Government loan consolidation program

Borrowers who have loans from the FFEL or Federal Perkins Loan programs will also have this waiver applied automatically, but only after they have consolidated and submitted a PSLF form, and all paperwork has been processed. Simplify what it means for a payment to qualify for PSLF.

In some instances, borrowers missed out on credit toward PSLF because their payments were off by a penny or two or late by only a few days. The Department will automatically adjust PSLF payment counts for payments made on or before October 31, for borrowers affected by this issue who have already certified some employment for PSLF. Borrowers who have not yet applied for PSLF forgiveness or certified employment but do so by October 31, will benefit from these temporary rules as well.

Eliminate barriers for military service members to receive PSLF. This change addresses one major challenge service members face in accessing PSLF. Service members on active duty can qualify for student loan deferments and forbearances that help them through periods in which service inhibits their ability to make payments.

But too often, members of the military find out that those same deferments or forbearances granted while they served our country did not count toward PSLF. This change ensures that members of the military will not need to focus on their student loans while serving our country. Federal Student Aid will develop and implement a process to address periods of student loan deferments and forbearance for active-duty service members and will update affected borrowers to let them know what they need to do to take advantage of this change.

Automatically help service members and other federal employees access PSLF. Military service members and other federal employees devote themselves to serving the United States, and we should make it as easy as possible for them to get PSLF. Next year, the Department will begin automatically giving federal employees credit for PSLF by matching Department of Education data with information held by other federal agencies about service members and the federal workforce.

To date, approximately , federal employees and 17, service members have certified some employment toward PSLF. These matches will help the Department identify others who may also be eligible but cannot benefit automatically, like those with FFEL loans. Borrowers who believe there have been errors in processing their PSLF application after the Department first conducts the internal and external reviews described above will be able to use an interim reconsideration process to receive a second individual review next year.

A permanent reconsideration process is under consideration in the negotiated rulemaking process. To further strengthen oversight of PSLF, the Department will improve its reporting on PSLF, including information on timelines for processing applications and results of servicer audits.

The Department wants borrowers to know about PSLF and help those who may be close to forgiveness take the steps they need to get relief.

A letter of medical necessity could trigger an interest-free FSA loan to pay for dental care, flooring, HVAC equipment, surgery, and a host of other eligible health-related expenses that insurance does not cover. Take these steps to set up an interest-free loan through your employer and retire future debts before they hit your family balance sheet. The government does not sponsor consolidation loans for medical debts. However, several federal agencies administer programs that help families lower health-related expenses.

The Department of Education issues the only government-approved student debt consolidation loans. A Direct Consolidation Loan allows you to combine multiple federal education loans into one contract at no cost to you. It should take about thirty minutes to complete the form. Be prepared with personal and financial information to speed the process. Likewise, government debt relief programs are rarely legitimate because no federal agency funds or sponsors efforts to assist consumers with overwhelming obligations.

However, using just a little poetic license unearths a bevy of benefits that reduce future costs. Depending on the type of loan the interest rate might also be less. The United States typically offers the most robust debt consolidation services, and most programs there are designed for student loans, which is to say loans incurred for university education.

Sometimes debt associated with home mortgages, car payments, and even credit card bills can be consolidated, but not always. A lot depends on jurisdiction and local laws. When a person signs up for this type of loan, a government agency or consolidation company pays off the debt in full to all of the collectors. In most cases these sorts of terms and conditions are agreed to by both parties at the outset. People who have their debts under control are less likely to go bankrupt or become dependent on government aid, and in many cases will actually be able to spend more as a result of their reduced debt load.

Over time this can improve the economic conditions of entire regions and localities. We are not responsible for the content or availability of linked sites. Most federal loans are eligible for Direct Consolidation, including Direct, Stafford, Perkins loans and more.

Additionally, a government debt consolidation plan can lower your monthly student loan payments by increasing the amount of time you have to pay back the loan and giving you access to other repayment options.

If your original student loans have variable interest rates, government debt consolidation programs can convert your debt to a fixed interest rate, providing more predictability and possibly a lower monthly payment.

One of the drawbacks of government debt consolidation programs is that if your previous loans had benefits like rebates, interest rate discounts or forgiveness, you might lose those benefits after consolidating.