Comments on: Meet the Absolute Worst Federal Student Loan: FFEL Joint Consolidation

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Fri, 17 Nov 2023 15:01:48 +0000

In reply to claire serowinski. That sounds like a long and difficult journey. I'm happy to hear that things worked out for you in the end. Hopefully that will be the case for other joint consolidation borrowers in the near future. Thanks for sharing your story!

By: claire serowinski

claire serowinski — Fri, 17 Nov 2023 07:07:16 +0000

In reply to Michael P. Lux, Esq.. The group worked tirelessly to push the bill through and some members of the group were even in the Chambers when it passed. Thank you for bringing some light on to this subject.

By: claire serowinski

claire serowinski — Fri, 17 Nov 2023 07:02:50 +0000

In reply to Michael P. Lux, Esq..

no this is how the servicers classify us as co signors; even though both spouses hold equal stake in the joint consolidation loan. For decades, they would only speak to my husband on the phone, calling me a co signor. Somehow miraculously we’ve recently had all of our joint consolidation ffel student loan debt cancelled. We graduated college in 1991, borrowed 20,000, repaid 40,000 and our balance stood at 77,000. We defaulted during covid and our loans reverted back to Dept. Of Ed. FSA sent us notice in Sept. that we qualified either through paying for 2 decades or PSLF (firefighter husband). Nelnet sent us notice last week of our zero balance and it just came off of our credit report. We are still in disbelief, but Biden’s programs are working. Unfortunately, Dept. Of Ed. is dragging its feet with separating Joint Spousal Consolidation Loans and coming up with a process for it. They should just zero out all of those balances. I still don’t know how we obtained forgiveness with not having our loans separated first, but we took a chance when Biden offered FFEL loan holders some relief during the pandemic but only if they were defaulted. We were close to default so we just let it happen. I don’t recommend that, but we felt that we had no other choice…

By: Jane

Jane — Sat, 25 Mar 2023 15:46:19 +0000

Thanks, Michael. I am keeping my fingers crossed…but I often get the feeling that they–whoever “they” are–have little incentive to get anything done. I am skeptical–and who can blame me?–as my husband and I began borrowing for our “kids” in 2002…borrowed a total of about $50K for all three, in the form of Parent Plus loans, one of which is the Joint Consolidation. We had to borrow through the year 2011.
We’ve paid back about $92K, and now owe $130K. This system is rotten to the core. Mistakes in a few of our loans…no fixing, though–ever. I had one servicer say to me, “What you are saying IS consistent with what I am seeing–MAYBE. Hard to tell…” in regard to the consolidation loan that did not pay off one of the loans IN it. We were FORCED to sign a repayment agreement (I know how ridiculous that sounds) with one servicer when we had fallen into default on one loan. We were simply trying to stand our ground on a mistake they made–AES applied all of our payments to another AES loan with the same account #–which is how they did all of their loans. We knew they did this–yet they defaulted the loan–even while I was on the phone with them every single day, trying to work it out. THEN they demanded we agree to a “24.65%” collection cost added into the loan balance. You think I’m kidding? I am not. These guys are WORSE than the Mafia! Loan sharks WISH they had the carte blanche, anything goes rules the student lending industry has been awarded. NO one will help–even when I give them documents. I submitted documents to FSA and after weeks of waiting for ANY action, they “closed” the case, having not done one single thing. SO incompetent. Our issues are so big and twisted and numerous, I can’t even focus on ALL of them at any one time…I end up depressed and crying and anxious when I try to tackle the problems, so I break them down into little plans of attack: PSLF application; IDR plans; Direct Loan Consolidation; Reconsideration Request; letters to my senators/member of congress…yet so far, I have no results for my efforts. All anyone does is offer EMPTY lip service–at best. Pure hatred and hostility from the “other side” of the aisle. My husband will be 70 this year; I am not too far behind. We’ve been conned…lied to…cheated…robbed…extorted…you name it…for over 20 years.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Sat, 25 Mar 2023 14:55:58 +0000

In reply to Jane. Hi Jane, It looks like we may see some good news on this front. There seems to be some movement within the Department of Education on this issue of late, and the best guess is that we will see a separation application become available this spring.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Fri, 24 Mar 2023 13:58:39 +0000

In reply to Jane.

That is a great question Jane. On one hand, I know the Department of Education is quite overwhelmed now, but this legislation passed a while ago, and there hasn’t been an announcement. Many people are in situations similar to yours.

I’m going to do a bit of investigating this morning, and I’ll reach out to a few contacts to see if I can get an update.

By: Jane

Jane — Thu, 23 Mar 2023 22:54:16 +0000

In reply to Michael P. Lux, Esq..

WHEN we will be able to do this???? I need to consolidate my share of our joint/spousal consolidation as I am trying for PSLF. I’ve been working in a 501c3 for 12 years–though a few of those years I worked only part time. I have no idea what my “count” toward PSLF is (I have a pretty good idea, though) an NO ONE–not my servicer nor the EdDept is willing to help. This is urgent. The window for consolidating is closing again. I submitted my PSLF forms a year ago, however.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Thu, 22 Sep 2022 20:12:40 +0000

In reply to Julie Kearney. Julie, I hope your Facebook group has seen the news from yesterday, but if not, be sure to let them know that Congress just passed legislation to allow borrowers to separate joint consolidation loans.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Thu, 22 Sep 2022 20:11:49 +0000

In reply to Rich. Rich, you will soon have options in this situation. Congress just passed legislation to allow borrowers to separate joint consolidation loans.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Thu, 22 Sep 2022 20:11:05 +0000

In reply to Jenny. Jenny, I think this issue will be easier to deal with now that Congress passed legislation to allow borrowers to separate joint consolidation loans.