If I have a spousal consolidation, how does PSLF work?

For those who had spousal consolidation loans they often cause a lot of confusion. So much confusion that the law no longer permits you to be able to perform these kind of consolidation loans.

First to decide if you can have forgiveness, you must decide if your loans qualify. As previously discussed, in order for your consolidation loan to qualify it must be a Direct Loan. Which means that FFELP loans do not. However unlike other situations where you can consolidate an FFELP loan to become a Direct Loan, since they are no longer giving out spousal consolidation loans, if you have a FFELP spousal consolidation, it is not eligible for PSLF and cannot be converted.

If you do have the appropriate type of loan, then it depends on the employment situation of the borrowers. If both borrower’s have qualifying employment then the entire loan balance can be forgiven after the criteria is met. However if only of the two borrowers on the loan have qualifying employment, only the remaining balance of the joint consolidation loan that can be attributed to the loan originally received by that borrower can be forgiven while the original portion of their spouse’s loan remains intact.