It’s hard to say, because we don’t know what they will end up doing with the one-time forgiveness.

However, federal direct consolidation might be a good idea if it helps you take advantage of the IDR Count update scheduled for next year.

Should we stay with private lender AMERICAN EDUCATIONAL SERVICES or apply federal consolidation?

The deadline Dan is referencing is the limited waiver on PSLF. If you have worked in a public service position, it is important not to miss the October 31, 2022, deadline.

As for the best approach, I’d lean towards consolidating now, because it may help you qualify for forgiveness and it will definitely help you benefit from the last few months of the payment and interest freeze. I’m also seeing reporting that FFEL loans will be covered in some manner by the forgiveness. I’ll be posting a more detailed breakdown on FFEL strategy in the next day or two.

Update 9/8/22: Here are the latest details on how they are handling FFEL loans.

Like Dan’s wife I also have an FFELP loan. Mine is serviced by Navient, and shows up on Studentaid.gov. I realize we are awaiting more details, but I’ve been given conflicting advice. On one hand I’ve been told to sit tight, but I’ve also been told to consolidate into a direct loan. I applied for the direct loan yesterday through studentaid.gov. Do you know anything about the deadline Dan is referring to? I’m trying to decide if I should cancel my direct loan application request. What are your thoughts?

We are still waiting on the details on FFEL forgiveness. Is possible that they will forgive these loans as well. It is also possible that she will be able to consolidate into a direct loan to get the balance forgiven.

Update 9/8/22: Here are the latest details on how they are handling FFEL loans.

The Department of Education hasn’t released the full details on loan eligibility, but right now, it is looking like federally-held Parent PLUS loans will be included.