Really need help with some loan consolidation questions:

Paying for College
1

<p>I borrowed federal loans for undergrad/graduate school and am currently in my grace period. My first payments will begin in June.</p>

<p>I would like to consolidate, as well as take advantage of the "[Public</a> Service Loan Forgiveness Program](<a href="http://www.finaid.org/loans/publicservice.phtml]Public"&gt;http://www.finaid.org/loans/publicservice.phtml)" since I am a government employee (10-years with a local government agency). Where I’m having trouble, though, is that the PSLF Program is only available for those with [Direct</a> Consolidation Loans](<a href=“https://loanconsolidation.ed.gov/AppEntry/apply-online/appindex.jsp]Direct”>https://loanconsolidation.ed.gov/AppEntry/apply-online/appindex.jsp), and all my loans are Stafford loans. Below are the loan types I have and total amounts of each:</p>

<p>Federal Stafford Loans - Subsidized: $24,825
Federal Stafford Loans - Unsubsidized: $42,121</p>

<p>Can I get a Direct Consolidation Loan with these or am I just totally screwed? And if I can’t take advantage of the Direct Consolidation program, what program should I use instead?</p>

<p>Any and all advice is most appreciated!</p>

2

<p>Yes, Direct and FFEL loans are just other names for Stafford loans (direct means it came directly from the college, while FFEL means you got to choose the Stafford lender).</p>

<p>From your link, click on “Am I Eligible?” and this is what it says:</p>

<p>"To qualify for a Direct Consolidation Loan, borrowers must have at least one Direct Loan or Federal Family Education Loan (FFEL) that is in grace, repayment, deferment or default status. Loans that are in an in-school status cannot be included in a Direct Consolidation Loan. "</p>

3

<p>Thank you! That is wonderful news! I was thinking that these were different types of loans entirely. I guess I will go ahead and start my application, then try to get into the Public Service Loan Forgiveness Program.</p>