I am currently still paying my student loans in these unfortunate COVID times because Navient says I have a consolidated loan. Will this affect my eligibility for any proposed future forgiveness whether it be by a new administration or as a result of the Navient lawsuits?
It sounds like you have an old consolidated FFEL Loan. These loans don't qualify for any programs under the Covid-19 assistance (https://thecollegeinvestor.com/33288/quarantine-lockdown-student-loans/).
Furthermore, chances are that future legislation will continue to not cover them. Depending on how much you have left on your loans, and how much time you have left, you might consider re-consolidating into a Direct Loan, which will open you up to the current Covid-19 pause, as well as new loan forgiveness options (like PSLF).
Thank you for your prompt response. How would I go about confirming that I have that type of consolidation loan? It's depressing to think that Navient will get their money from me no matter what.
You want to get your "MyAid" file at StudentAid.gov. This will break down exactly what loans you have, by loan type, date, etc.
Thanks. I was able to confirm that there are 2 FFELP loans. So even if I get a Direct Loan, Navient gets paid?
Well, remember, you owe the debt to the US Taxpayer. Navient is just a servicer. The technical way Navient (and all loan servicers get paid) is roughly $2 per loan per month. That's it. They don't get paid your interest or anything.
With that being said, you can re-consolidate your loans today. They'll become Direct Consolidate Loans. They'll be eligible for the current Covid-19 pause. They'll also become eligible for programs like PSLF.
However, based on your repayment plan, you could be on the road to loan forgiveness already (plans like IBR include loan forgiveness after 25 years). When you consolidate, you're taking out a new loan. Any past history goes away, so any payments you made prior no longer count.
There are trade-offs with both, and the choice is personal based on your situation, income, etc.
This is all great information. Thank you so much! I work for a non-profit, but I have been lax in getting PSLF. Would I be eligible for the potential 10,000/year forgiveness proposed by Joe Biden if I got a Direct Loan and initiated PSLF?
Oh man... that breaks my heart you're eligible for PSLF. Your FFEL loans don't qualify for PSLF, and you could have had your debt forgiven already (based on it being more than 10 years since PSLF existed)...
With that said, if you want to go for PSLF, you must consolidate. You need Direct Loans.
Also, if any forgiveness program does come to pass (it likely won't, but hey, we can hope), it also will likely only apply to Direct Loans.
You've been very helpful in narrowing down my options. I am left with getting a Direct Loan or knocking most of it out with my 403B. I have no dependents, and I can't help but think about the chance that I don't even live to retirement. Live for the moment type stuff. Thanks for everything!
Please don't pull your retirement assets. I've personally never seen that work well for anyone.