Our Nelnet Partner Solutions team holds weekly calls so we can share with each other what we are hearing from our school partners. It also gives us an opportunity to discuss what articles we should offer in the Jim’s Blog series, or make available during our Wednesday Webinar training sessions for financial aid administrators, or our Money Monday webinars for students.
Recently, many of us are getting the same question regarding the Public Service Loan Forgiveness Program and loan consolidation. Although this topic has been discussed before, it merits additional attention.
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The basic question we’re hearing is, “may a borrower who has already consolidated their FFEL loans, reconsolidate to take advantage of the Public Service Loan Forgiveness Program, even if they do not have any Direct Loans to add to the consolidation?
And the answer is YES.
This quoted information comes directly from
“Borrowers who do not have Direct Loans may be eligible for a Direct Consolidation Loan if they include at least one FFEL Loan and have been unable to obtain a Federal Consolidation Loan with a FFEL consolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them or intend to apply for loan forgiveness under the Public Service Loan Forgiveness Program. “
So, reconsolidating a current consolidation loan that includes only FFEL loans, combined with the borrower’s intent to apply for loan forgiveness under the PSLFP, makes them eligible to apply for a Direct Loan Consolidation.
Short, sweet, yet not so simple on the surface.
For additional information on the Public Service Loan Forgiveness Program
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