Having two loans after consolidation in a subsidized and unsubsidized is the normal process. As long as they are direct consolidation loans, you are fine for the one-time IDR count adjustment.

Hi Sarah,

That is another tricky question. Typically, it is a mistake to combine FFEL with direct loans because you would lose all of your progress towards PSLF. With the planned IDR update, this move is probably safe until December 31, 2023.

That said, this is a conversation to have with your loan servicer too. They can pull up your account to verify that consolidation won’t hurt your eligibility for any repayment plans or forgiveness options. (For example, if your FFEL loan was a Parent PLUS FFEL loan, it would be a bad idea to combine them)

Hi Michael, thanks for the quick response. I have one additional thing that I think I need clarified.

When I consolidate my ffel loan into a direct loan should I consolidate all of my loans together? Meaning I would consolidate the commercial ffel and my current Mohela direct loans (8 in total) all into one direct loan?

Thanks again for the help!

Hi Sarah,

I can see why this is so frustrating for you. I also appreciate you asking this question, as I could make the article a little bit more clear.

To help you make sense of things, I think a brief history lesson is necessary. FFEL loans are not eligible for PSLF. Consolidation can fix this eligibility issue, but the standard (or permanent) rule is that progress restarts. A temporary program called teh limited waiver fixed this issue, but the limited wiaver has also expired. A new temporary program, called the one-time account adjustment is another opportunity for FFEL borrowers to consolidate without losing progress.

As always, its a good idea to talk through things with your servicer to make sure that the rules as you understand them apply to your loans, but hopefully this brief history lesson will help you make sense of some of the inconsistent information you have received.

I have a question about consolidation. I submitted my PSLF back in October of 2022. At that time I didn’t realized not all my loans were direct. I have a commercial Ffel loan with over 120 payments from undergrad and I have a Direct loan through Mohela. (The entire time I have worked for an eligible employer.)
My direct loans are through Mohela, I have 8 different direct loans with different eligible counts. I am planning on consolidating my commercial ffel loan into a direct loan. Then applying for IDR in hopes of loan forgiveness. My question is, should I consolidate all of my loans together? Meaning consolidating my commercial Ffel and the 8 mohela direct loans? The whole process is so confusing and I feel like I keep getting different advice depending on who I talk with.

Congrats on getting your loans forgiven Brian!

Your understanding regarding the refunds is correct. Extra payments made after consolidation would have been eligible, but FFEL payments made before consolidation are not eligible for a refund.

I’m not sure what you mean by “changed the type of consolidation in 2009 due to PSLF”.

Let’s back up a second, dating back to 2001 when you started repayment, have you been in a PSLF job that entire time?

Also, before we spend too much time on this issue, be sure to check out the Limited Waiver on PSLF. The deadline to apply is less than two weeks away, and from the sound of your question, it could be a critical deadline for you.