If you consolidate your federal loans, are you disqualified from federal student loan forgiveness programs?

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Posted by Luke Burns (MONEY FORUMS: 4, Answers: 0)
Asked on April 13, 2016 3:30 pm
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If you consolidate your federal loans under the US Department of Education’s Direct Loan Program (free, learn more at http://www.studentloans.gov) then you remain eligible for all federal student loan repayment options as well as forgiveness programs.

That said, if you’re currently in an income-dependent repayment program and consolidate then you are starting back at Payment #1 in calculating time to forgiveness. Unless you’re looking to get into a repayment program that requires consolidation because you’re not currently in a Direct Loan (PAYE, REPAYE, or Public Service Loan Forgiveness) then consolidation may not be your best option.

Refinancing your federal student loans with a private company will disqualify those loans from any federal programs including forgiveness, income-dependent repayment, Public Service Loan Forgiveness, forbearance, deferment, etc.

Hope this helps you make the best choice for your situation.

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Posted by Jay Fleischman (MONEY FORUMS: 0, Answers: 1)
Answered: April 14, 2016 2:51 pm