Graduated college 12/16, Began working as SPED teacher in low income school and am still there ( in my 3rd consecutive yr)
Currently - Direct Consolidated Loan 240 payments, level payments. Current Balance ~$24,300
Direct loans with My Great Lakes - did a Direct loan consolidation early 2017. When the consolidation was said and done, it was a 20 yr loan. I was confused, thinking it was a 10 year (120 payments) so called MGL, where I was told all consolidated direct loans were 20 yr term. I don't even recall an option for 10 or 20 yrs when filling out the documents for the consolidation.
I have emailed MGL annually to verify i'm on the right track for the TLF, with direct consolidation loan. Each time they have replied back yes. Not once was the discussion/suggestion/warning of income based payment being needed brought up. :(
I have since discovered that, it seems, that not only the direct loan must be a 10 year plan and also paid with income driven payment plan. Is this correct? I guess I'm out of luck for the time I've already worked / paid thus far counting toward any loan forgiveness. :'(
If so, what steps do I need to take to get on the right track?
First: Apply for Income Based repayment plan
Second: Apply for another direct reconsolidating loan for 10 yr? (which i'm not sure where to turn with MGL saying they only do 20yr )
I want to make sure I do the right order of things so I don't shoot myself in the wallet again....
Thanks for any help!
It sounds like you're asking for Teacher Loan Forgiveness (TLF), but really wanting Public Service Loan Forgiveness (PSLF) - two different programs.
Based on what you wrote here, it sounds like you're on track for TLF - you're a special ed teacher at a title one school. After 5 years, that can qualify for you $17,500 in forgiveness.
PSLF is 10 years, any public service job. But it does require you to be on an income-driven plan.
Read this: https://thecollegeinvestor.com/19290/student-loan-forgiveness-for-teachers/
You can't go for both at the same time, but you can sequentially.
At this point, you need to to do some math. Should you stay another 2 years and get your $17,500 forgiven and then deal with the remaining balance. Or do you ignore the last 3 years and go change repayment plans to go for PSLF?
You also don't need to re-consolidate. You just change your repayment plan and certify your employment.
Read this: https://thecollegeinvestor.com/22857/public-service-loan-forgiveness/
Thank you for your reply!
You are correct, I have the acronyms mixed up.
I had hoped to be on target for the loan forgiveness after 5 years.
So the Teacher Loan Forgiveness program doesn't require a 10yr term direct consolidated loan or specific repayment plans?
No, teacher loan forgiveness doesn't require direct loans or a certain repayment plan. In fact, Teacher Loan Forgiveness was started before direct student loans even existed.
;D Great news! Thank you so much!