Consolidating loans with your spouse

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Direct consolidation loans are now the only type of federal student consolidation loan.Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan. We’ve got you covered with our Student Loan Smarts blog series.

Consolidating allows you to merge multiple eligible loans into a single loan.Before you consolidate, consider the following pros and cons: Note: Just remember, you must continue making payments after submitting your application until you receive notice from your servicer that underlying loans have been paid off.You have the option to select the servicer of your choice (of which, Nelnet is an option) After your new Direct Consolidation Loan is complete, you may still add more eligible loans to your existing consolidation.“Dear Steve, I have been a government employee and/or public servant since 1991. In or around 2002, I consolidated my law school student loans with my then husband into both a FFEL subsidized and unsubsidized loan. As fate would have it, we divorced in 2012 and I was stuck with the balance of the consolidated loan. Because I am a government employee, I applied for the loan forgiveness program, but I was denied because of the consolidation.Do you have any suggestions as to how I can make my loans eligible?For example, under the Public Service Loan Forgiveness Program (PSLFP), your Direct Loan balance may be eligible for forgiveness after 120 payments if you’ve worked in the public sector that entire time.

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