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Student Loans => Student Loan Forgiveness => : chrisuofa 23, 2021, 01:03:47

: PSLF and spousal consolidation loan
: chrisuofa 23, 2021, 01:03:47
Hello.  I attempted to apply for a consolidation of my existing FFELP Consolidation Loans into a new Direct Consolidation Loan for the purpose of using the PSLF.  Per this link ( on the FedLoan Servicing website, I should be able to do that.  I also found the following from 34 CFR Section 682.201(e)(5)(i): "A FFEL borrower may consolidate his or her loans including a FFE Consolidation Loan) into the Federal Direct Consolidation Loan Program for the purpose of using - (i) The Public Service Loan Forgiveness Program..."

My consolidation request was denied because the "type" of FFELP loan is not eligible.  They said that Spousal Consolidation FFELP loans cannot be consolidated into a new Direct Consolidation Loan.  So I'm asking if anyone knows where is the authority for that?

I did see in this article ( the following:
"One type of FFEL student loan is a Joint or Spousal consolidation loan -- a now-defunct program that allowed two spouses to combine their individual federal student loan balances into a single loan, with both spouses jointly responsible for its repayment. The program was discontinued, but some borrowers -- including those who have since divorced -- are stuck with these types of loans. Joint Spousal FFEL Consolidation loans cannot be re-consolidated into a federal Direct consolidation loan under current federal policy, and therefore cannot qualify for PSLF. It may take an act of Congress to address this problem."

: Re: PSLF and spousal consolidation loan
: TheCollegeInvestor 24, 2021, 11:26:33
It's in the regulations for Direct Loans that you can only have one borrower (hence no joint loans). I'll have to look up the regulations, but it's been a problem for over a decade and it can only be fixed by Congress. However, there are sadly so few spousal consolidation loans  ( there isn't a lot of pressure to do this.
: Re: PSLF and spousal consolidation loan
: chrisuofa 02, 2021, 09:10:38
I don't see it but if you do please let me know. I have found several articles that state this is just a Department of Education policy.