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GULP - New to all of this – but have researched
October 6, 2015
1:53 pm
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October 6, 2015
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Hello Everyone,
Well, I am in pretty deep folks. I owe 146,000 in: Federal unsubsidized, subsidized, a few direct loans, and one small Perkins loan from when I had zero income.

(I also owe AES 16500 – but that is private so not included here -groan)

I graduated in September and decided to jump right in. My AGI currently is 42000. I applied through stuentloans.gov and requested PAYE as my option. I also expressed interest in PSLF because I work for the government.
My application was sent over to FedLoan Servicing and they were pretty quick about it. Navient and my University sent over the info quickly…apparently.

1. I received a letter confirming that I did indeed want to consolidate.

2. I received a letter showing what my payments would be and that they could not calculate the income driven ones at that time.

This is when I called customer service – several time – because I got different answers. I was told that they could not apply the income driven models UNTIL the consolidation was complete, but that they could give me an idea of what my payments would be like under IBR and PAYE which they said I qualify for – no loans before 2008 and something about after 2011. This seems strange – I am agreeing to consolidate something that I do not have an actual payment in writing on?

3. I then asked about all the loans I had and how some of them looked they didn’t qualify.

I was told that they would be converting ALL my loans to direct loans, even the 1 Perkins loan, and that they would qualify that way. This sounds fishy…

4. Then they told me I would have one payment but the loans would be split into unsubsidized and subsidized…but if they are all going Direct is this possible?

5. They told me that it sounded like I would qualify for PSLF and to get my paperwork in ASAP on it.

When I spoke to them later they told me that the paperwork might be denied at first because my loans had not finished consolidating.

6. I asked about when the process would be done and they said I would probably make my first payment in November! This is fine, I want to get this done.

Does any of this sounds right, anything I should be checking into, any thoughts really…I am confused and of course concerned.
THANKS!!!

October 6, 2015
6:03 pm
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This all sounds similar to my experience when I went through he consolidation process. Their estimates as far as how long it takes or exactly what your payments will be might be off, but the important thing at this point is to make sure the process keeps moving. You are taking the right steps.

As for your concern about the one Perkins loan, what you are being told is correct. It seems strange, but certain loans that otherwise wouldn’t qualify, can become eligible if they are part of a federal direct consolidation loan.

The one payment two loan information is also accurate. The two loans will go with one lender, so there will be one payment, but they keep the subsidized and unsubsidized loans separate. This is exactly what they did with my loans.

As for the PSLF, what they are telling you is right, I put a link in your introduction page post, and you definitely want to check that out. You have a lot to gain from the program, so you will want to be certain to do everything by the book. If you start making payments in November, I’d suggest submitting the paperwork in January. They will then “certify” your previous payments. Then as long as your employment stays the same, I’d recommend submitting the paperwork each January. The goal with PSLF is getting those 120 certified payments.

October 7, 2015
7:13 pm
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The Sherpa said

This all sounds similar to my experience when I went through he consolidation process. Their estimates as far as how long it takes or exactly what your payments will be might be off, but the important thing at this point is to make sure the process keeps moving. You are taking the right steps.

As for your concern about the one Perkins loan, what you are being told is correct. It seems strange, but certain loans that otherwise wouldn’t qualify, can become eligible if they are part of a federal direct consolidation loan.

The one payment two loan information is also accurate. The two loans will go with one lender, so there will be one payment, but they keep the subsidized and unsubsidized loans separate. This is exactly what they did with my loans.

As for the PSLF, what they are telling you is right, I put a link in your introduction page post, and you definitely want to check that out. You have a lot to gain from the program, so you will want to be certain to do everything by the book. If you start making payments in November, I’d suggest submitting the paperwork in January. They will then “certify” your previous payments. Then as long as your employment stays the same, I’d recommend submitting the paperwork each January. The goal with PSLF is getting those 120 certified payments.

Thank you for all your help! This really does make me feel better. They suggested at fedloanservicing that I go ahead and fill out the PSLF and turn it in to them so that my first payment will “count.” I sent it in, by accident 4 times lol, and they said they received it and that it looked fine. I will of course keep everyone updated – they are saying that their fiscal year ends on the 13th of this month so not a great deal is being done right now on my loans, but after that, it should be pretty quick. The sooner I can get this behind me, and start paying something I can afford – the better!

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