I have been working in qualifying public service for 12 years and paying my loan on an income based reduction plan for five years. However, I have now been told I don't have the right kind of federal loan since it is from 1997 and that I need to re-consolidate and start the ten years for public service loan forgiveness time over. Is this correct?
Most likely yes. If you have a loan that old, it's likely an FFEL loan. Only Direct Loans qualify for PSLF.
PSLF has three requirements:
- Correct Loan Type
- Correct Repayment Plan
- Qualifying Employment
You can re-consolidate into a Direct Loan, but then your 120 payment clock starts at that point.