Student Loan Forgiveness After Consolidation
Under the new regulations, borrowers won’t lose all of their PSLF credit by consolidating existing Direct loans. “If you consolidate your loans, the qualifying payments made on the Direct Loans included in your consolidation loan will be credited to your consolidation loan using a weighted average of those payments,” says the Education Department’s
“If you have a single month in your payment history that do not count as a qualifying payment because you were in a deferment or forbearance status other than those that are considered an eligible payment equivalent, you can buyback that month to make it a qualifying payment,” says the updated Education Department guidance.
First, the new regulations simplify the definition of qualifying employment to be an average of 30 hours per week or more. Previously, PSLF required that borrowers be considered “full time” by their employer, in addition to the 30 hour-per-week mandate.
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