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Are consolidation loans eligible for PSLF?
If you consolidate loans other than Direct Loans, consolidation may give you access to additional income-driven repayment plan options and Public Service Loan Forgiveness (PSLF).
Will public service student loans be forgiven?
Under the 10-year Standard Repayment Plan, generally your loans will be paid in full once you have made the 120 qualifying PSLF payments and there will be no balance to forgive.
Is public service loan forgiveness a good idea?
If you have a large amount of student loan debt, then Public Service Loan Forgiveness (PSLF) could potentially save you thousands of dollars. It also might knock years off your student loan repayment timeline. You must meet all of the criteria to be eligible for college loan forgiveness, but the payoff can be worth it.
Should you consolidate your Direct Loans before applying for public service loan forgiveness PSLF )?
Do the payments I made before consolidation still count toward PSLF? No. If you make qualifying PSLF payments on a Direct Loan and then consolidate that loan, you’ll lose credit for the PSLF payments. You’ll need to start over and make 120 qualifying payments on the new Direct Consolidation Loan.
Does consolidation affect student loan forgiveness?
Consolidating your current loans will cause you to lose credit for any payments made toward income-driven repayment plan forgiveness or Public Service Loan Forgiveness.
Who qualifies for PSLF forgiveness?
To qualify, you must be working full-time or a minimum of 30 hours per week for a public service loan forgiveness (PSLF) qualifying employer. Eligible loans include Federal Direct Loans and federal loans that were consolidated into a federal consolidation loan.
How long does it take to get Public Service Loan Forgiveness?
“It typically takes 30 days to 45 days for the consolidation to occur,” Kantrowitz said. “Borrowers should do this even if they don’t expect to have 120 payments by the deadline, as the previously ineligible payments will count only if they do this,” he added.
Should I consolidate my student loans to pay for PSLF?
When you apply for a Direct Consolidation Loan, you don’t have to consolidate all of your eligible loans. For example, if you have both Direct Loans and other types of federal student loans, and you have been making payments toward PSLF on your Direct Loans, you should not consolidate your Direct Loans along with your other loans.
Why should I consolidate my federal education loans?
Loan consolidation can also give you access to additional loan repayment plans and forgiveness programs. There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan.
How much does it cost to consolidate student loans?
Learn more about loan consolidation. A Direct Consolidation Loan allows you to consolidate multiple federal education loans into one loan at no cost to you.
Can I consolidate multiple federal student loans?
If you have multiple student loans you may be able to combine them into one loan with a fixed interest rate based on the average of the interest rates on the loans being consolidated. Learn more about loan consolidation. A Direct Consolidation Loan allows you to consolidate multiple federal education loans into one loan at no cost to you.