Hello All! I’m aware the consolidation deadline is today, but I’ve been hesitant. I had two loans from Sallie Mae in the late 90’s. I consolidated them in early 2000’s to Navient. I’ve gone from deferment, to forbearance, and they’ve been in IBR for a few years now. I was looking for the application for the IBR forgiveness but haven’t been able to find it.
I’m still hesitant to apply for the consolidation because I don’t want the loan to start over. Does anyone know if there’s another way to apply for forgiveness without getting the consolidation? Please let me know.
Thank you!
Tara
Hi Tara,
I am absolutely not an expert, just someone trying to get some loans forgiven like you.
As far as I know there is no way around the loan consolidation piece of the IBR/IDR or PSLF forgiveness programs. Hopefully you consolidated in time.
I think the whole point of the IDR program is that an account adjustment will occur soon (if you applied in time). They keep pushing that off, but allegedly it should be happening this year. So what should happen is you get credit for all the years already paid under that program and you should not have to start over in regards to that. If your loan terms start over it shouldn’t really matter because you should qualify for IDR/IBR really soon (provided you don’t get a high paying job in the interim). Hope that helps.
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Hope it’s working for you. I too had to consolidate for a second time because my loans were so old they wouldn’t otherwise have been eligible for the payment recount. This capitalized all the interest and Navient got even more rich in handing off the loan to another provider. But the loan was consolidated and last week the recount was applied and my six digit loan was forgiven. Gone! So please don’t hesitate! the deadline has been extended to June 30th.
"Borrowers now have through June 30 to consolidate certain types of federal student loans to qualify for the one-time income-driven repayment (IDR) account adjustment, which counts more past periods of repayment toward IDR forgiveness. The account adjustment will be fully implemented in borrowers’ accounts sometime in September. "
I consolidated in April and now my entire loan has been forgiven.
Also there is no penalty for the amount forgiven because of the Jobs Recovery Act which expires at the end of next year.
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Thank you very much @martian! I did apply before the April deadline. I’m getting paperwork saying I have to pay and I have not heard about the forgiveness yet. I’m hoping that comes through very soon.
Be Well,
Tara