Perkins Loans Mess..Who can I contact other than the loan company?

[renclan]

In college, with the advice of my advisor, I took out Federal Perkins loans. They explained that for every year of service teaching in a Title I school, 20 % of the loan would be cancelled. After completing five years, my debt would be eliminated. After graduating, I thought that I was in forbearance until my five years of teaching were up. However, I did not realize that I was getting behind in payments. Not once did I receive a phone call. I received something in the mail and realized what was happening. I called and spoke to the loan officer and explained the situation. They told me they could resolve the problem and consolidate my loans and that would take me out of the past due status. I told them about seeking to complete the Federal Perkins Loan forgiveness program. I was assured that after five years of teaching in a Title 1 school, I would be able to have that taken care of.

After a few months of completing my 5th year, I called back to find out what I needed to do to send in my Title I verification form and was told that I no longer qualified for the forgiveness program. I was speechless as they explained that since I had consolidated, it removed my eligibility. I did not understand the loan forgiveness process and took at face value the advice I was given during the many calls I made regarding my loans.I couldn’t fathom that through all of our conversations of me explaining that I was counting on doing the forgiveness program, nobody said a word.

I have tried many times to seek help regarding this, but haven't been able to figure out who to talk to. For those that will probably say I should have read the fine print, I realize that. My frustration is that I believe I was purposefully misled.  I feel like I have put in my time and earned the loan forgiveness, but through a technicality I have been screwed. 

Does anybody have any experience with this or know of someone I can contact to dispute this? If nothing else, I feel like the years before the consolidation should be credited. Thanks!

[SCF]

Unfortunately, you probably will not be able to get your Perkins loan benefits back.  As far as the years before you consolidated, it's possible that you would not have been eligible for the forgiveness because your loans were not in good standing.  Generally, you don't qualify for loan benefits while the loans are in default.

You can contact the Student Loan Ombudsman, or Consumer Financial Protection Bureau.  I'm sure they will take details of your complaint, and want to add it to the body of information that they've been gathering to try to improve how federal student loans are managed.  I wouldn't get your hopes up that they can somehow get the forgiveness benefit back for you.

Have your loans been on an income-driven plan like IBR or PAYE since you consolidated?  Those payments would qualify toward Public Service Loan Forgiveness as long as you were working full-time for your school.

[renclan]

I wasn't in default though and they assured me I could still do the loan forgiveness. Believe me, I'm not holding my breath. I just figured it was worth the effort to try. Thanks god the info! What kind of payments are needed for the public service forgiveness?

[SCF]

Are you sure you weren't in default?  It sounds like you were more than 270 days late, and then consolidated your loan in order to get them into good standing.  Consolidation is usually a solution that's offered for loans in default, because there are other options for loans that are simply past due less than 9 months.

Public Service Loan Forgiveness requires that you make 120 payments while on an income-driven payment plan (so IBR or PAYE).

[renclan]

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@SCF wrote:

Are you sure you weren't in default?  It sounds like you were more than 270 days late, and then consolidated your loan in order to get them into good standing.  Consolidation is usually a solution that's offered for loans in default, because there are other options for loans that are simply past due less than 9 months.

Public Service Loan Forgiveness requires that you make 120 payments while on an income-driven payment plan (so IBR or PAYE).

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They never said I was in default. The thing I received in the mail was a past due notice; granted it listed more than a few months past due. I honestly don't  recall the amount anymore. I know it wasn't  near that long. I wonder if there is some way I can get ahold of that paperwork so I could see for sure. 

My concern with the income driven payment is that it is based on joint income right? I file with my spouse for tax purposes, but we live seperately and therefore have seperate finances.

I appreciate your help and feedback!