k
@@themoneylibrarian Thank you for a prompt response! So sad that they do not refund... The timing is a bit unfair.
I haven't started law school yet but I want to take out a direct unsubsidized loan and a grad school PLUS loan. I already work full time for a nonprofit organization, so I want to see if I can start making payments on those loans while I'm in school as a part time student and have them count towards the 120 qualifying payments. I'm not sure if I can do that though!
Hi @veganchailatte - Sounds exciting, congrats!
From: studentaid.gov/manage-loans/forgiveness-cancellation/public-service/questions#qualifying-payments
"If you receive new Direct Subsidized Loans or Direct Unsubsidized Loans when you return to school, you won’t be able to make qualifying PSLF payments on those loans while you are in school. Any new Direct Subsidized Loans or Direct Unsubsidized Loans you receive won’t enter repayment until the end of the six-month grace period after you leave school. Although you could voluntarily make payments on your new Direct Subsidized Loans and Direct Unsubsidized Loans while you are in school or during your grace period, those payments wouldn’t count toward PSLF."
Although this looks like you won't be able to make PSLF payments, I believe that's if you're more than half-time at school. If you'll be working full time as well, there's a chance that if you're *less than half-time at school* and potentially you could enter a qualifying repayment period while in school but I'm having a hard time finding documentation on this.
I recommend contacting your school's student aid office and the Department of Education to ask them what your options are.
Wish I had more concrete information for you! Good luck and let me know what you find out as others may have this same question.
Thanks for watching! -k
@@themoneylibrarian Thank you so much!
Just finished applying today the 30th
Congratulations 🎊 🥳🥳🥳
Where did u apply ? I’m trying to apply but don’t know where to start
@mathmatters1064 hi! You can apply at studentaid.gov/loan-consolidation/
Good luck and thanks for watching! -k
I was told by Mohela all this in the video is only for those seeking PSLF, is that true @themoneylibrarian? I was told that if I consolidate older and newer loans, that the new consolidated loan would not receive credit from loan with the longest repayment time. It would be 0. Consolidation only applies to those seeking PSLF, hence the title “Payment Count Adjustments Toward Income-Driven Repayment and Public Service Loan Forgiveness Programs”
Hi - Mohela was half right, as you said, it applies to anyone seeking forgiveness via either PSLF *or* an income driven repayment plan (which gives forgiveness in anywhere from 10-25 years).
There could be something with your particular situation that made them think consolidating would bring your count to "0", but I can't think off the top of my head what that could be.
Here's my vid that goes through the four IDR plans and when you get forgiveness on each: th-cam.com/video/Rz38mIVocoA/w-d-xo.html
Hope this helps, good luck, and thanks for watching! -k
I plan on doing the PSLF and I’m torn about consolidating or not. I hear good and bad things. I’m not sure if it will even benefit my situation? I have 9 direct loans some from undergrad (2017-2019) and the others from grad school (2021-2023). I haven’t made any payments because they were paused during COVID and then in deferment during grad school. Right now my loans are under the SAVE plan. Also, how does consolidating cut off months/years off payments if the PSLF requires 10 years of payments. Sorry I’m just confused about that!
Hi @karlymoorefield1123 - You aren't alone, it's confusing!
As I mentioned, the best thing you can do is talk with the Department of Ed.
From what I know of your situation, it's possible consolidation could benefit your situation if you were working for a PSLF-qualifying employer full-time during the Covid payment pause as those months (assuming you hit every other requirement) count for PSLF even though you weren't required to pay.
For example, if you were in repayment status, working for a non-profit or gov. but not paying due to the covid payment pause from March 2020 - July 2021, those months should count for PSLF, so you'd have about 17 of your required 120 payments on your undergrad loans.
But you also have grad loans from 2021-2023.
In this scenario, if you consolidated before April 30, even though you haven't been in repayment status with the grad school loans, your grad school loans would have these 17 months applied to their PSLF status, essentially taking a year and a half off these loans.
In-school deferment months do not count for PSLF, even with the IDR recount.
Hope this helps, call the Department of Ed to learn more for YOUR situation as I made a few assumptions here so this very well may not apply to you, and thanks for watching! -k
Thank you so much for your reply! You have no idea how much that helped clarify some things. I called my loan servicer and it just made it more confusing because they were just reading off prompts as quickly as possible. Thanks for doing what you do and helping people!
Yay, thanks for your kind words, glad I'm able to help, and good luck with your loan servicer! -k
Didn't realize I had to consolidate my loans (I applied for SAVE instead many months ago). I was aiming the for SAVE Plan forgiveness, I'm sure I took out less than $12,000. I have 3 FFEL loans (2x Unsub Stafford, 1x Unsub Direct) from two different servicers. Just one of my loans IDR count is at 88 months (7.3 years), no info on the other two. Btw, I have never worked in the public sector. At this point, all of this is confusing.
Hi @TheHandHistoryVault - this stuff is genuinely confusing, but hopefully I can clear some stuff up. You’re actually in a good spot!!
FFEL loans are not eligible for the SAVE payment plan unless they are consolidated to Direct loans first. So that’s your first step (if you decide that’s best for you)
When/if you consolidate, during that process they’ll ask what payment plan you want for your new loan, at which point you say “save”.
As long as you consolidate before April 30, they’ll keep your payment history so you would be eligible for the SAVE 10 year/$12,000 forgiveness which it sounds like you’ll get in 32 months.
Now, don’t go trusting strangers on TH-cam! 😉 I’d call the dept of education to make sure - expect to be on hold for a long time, they’re super overwhelmed right now, so have some errands around your place to get done!
Chances are the SAVE plan is best for you, I have a vid comparing all the IDR plans here you may find helpful: th-cam.com/video/Rz38mIVocoA/w-d-xo.htmlsi=RxugbiPPd7b1jM_v
Hope this helps and thanks for watching! -k
@@themoneylibrarian Thank you for the reply. I consolidated my loans today under SAVE. I'll see what happens, wish me luck.
Congrats and good luck (although I don't think you need it)!
Like I said in the vid, everyone's payment count resets to "0" when they consolidate, so don't worry if you see that - it'll get updated in time.
Cheers! -k
How do we know if moving from Navient to an IDR would increase our monthly payment? Can you switch to the standard repayment plan instead of IDR to still get the recount?
Hi @sydneykovacs4207 - During the consolidation application, they will show you what your monthly payment would be on the various payment plans - if you decide you don't want to consolidate, you can stop there and just not submit the application.
They are reviewing the account of every borrower who has at least one Direct loan or FFEL loans held by the Department of Ed. If either of these apply to you, you'll be a part of the recount.
You can read more about the recount here: studentaid.gov/announcements-events/idr-account-adjustment
Thanks for watching! -k
@@themoneylibrarian Thank you. If the loan has been paid at Navient for 17 years and moves to an ED provider by 4/30 but switches to like the extended payment plan which would "reset" the clock for 25 years would the loan be forgiven in three years barring any expedited adjustment from the count? I guess I'm asking if I hit 20 years even though 17 were at Navient will the forgiveness still apply if I move to an ED provider today?
Hi! From what you've said, as long as you consolidate before the 30th they will keep your payment history even if you move servicers. (everyone will show "0" payments initially, it may take a few months for the payment history to show up though)
This way you can get the 20 year forgiveness offered by some of the income driven repayment plans.
You mentioned the Extended Payment plan - the extended payment plan is NOT an income driven repayment plan and does not give 20 year forgivness (studentaid.gov/manage-loans/repayment/plans/extended) - - you're probably better off choosing one of the income driven repayment plans.
It's all VERY confusing - here's my breakdown on ALL the student loan repayment plans to help you navigate this: th-cam.com/video/SfuPciHkT1k/w-d-xo.html
Hope this helps and thanks for watching! -k
Doesn’t consolidation restart the clock, making even almost 20-year loans combined with 10 year-old loans become one brand new loan that will NEVER age out during our lifetime?
Hi @DazLa1 - Normally, yes, you lose your payment history. That's why today's deadline is so important - through today they'll apply your longest payment history to the new, consolidated student loan.
Thanks for watching! -k
@@themoneylibrarian THANK YOU!!! ❤
Do you happen to know if the DoE “looks through” a prior consolidation loan to when the previously consolidated loans were first in repayment? e.g. undergrad loans started repmt in 2005 and those were consolidated in 2012 - will they look back to 2005 for earliest “start” date for repayment (for purposes of the 1x adjustment)?
EDIT - I think I found answer when I rewatched video in one of the slides you put up (and also on the DoE site). Seems that pre-consolidation payments should count based on what I’ve found.
Hi - normally they don’t but if you have a direct loan or an FFEL held by the department of Ed they are currently undergoing a recount of those student loan histories (studentaid.gov/announcements-events/idr-account-adjustment )
I don’t know your particular situation, this could be very good for you considering SAVE offers undergrad forgiveness after 20 years. It sounds like it would be very beneficial for you to have your loans as part of this recount that they’re wrapping up.
Please go to that website to learn more as this could help you a lot. It can feel confusing but it’s worth it!
You may also just want to call the Department of Ed to find out what you need to do to be a part of the recount if you aren’t already. Prepare to be on hold, they’re kinda overwhelmed right now.
If you do need to consolidate to be a part of the recount, that must be in BY April 30th.
Good luck and thanks for watching! -k
TY! Yep sorry I rewatched and I also dug around DoE - seems like they do count as part of this “one off” audit / adjustment. Thx again!
Excellent! Good luck and let me know how it goes!
I have loans from 25 years ago, sub and unsubsidized. I also have parent plus loans that haven’t been paid on yet from my 2023 graduate. Do you suggest consolidating all of them or just my old personal ones? The lady at direct loans wasn’t sure
Hi @KellyElaine-dt3fq - If your loans are so old they should get forgiven soon via IDR forgiveness. (Here's my vid on the four IDR plans and how long it takes to get forgiveness on each: th-cam.com/video/Rz38mIVocoA/w-d-xo.html )
Parent Plus loans (PPLs) have a lot of restrictions those old loans don't. Because of these restrictions, to wipe the "stink" of the PPL off them, they need to get consolidated twice (see my vid here on this loophole : th-cam.com/video/zSyV-aIH2Gs/w-d-xo.html ) which takes months to complete.
It would be risky for you to consolidate the PPLs with your old loans as, in the first consolidation, you will apply the PPL restrictions to the old loans, meaning fewer repayment plans, and, more dangerously, the potential to wipe your payment history and having to start from zero. I just don't know if you would have the payment count kept by the time you do the second consolidation. Wish I had more info for you - you can check Reddit or Facebook groups to read others' experiences
Only you can decide what's best for you - you can log onto studentaid.gov to see the details for your loans.
Hope this helps and thanks for watching! -k
@@themoneylibrarian That's great information, thank you!
During my consolidation application I consolidated all of my direct loans EXCEPT for one loan which the application had checked off (DL in PSLF). However, this loan contains 117 payments that I’ve made, I didn’t consolidate this loan but I listed it down as loans not to consolidate but to consider in the IDR recount. Will my 117 payments on this non-consolidated loan be adjusted to my other loans that I consolidated?
Hi @ericcampos1987 - From my understanding, if you did not consolidate that 117 payment student loan with the others, none of its characteristics will be applied to your new, consolidated loan. You'll have two loans, the 117 DL and the new, consolidated loan, which will have the longest payment count of the loans you consolidated applied to it.
If the new, consolidated loan, has fewer than 117 payments and doesn't include any Parent Plus loans, you may want to consider doing another consolidation before April 30th so the 117 payments is applied to all the loans you took out and you'll only have three months left to pay before you hit your 120 PSLF number!
I recommend you contact your loan servicer to find out more about your current situation, and be prepared to be on hold!
Hope this helps, thanks for watching! -k
@@themoneylibrarian You are a life saver! 🛟
If your payment has been 0 for years because of income, will they forgive those people?
Hi @Naseehah_l - It would depend on what payment plan they are on. If they're on an income driven repayment plan then yes, after anywhere from 10 - 25 years the loans will be forgiven.
I have a video explaining the four different IDR plans here: th-cam.com/video/Rz38mIVocoA/w-d-xo.html
Thanks for watching! -k
@@themoneylibrarian thank you
Can you get this if you are currently in college? My granddaughter is going in her Junior year
Hi - this is only for people who are currently in repayment as far as I know.
Thanks for watching! -k
What about schools that closed,do those loans get forgiven?
Hi! I suggest you look into Borrower Defense to Repayment forgiveness. Good luck and thanks for watching! -k
Thank you ❤️
I have 7 years left on a ffelp loan I’ve been paying since 2002. Is it worth consolidating or should I just wait?
Hi @jayfoisy6413 - Chances are consolidating would be best but you need to chat with your servicer/the Department of Ed to find out more for your own situation.
If your loans are held by the Department of Ed you should be part of the IDR recount in which case they *should* be forgiven in 20 years for undergrad (and if you have been paying for two years when you shouldn't have, you should get a refund check) and 25 for grad (in general, you'll need to check with your servicer to find out what your forgiveness timeline is). Check here for more info on the IDR recount: studentaid.gov/announcements-events/idr-account-adjustment
And to find out who holds your loans, you can log on here: studentaid.gov
If they aren't held by the gov, then you probably do want to consolidate before April 30 so you keep your loan history (don't lose 22 years in repayment!), get included in the recount, and have access to all the different income driven repayment plans which have different forgiveness timeframes.
Thanks for watching! -k
Enjoyed the video, slightly less confused, but only slightly! situation: Grad school loan taken in 2007.....2 FFELP Consolidation Loans, both same loan date and same interest rate ( 7.13%) one with about $750 balance and the other about $7200. Have never missed a payment. Should I do anything or apply for IDR since due to health reasons I am working part time with a low Adjusted Gross income. I could pay the lower loan off if it made things easier. My MBA was less confusing than this!.....
Hi @TheOutdoorsGuy16 - ha! Yes, student loans are far more complicated than they should be!
From what you've said, it sounds like consolidating before the April 30th deadline would have a major benefit of you being able to access the SAVE plan which is most likely the lowest monthly payment (and your balance can't increase) without losing your payment history. I have a vid that walks you through calculating your SAVE payment here (it's very simple): th-cam.com/video/Ek3ak-93vas/w-d-xo.html
I'm publishing a video today about how you can potentially use the SAVE plan to pay off student loans faster and more cheaply than on the standard plan (which is usually the fastest and overall least expensive way to go) - subscribe/keep an eye on the channel as it may be a great strategy for you to finally pay off these loans if you decide not to wait for forgiveness in 2032.
Thanks for watching! -k
@@themoneylibrarian so on the save plan, anything I pay above the minimum would reduce the principal, and if times are tough I could just pay the minimum? So, in essence the term of the loan would be determined by ability to pay additional principal.( until the predetermined payoff date that is.)
Hi! Yes, you have to tell the servicer what to do with the overpayment - but the gov will cover the rest of the interest. Thanks for watching! -k
I had 4 loans. Loan#1 was recently forgiven as it had over 120 PSLF payments. Loan #2 is a consolidated direct loan with over 120 payments not forgiven yet, but seems to be slated to get forgiven but stuck in "Mohela limbo". Loan #3 and #4 are direct loans with about 80 PSLF payments. Should I consolidate these last three loans to take advantage of loan #2 and 120 PSLF payments by April 30 dead line?
Hi @supahone3 - it sounds like you should explore the idea of consolidation of the last three loans! You can call the Department of Ed to get confirmation that by consolidating, you’ll have your 120 qualifying payments applied to the other loans.
I’d do this sooner rather than later!
Good luck, let me know how it goes, and thanks for watching! -k
@The Money Librarian I consolidated by sub and unsub Stafford loans with Direct in 2005 at a 3.1% rate and was on monthly automatic payments of$400 per month once I got a job. Then COVID happened and everything paused. Does it make sense to participate in this. Deadline is today and i need to know if it’s worth my time to do this. Thank you!
Hi - if your loans are held by the Department of Ed (sounds like they are) then probably not but if they aren’t held by the dept of education then probably and get on an IDR payment plan.
I do recommend you look into being on an income driven repayment plan - not an extended payment plan which you may be on. This is because you want to be a part of the payment recount. You can get forgiveness in 20 years for undergrad and 25 for grad
Ultimately only you can make the decision- I have a lot of links in the description and more vids on student loans that may help.
Here’s my vid on the IDR payment plans: th-cam.com/video/Rz38mIVocoA/w-d-xo.htmlsi=Gq7XAVkvdI5L8BYB
Thanks for watching! -k
@@themoneylibrarian wow thanks! 🙏🏼 appreciate your content and the wealth of information you provide us who are so lost about this LOL
@@themoneylibrarian it’s serviced by MOHELA
Hi @Pinkorchid72 - Honestly, that's enough to make one want to consolidate right there 😂 . Mohela...doesn't have a great reputation.
Again, you know your situation best, only you can decide what's right for you, good luck!
Thank you for the kind words! -k
Where do you go for the form?
Hi @spekialcay1 - You can learn more and apply here: studentaid.gov/manage-loans/consolidation
Thanks for watching! -k
Have FFELP loan that dates back to 2003. I just applied for Direct Consolidated loan. I have been working for a local government for over 18 years and have been making qualified payments on this loan, with some deferments here and there. For the past 13 years haven't missed a payment. I have the PSLF application signed by my qualified employer. When do I send the application in?
Hi @MrWoodchuckVT! Congrats at being so close to done with your loans!!
Send in the PSLF form as soon as the consolidation is complete as FFEL loans aren’t eligible and they’ll only be eligible once they’re Direct Loans.
It could take a while for the consolidation to go through PLUS they’re moving all PSLF loans to the Dept of Ed starting next month (this is very good, Mohela has done a shabby job with them).
But, given that the loans are moving servicers, just know all this could take a few months. In that time you shouldn’t have any payments though as you’ll be in admin forbearance. It’s just gonna be a waiting game.
Please tell any coworkers who may also have FFEL loans or loans with different payment counts about the importance of the April 30th deadline. They’ll be super grateful!
Thanks for watching and congrats on being so close to done! -k
@@themoneylibrarian Great info. So glad I found your channel, totally by accident. My payment history from the FFELP loan will be considered, correct?
@MrWoodchuckVT yes, since you applied before April 30th. Just know EVERYONE’S payment count drops to zero after the consolidation, it’ll take some time for the payment count to reflect your years in repayment, but the info will, eventually, populate properly.
So glad you found the channel! -k
I have 3 Direct and 1 FFEL (oldest loan). If I consolidate today, when should I apply for PSLF ?
Hi @juniorbroham - If you decide consolidating is right for you (see this page for more info studentaid.gov/manage-loans/consolidation), after the consolidation is complete you'll apply for PSLF. This may take a couple months, so probably earliest July.
I recommend you watch my other video on what to do NOW if you plan on applying for PSLF in the future so you have all your ducks in a row: th-cam.com/video/gGX7WOwjMjo/w-d-xo.html
If you want more information on how PSLF works in general, this should be helpful: th-cam.com/video/XrJ0D_uIn-I/w-d-xo.html
Hope this helps and thanks for watching! -k
@@themoneylibrarian Thank you so much ! Also, when I consolidating, I would be putting all the loans ( Direct and FFEL) into one loan ? I see the option to select which loans I want to consolidate.
Hi @juniorbroham - Yes, to take advantage of this, you'd be putting them all together. Here's why:
If you consolidate them all together then you'll have the longest payment count applied to all your loans. This can be really helpful for those going for PSLF since, as long as you meet all the other PSLF qualifications for those payments, you can have years taken off the Direct loans.
For example - you have 80 PSLF-qualifying months on the FFEL and 20 on the Direct - now, with the new loan, you'd have 80 qualifying months on it, taking 5 YEARS off the amount of time it would have taken to have the direct loan forgiven via PSLF.
Do read through that webpage I linked to that lists how consolidation works and what it does to your loans so you don't have any surprises.
Depending on your situation, this may or may not be best for you - only you can determine this. You can call the Dept of Ed if you have questions.
Good luck and thanks for watching! -k
Pay your frickin bill. You owe it.
Thanks for watching! -k
Looked at these but none works. 10yrs, and the amount of interest that will be paid to those people. Nah. I'll try to bang mine out as quick as I can.
Hi! Personal finance is always personal and what works for one won’t work for another. Glad you have a student loan plan that works for you!
Thanks for watching! -k
So I have 14 loans, the two oldest(2008) are FFELP Stafford subsidized and unsubsidized. the part in the video about IDR recounts seems to apply to me. I've only paid 2% total of the loan so this seems beneficial to me. but I'm very ignorant on this any sage advice? Also my loan service is DEPT OF ED/NELNET.
Hi @jiko26 - this could be a great opportunity for you! From what you’ve said, you may be able to wrap all your 14 loans into one (or a couple) that will date from 2008 - speeding up the IDR forgiveness clock.
Theres a lot I think you should speak with the Department of Education on (I put their phone number in the description)
IDR forgiveness forgives balances after 20 years for undergrad and 25 for grad school (but sometimes 20 years for grad school see my vid here: th-cam.com/video/SfuPciHkT1k/w-d-xo.htmlsi=KfGhBblW2qBy2r9t)
All this is to say - with IDR forgiveness, and consolidation before April 30th - it may be, MAY BE, that ALL your loans could be forgiven as early as in 4 years 🥹 or 9.
Consolidation (assuming no Parent Plus loans) will also open up the SAVE repayment plan which is often the cheapest monthly payment for most people.
Please CALL THE DEPARTMENT OF EDUCATION AND TALK TO THEM ABOUT CONSIDERING CONSOLIDATION. There are many, many, many details to take into consideration that I don’t have access to and which may help or hinder you.
Good luck, thanks for watching, and let me know how it goes! -k
@themoneylibrarian well should have also said the oldest loans are from another school. Just check my consolidation options, and the time is 2044😢. Edit: Oh, almost forgot the other loans timeliness range from 2011 to 2013. So why so late
Did you call or look online? I’ve heard stories of people looking online and the computer doesn’t take the limited IDR recount into consideration, it only shows them the normal rules of consolidation.
It shouldn’t matter if the schools are different, just the types of loans.
I’d call the Department of Education, say you are considering consolidation under the IDR recount and want to know if by consolidating your history from the longest loans will be applied to the new consolidation loan.
At this time you’d want to also ask about the benefits/drawbacks of the potential new (which is to say the consolidated ) loan - things like what your payment options would be, monthly required amount, and forgiveness timeline.
As I say in the vid, they are busy so allow for a LONG time on the phone but if it could get you out of your student loans, worth it!
Good luck! -k
@themoneylibrarian didn't get D.O.E. but I did talk to Nelnet, and yes, it just didn't account for the recount. So I'm a little relieved but apprehensive until I get the official.
Good luck and let me know how it goes! 🤞🤞🤞