Reconsolidating federal student loans
However, none of the payments you’ve made under an existing FFEL loan repayment will count towards the 120 timely payments needed for full loan forgiveness.After you consolidate your FFEL into a Direct Loan, the number of “timely” payments you’ve made will start from zero.
A federal consolidated loan is also necessary to sign up for PSLF.Examine the ones that are harder to manage, set a budget, and take advantage of using a loan calculator to estimate what your consolidated Direct Loan payments will look like.Can federal student loan consolidation help your debt?Keep in mind, FFEL loans won’t qualify for loan forgiveness their own.So if you’re still paying off an active FFEL balance pre-2010, you’ll need to consolidate to a Direct Loan if you want to qualify for loan forgiveness.Student Loan Hero is not a lender or investment advisor.
We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions.
Depending on the private lender who granted your FFEL loan, certain benefits, discounts or other perks attached to your loan may be lost after consolidating to a Direct Loan. Can you reasonably aim for forgiveness with an FFEL loan?
Examine your options to see if these are something you’d like to give up if you’re close to paying off your loan balance. If you make 120 timely payments on your consolidated Direct Loan, you qualify for forgiveness.
The rates and terms listed on our website are estimates and are subject to change at any time.
Please do your homework and let us know if you have any questions or concerns.
If you’d like to consolidate your federal student loans, click the button below to get started.