I have been and still am very financially illiterate and irresponsible, but I am trying to change that. I have my first real job - a government job. So, I have the opportunity to qualify for a PSLF. My Federal income taxes are taken to pay my federal student loans (does that count as garnishment?).
Here's where I need help. My student loans defaulted, and now they're so old that they've been removed from my credit report - in that they no longer negatively effect my score, though the damage has been done. I need to pay these off. They are both unsub/sub'd FFEL Stafford loans, so they don't qualify for the PSLF unless I consolidate under a Direct Loan. Since the credit report consequences are already removed, would consolidation be a better option so that I can try to take advantage of the PSLF before it dies? Should I make three consecutive, voluntary, on-time, full monthly payments on my defaulted loan before I consolidate it, so that I can ask to repay the new Direct Consolidation Loan under any eligible repayment plan?
Still waiting on studentloans.gov to verify my information, but I entered my info into the repayment estimator guessing that my interest rate is 4.8%. Also, I can't view what the PSLF payments would be because the loans are still FFEL and not direct (eligible). If I do a standard plan I will pay a total of $46,124 over 120 months. If I do an IBR I will pay a total of $26,291 over 120 months and have the rest forgiven if I can get the PSLF. IF I can qualify for IBR - my calculated payment amount under IBR must be less than what you would pay under the Standard Repayment Plan with a 10-year repayment period - check; direct Loan and FFEL Program loans, not in default, are eligible except - not checked unless I consolidate.
Is there anymore information you guys need to help me? I think I should contact my loan servicer, make the three months of payments, then consolidate, then apply for the PSLF. Does that make sense? What are your thoughts? PSLF please don't die yet.
Edit: should i go ahead and apply for the PSLF seeing as it seems to take months before hearing back to determine if I even qualify
Submitted April 11, 2018 at 03:06PM by shiftforwardslash https://ift.tt/2ILNRth
