So what loans are eligible for PSLF?

Today we will discuss what loans are eligible for the PSLF plan.  If you are looking for an exciting material today is not for you as this is as dry as it gets.  We will do “just the facts” for if you are interested in PSLF this is important stuff.  Any clarifications you know how to get ahold of me!

In order for your loans to qualify for PSLF they must meet certain criteria.  First the payments must be Direct Loans.  This means FFEL Program, Perkins or private loans do not qualify.  However you may be able to include these by consolidating your eligible loans.

Private loans do not qualify for consolidation so this will probably not benefit you.  However whenever you consolidate, it forms a Direct Loan, which is eligible.  Be careful to only consolidate ineligible loans as when you consolidate this forms a new loan and pays off your old loan.  If you had made previous qualifying payments on these old loans, they will reset back to zero.

Defaulted loans are not eligible for PSLF.  These loans must either be consolidated or rehabilitated before they can be considered.  In addition, spousal consolidation Direct Loans are eligible while Spousal Consolidation FFELP loans are not and cannot be converted to Direct.  This is because spousal consolidations are no longer available.

PLUS loans are eligible for PSLF however a Parent PLUS loan must be consolidated before it can be placed on an Income Driven plan and will only qualify for the Income Contingent Repayment plan.