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It was a mistake to use Federal consolidation, is there any recourse?
July 24, 2019
10:19 pm
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July 24, 2019
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At first, Federal consolidation seemed like it made sense. The idea of simplifying my many loan providers and payments was appealing. I thought I did my homework, and made sure to keep my PERKINS loan out of the mix. Somehow, I missed the fact the consolidation would reset the qualifying payments I’d made under IBR to the 20 year loan forgiveness date to a big, fat 0. I lost 10 years worth of payments. Ouch.

a) is there any recourse, or was consolidation and very big and very permanent mistake?

b) any activism you’d suggest that could help others in the future? Worth it to write to my Senator and let him know what happened and make a plea for a nice, helpful warning sign to be added to the consolidation process?

Thank you!

July 26, 2019
4:48 pm
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May 3, 2014
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I’m not aware of any recourse to fix this issue. It is definitely a major issue.

I’d absolutely suggest reaching out to your elected representatives to discuss this issue. Your loan servicers should have warned you about this issue, and had they done so, you obviously would not have done it. Borrowers should either get better loan servicing or a less complicated system.

Occasionally, the federal government will pass a law to “fix” or “patch” certain student loan issues. The most recent one dealt with Public Service Loan Forgiveness applicants who were on the wrong repayment plan. I’d keep a close eye out to see if any new law is passed that will help your situation.

July 27, 2019
12:41 am
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Thanks Michael!

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