Are FFEL loans eligible for PSLF?
FFEL Loans are eligible for PSLF, but only after you consolidate the loans into a federal Direct Loan. The limited waiver gives you retroactive credit toward PSLF for payments made on your FFEL Loan under any student loan repayment program.
Is there a cap on PSLF forgiveness?
The Public Service Loan Forgiveness (PSLF) program offers relief to student loan borrowers who work in public service. There’s no Public Service Loan Forgiveness cap; the program forgives your entire balance after 10 years of repayment.
Are FFEL loans forgiven after 25 years?
FFEL loans are not eligible. Only Direct federal student loans are eligible for certain income-driven repayment plans such as Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR), all of which allow for student loan forgiveness after 20 or 25 years of repayment.
Are Ffelp loans forgiven after 20 years?
Forgiveness through income-driven repayment The income-driven repayment plans mentioned above are another FFELP loan forgiveness option. With an IDR plan, your remaining student loan debt can be forgiven in 20-25 years.
Are FFEL loans federal loans?
FFEL loans are federally guaranteed student loans that were originally funded by private companies.
Can FFEL loans be consolidated?
If you have federal loans through the Federal Family Educational Loan (FFEL) program or the Perkins loan program, you may be able to consolidate those loans to qualify for several repayment programs. Consolidating federal loans may cause you to give up other benefits.
How much is forgiven under PSLF?
Depending on the payment plan selected, your forgiveness with PSLF would be up to $24,150.
Should I simulate my repayment under PSLF?
It’s important to recertify on time so that you stay on your IDR plan. If you aren’t on an IDR plan, payments you make after the payment pause ends won’t count toward PSLF. But you don’t have to recertify your income before the end of the payment pause.
Can you consolidate FFEL loans into direct loans?
Borrowers can include FFEL Loans (with the notable exception of Parent PLUS loans) in a federal direct consolidation. By consolidating, the FFEL loan becomes a Direct Loan eligible for forgiveness under the Public Service Student loan forgiveness (PSLF) program.
When did FFEL stop?
2010
In 2010, Congress passed and the President signed into law a bill that eliminated the FFEL program for all new loans made as of July 1, 2010. All federal student loans have been made under the Direct Loan program as of that date.
Can FFEL loans be discharged?
That’s because FFEL loans don’t qualify for forgiveness — only Direct Loans do. If you want to qualify for forgiveness, you can consolidate your FFEL loans into a Direct Consolidation Loan.
Do FFEL loans qualify for PSLF?
These loans are not considered “Direct Loans,” and so they have never qualified for PSLF. Remember the PSLF requirements: What FFEL borrowers have done in the past is consolidate their FFEL loans into a direct loan.
What is PSLF and how does it work?
When Congress created PSLF in 2007, it granted public service workers who owed these federally guaranteed student loans the right to pursue PSLF. To exercise this right, borrowers had to work with their student loan servicers to convert these older loans into a newer type of student loan owned by the federal government, known as a Direct Loan.
What is FFEL loan consolidation?
Federal consolidation eliminates the old FFEL loan and replaces it with a new federal direct consolidated loan. The recent limited waiver from the Department of Education now allows borrowers to count the time before consolidation towards PSLF.
Does the new PSLF program apply to white coat investors?
These rules will admittedly only apply to a small percentage of white coat investors. But if this applies to you, it’s a big deal. The main change to the PSLF Program has to do with Federal Family Education Loan (FFEL) program borrowers. These loans are not considered “Direct Loans,” and so they have never qualified for PSLF.