@Anonymous wrote:
I had these student loans from many years ago maybe like around 10 or 11 years ago give or take.... I had a couple of different kinds of loans...which some were consolidated about 8 or 9 years ago into Navient. And then I had one private one from the school itself that I finally was able to consolidate it into Navient as well.
About 4 years or so ago, I had entered into the IBR program of having a $0 monthly payment (I have never made any payments at all ever on these loans).
Then as of a couple of years ago after I got ALL the loans consolidated, (I was able to get it down to one loan)... I was able to still be eligible for the IBR payment of $0.
My question is.. I read somewhere a while back that they do loan forgiveness after so long of time after payments have been made in a row...Well since I am on a $0 plan, Will my loan be forgiven after so long? And if so, how many years?
Depends on what plan you are one for "forgiveness". PSLF? PAYE? Or REPAYE?
Sorry, I had to edit as my SO had to correct me. He failed to recertify for IBR for the $0 payments.
My SO was told 10 years of $0 payments, on IBR for standard repayment, the balance would be forgiven. He never got that far because he foolishly failed to recertify for the $0 IBR. He had FFEL loans and not direct loans, so there is not PAYE or REPAYE option, basically standard repayment with ICR/IBR certification. There is also PSLF, which he did not qualify for. Even if he did, each year he would have had to certify and make sure those payments counted for that program.
For either of us to do PAYE or REPAYE we would have to consolodate, but as I outline below, I have no desire for a new TL on my CRs, especially when my SO qualifies for $0 payments via ICR.
Maybe someone that has successfully lasted the 10 years without being convinced to consolidate or something else to reset the repayment length/term can chime in.
I believe you have to have been in a program to have the balance forgiven for any $0 payments to count, but I could be wrong. You would need to see what program you are in. 4
Why would you consolidate if you were already making $0 payments? I understand possibly for adding in the private loan, but by consolidating, you are creating a new account with a new repayment period. I believe they try to get people to do that so they have to continue to recertify in hopes one day they will be required to repay some of that loaned money back.
So by consolidating again, that could have reset whatever track you were on working towards the required number of payments for that repayment plan.
I see no benefit to consolidate unless a new plan required it or to reduce payments, lower interest, or for forgiveness of some sort, but with $0 payments, there is jo need really for amy of that, so I am curious what was the incentive?
IME, as I mentioned above, it just keeps resetting the terms of repayment to the new length of repayment and keeps you in their grips.
Some people say a consolidated loan is more convenient, but if there was no payment, there is no extra convenience?
A new TL on your credit is also just that, a new TL (likely with a new account scoring penalty) and lowers your AAoA. I am just curious more than anything how they swayed you to consolidate. Having less loans on your CRs doesnt make it any better, having a thick and full credit profile is a good thing!
Good luck!
