In April 2022, the Department announced one-time improvements to address historical inaccuracies in the count of payments that qualify toward forgiveness under IDR and practices by loan servicers to put borrowers into forbearance in violation of Department rules. As a result of these past failures, borrowers who were in repayment for 20 or 25 years or …
Quick Answer: Ascendium’s wage garnishment likely prevented PSLF eligibility since loans must be in good standing for qualifying payments, though the servicer should have offered rehabilitation options earlier. The borrower lost potential PSLF credit for 10+ years of public service work due to default status during employment.Question:Dear Steve,I am a Federal Family Education Loan recipient. …
Quick Answer: The Department of Education has expanded the pandemic pause on interest and collections to include all defaulted Federal Family Education Loan (FFEL) Program loans. FFEL loans were previously excluded from COVID-19 relief because they are privately funded despite being government-backed, leaving millions of borrowers without the same protections as other federal student loans.This …
Quick Answer: FFEL loan holders can escape limited relief options by consolidating into Direct Loans, which unlocks income-driven repayment plans, Public Service Loan Forgiveness, and federal payment pauses. This consolidation process transfers loans from private servicers like Navient to federal programs with significantly more borrower protections.Question:Dear Steve,Navient holds my 6 figures of student loans, that …
Quick Answer: FFEL joint consolidation loans allowed married couples to combine their student debts into one loan prior to July 1, 2006, but created problems after divorce since spouses remain jointly liable. The Department of Education needs to clarify whether divorced borrowers can escape these loans through Direct Consolidation to access forgiveness programs.Not that long …
Quick Answer: FFEL spousal consolidation loans are not eligible for Public Service Loan Forgiveness (PSLF), but the borrower could consolidate into a Direct Consolidation Loan to qualify. Only Direct Loan program loans qualify for PSLF’s 120-payment forgiveness after October 2007, requiring the $32,000 FFEL balance to be reconsolidated first.“Dear Steve,I have been a government employee …
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