However, FFEL Program loans are not eligible for Public Service Loan Forgiveness or the best income-driven repayment plans. It will effectively convert your FFEL Program loans into Direct Loans.
For example, if you were already on an income-driven repayment plan and consolidate your loans, then you will lose the any credit you had already earned toward forgiveness.
Lastly, understand that some of the loans that we called out for consolidation are those from another federal student loan program called the Federal Perkins Loan Program.
Those loans have their own cancellation benefits that are based on your job.
If you borrowed before July of 2010, you may need to consolidate your loans in order to qualify for certain student loan repayment benefits, such as Public Service Loan Forgiveness and some income-driven repayment plans.
If you’re interested in the best student loan repayment benefits, you’ll want to have Direct Loans.
If you borrowed any federal student loans before July 2010, there’s a good chance that some or all of your federal student loans are not Direct Loans.But that doesn’t mean you can’t qualify for the best repayment benefits—you can. If you consolidate, as a student borrower, here are some of the repayment benefits you could access: by the Department of Education.Since July 2010, almost all federal student loans are made under this program—in full, called the William D. Though the Direct Loan Program existed long before 2010, there was another bigger federal student loan program that most students relied on to finance their education: the Federal Family Education Loan (FFEL) Program.Under the FFEL Program, loans were made by banks and ultimately guaranteed by the taxpayer in case you didn’t make your payments. Loans from both of these programs are FEDERAL student loans.The main way the programs differ is in who made you the loan in the first place.Most of the benefits in the Direct Loan Program are available in the FFEL Program.