If you’re a public service employee and have FFEL Loans, you could qualify for student loan forgiveness simply by consolidating your FFEL Loans into a single Direct Consolidation Loan.
FFEL stands for Federal Family Education Loan, these loans were part of a program of private student loans that were subsidized and guaranteed by the United States federal government. The program issued loans from 1965, and as of July 2010, no new FFEL Loans are being issued.
FFEL Loans do not qualify for the Public Service Loan Forgiveness Program because private lenders provided these federally guaranteed FFEL Loans to students and parents. Only the William D. Ford Direct Loans (and Direct Consolidation Loans), made directly from the Department of Education to students without the involvement of a private lender, are eligible for the Public Service Loan Forgiveness Program.
As mentioned above, your FFEL Loans can become eligible for the Public Service Loan Forgiveness (PSLF) Program if you consolidate them. When you consolidate your FFEL Loans your new balance will be the sum of your FFEL Loans and the new interest rate will be the average weighted interest of your FFEL Loans being consolidated. In other words, your FFEL Loans will be added up, the combined interest will be averaged, and you will have a single loan that will render you eligible for not only the PSLF Program but income-driven repayment plans as well.
Consolidating your FFEL Loans is incredibly easy. You can do it through Federal Student Aid or through Chipper Concierge—we’ll do all the paperwork for you, making sure you consolidate the correct loans, and at the same time, we’ll help you choose the best repayment plan for your financial needs.
Take it from Chipper member, Samantha, we helped her consolidate her loans and choose the right income-driven repayment plan (a requirement for the Public Service Loan Forgiveness Program), which actually lowered her monthly payments to $54/month! After 120 payments, she’ll be forgiven $94,212!
Try out Concierge and consolidate your FFEL Loans to get access to lower monthly payments and student loan forgiveness! One of the number one reasons people aren’t approved for forgiveness is ineligible loans. Don’t be part of the 1% that isn’t approved!
Right now we’re offering Concierge at an incredible $25/year (use coupon code Chipper2021) to help you jump start your 2021 financial goals.
The #1 reason for PSLF denial is misinformation... ineligible loans, incorrectly filed forms, and not meeting all of the requirements for the PSLF program are the consequences of misinformation. If you think you’re on the right path toward forgiveness, I would challenge you to read through each section of this blog to make sure you really are. When it comes time to apply, make sure you’re approved for the forgiveness you deserve!
Qualifying for the Public Service Loan Forgiveness program requires long-term investment and commitment. However, once you complete your 120 qualifying payments, it is pretty straightforward from there to get your student debt forgiven. Make sure to follow the instructions in this blog and if you’re ever confused by which repayment plan is best for you, when to recertify your income, how to fill out the Employment Certification Form, we’re here for you!