No announcement yet.

FFELP loans now available for PSLF...Thoughts on this???

  • Filter
  • Time
  • Show
Clear All
new posts

  • FFELP loans now available for PSLF...Thoughts on this???

    Good afternoon WCI forum. I just learned (through the podcast) that FFELP loans can now go down the PSLF pathway. In short, I have to reconsolidate my FFELP loans to direct loans. Then I can apply for a waiver to have my previous payments (over 13 years worth) count towards PSLF. It looks like I have until October 2022 to get this done. ( My current loan balance is $124,000 with 17 years left @ 2.625%.
    My question for the forum is this. I know that my interest rate will go up as I consolidate to a direct loan. By how much I will have to research. Is this something that is going to be a gamble and I potentially end up shouldering a higher loan interest rate if I get denied PSLF? I do work for a non profit and by all accounts would qualify? What am I missing here? I think I am going to talk to a loan advisor from WCI just to make sure I am not missing anything. Is anybody else looking into this?

    Thank you to Jim and all of the WCI crew!!

  • #2
    1.) Your interest rate will only go up slightly if you just consolidate your FFELP loans. 2.625% will be rounded up 1/8% to 2.75% -- really not much worry here
    2.) There's always a risk in being denied by PSLF, but if you've fulfilled the requirements, it would be a huge benefit to you.
    3.) If you work at a non-profit, assuming your paycheck is actually coming from the non-profit, your employment should qualify and ANY past payments you've made since October 2007 should qualify towards PSLF.
    4.) I've met with lots of clients recently who are going through the same thing as you.

    Your case definitely sounds like a shoe in for the limited waiver.
    Helping student loan borrowers manage their student loans. [email protected]