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DoE Loans Transferred To Avoid 120 Consecutive Payments?

Established Contributor

DoE Loans Transferred To Avoid 120 Consecutive Payments?

Isn't the "120 consecutive payments == loan balance forgiveness" in effect now? Although I've heard of this loan forgiveness act or law, I've never really verified that it was real. Anyway, I was just looking at my new loans accounts at MOHELA since my loans have transferred to another servicer yet again. Well, last month my loans were paid well into the future; they may have even had a due date nearly a year in the future. Now that MOHELA is now servicing the accounts, they list no payments and also do not list any future due date. Payments start this month (auto drawn on the 7th actually.) This just got me thinking - now that the DoE loans are at a new place, i'll basically be starting at payment zero. I will be starting all over again on the 120 days. Anyone else think this is true?

Message 1 of 3
Valued Contributor

Re: DoE Loans Transferred To Avoid 120 Consecutive Payments?

There are a number of forgiveness programs out there, along with some proposed changes/additions.


The 120 payment forgiveness is for people employed in a public service profession (nurse, police officer, non-profit agency, etc.).  You can find details on that here:


Only loans received through Direct Loans are eligible, but you can consolidate your FFEL and Perkins loans to make them eligible, all the details are at the link.  Transferring servicers wouldn't reset the clock, you just have to document that on the paperwork that you fill out when you request the forgiveness.


There's also a program that forgives your remaining balance after 25 years of payments, but since most student loans are on a 10 or 15 year timeline, this is mostly meant for people with high loan burdens and a low payment through an income-based repayment plan.


I think one or more of the bills floating around had proposed a forgiveness for anyone after 10 years, and public service after 5, but I don't think any of those bills have had any serious consideration from Congress.

Message 2 of 3
Established Contributor

Re: DoE Loans Transferred To Avoid 120 Consecutive Payments?

Ah, understood. I think I was more thinking the 25 year loan forgiveness. It does not matter to me as I plan on paying these loans back, always have. (even though I hated the graduate program and quit half way through only to have doubled my SL debt.)  You did answer the question of "do previous payments still count."  Thanks.

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