Consolidating ffelp loans into direct loans
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I understand that they are not eligible for loan forgiveness. ,000) They were consolidated in 2003 for fixed 4.75% interest rate.
for the past 13 years I have worked at public state universities. Would their be any benefit to trying to direct consolidate those consolidations and try for loan forgiveness under the public service program or am I better off staying with my current %, etc.
The one other concern to keep in mind with this option is to be careful about what loans get consolidated.
If Jenny had any federal direct loans, she might want to keep them separate from her FFEL loans.
This route would be far more tempting if Jenny had a larger student loan balance.
However, it should be noted that if she does go through federal direct consolidation, her interest rate will stay the same.
Income driven payments are no longer an option and loan forgiveness is impossible.
However, if Jenny is certain she will be paying the debt off in full, and the only question is how much she will spend on interest, this route could save a bunch of money.
Opting with a private lender could help lower Jenny’s interest rate and as a result, help her pay off the loan faster.
The risk is that once the loan becomes a private loan, there is no going back.
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