Comments on: How to Convert Private Student Loans into a Federal Student Loan

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Fri, 14 Jun 2024 13:34:29 +0000

In reply to Danny. Hi Danny, It looks like you have a somewhat tricky situation, but there may be a couple of great options available to you. Because you have Parent PLUS debt, you might wish to look into the double-consolidation loophole. Additionally, I've got some guidance for borrowers with Sloan servicing. You will probably want to take some action with that loan ahead of the one-time adjustment deadline.

By: Danny

Danny — Fri, 14 Jun 2024 01:20:41 +0000

currently have oustanding balance with one ppl + a seperate smaller amount with a fed direct loan , 1st , as of todays date what can I do with the ppl to gain any relief access to current forgiveness offers or just to convert over to a fed education loan , its seviced by sloan as of now , was opened in 2006

By: Kerry E Kimball

Kerry E Kimball — Tue, 16 Jan 2024 15:42:02 +0000

Many thanks Michael. This gives me a lot to work with.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Tue, 16 Jan 2024 14:11:05 +0000

In reply to Kerry E Kimball. Gotcha, your loan may be classified as an FFEL loan, which would need to be consolidated in order to be eligible for PSLF. I'd suggest reading this article about FFEL loans, consolidation and PSLF. Hopefully, it covers all the questions you have.

By: Kerry E Kimball

Kerry E Kimball — Mon, 15 Jan 2024 23:07:31 +0000

In reply to Kerry E Kimball. Thank you for the quick response. As a retired federal employee, I would pursue the PSLF program.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Mon, 15 Jan 2024 21:31:02 +0000

In reply to Kerry E Kimball. First the good news: the UNCNS designation means we are working with a federal loan. This means there is probably a path forward to forgiveness. However, before jumping into specifics, what forgiveness program were you planning on pursuing?

By: Kerry E Kimball

Kerry E Kimball — Sun, 14 Jan 2024 20:44:17 +0000

I have a UNCNS loan through AES. I was told by an AES rep that I had to convert this loan to a Federal Direct loan if I wanted to pursue loan forgiveness. Is that correct and, if so, how is that done?

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Fri, 25 Aug 2023 20:10:50 +0000

In reply to Kordai DeCoteau. I wish I had better news for you, but there really isn't a way to undo the consolidation process. When you refinanced with a private lender, the federal loans were paid in full, and a brand new loan was created.

By: Kordai DeCoteau

Kordai DeCoteau — Fri, 25 Aug 2023 20:05:28 +0000

I have FFELPS loans that were with AES and then I consolidated it (during chemotherapy) to a private loan (unknowingly) in January 2022. I never have not paid the loans except during residence when I was in forbearance. Is there any way to get them back to federal to get them paid off?

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Wed, 19 Oct 2022 13:53:36 +0000

In reply to Tammy. If you have a privately-held FFEL federal loan, which it sounds like you might, you can do a federal direct consolidation to convert the debt into a federal direct loan. However, this move may not be enough to qualify for the one-time forgiveness program.