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How to Consolidate, Get Student Loan Forgiveness (& Coronavirus Relief)

The Federal Student Loan Forgiveness Guide (up to date as of March 2020)

Learn how one can take care of your federal student loans inside this easy-to-read information. Get step-by-step directions on how one can consolidate your federal student loans, preserve the bottom month-to-month cost, and get loan forgiveness within the shortest timeframe. For Coronavirus-related student loan reduction, check with “Chapter Two”, and right here’s an infographic that highlights a number of the information:

How COVID-19 Effects Student Loan Forgiveness

how COVID-19 effects student loan forgiveness

Prefer to not must take care of your student loans by yourself? Schedule a Free Consultation with a student loan reduction counselor at Golden Financial Services, by emailing [email protected] Not all states qualify, and candidates should owe above $15,000 in federal student loans to be thought of for this system. Programs are additionally obtainable to assist with credit playing cards, medical payments, assortment accounts, and virtually all unsecured debt at (866) 376-9846.

Table of Contents 


Start by Watching This Short Video

Coronavirus Student Loan Relief

President Trump has permitted student loan reduction because of the Coronavirus that features the next:

  • No federal student loan cost up till September 30, 2020
  • No curiosity in your federal student loan funds up till September 30, 2020
  • No garnishment of wages, Social Security, and tax refunds for student loan debt assortment up till September 30, 2020
  • No motion is required to get the curiosity waived for the subsequent six months, as this profit is getting robotically utilized to your student loans. However, you will have to contact your student loan servicer to request having your subsequent six month-to-month funds waived, together with any present past-due quantity, as this motion is just not robotically utilized however all students are eligible.
  • Source: Jack Friedman, Forbes, 03/30/2020

For info on Coronavirus-related credit card debt reduction–go to this web page subsequent.

Before leaping into the student loan reduction information under, please overview the next abstract and important factors to pay attention to:

  • Check what month-to-month cost you possibly can be eligible for earlier than beginning the consolidation course of by utilizing this federal student loan consolidation Repayment Estimator Tool.
  • Don’t overlook to recertify your income-driven compensation plan each single yr.
  • Make positive you know the way many funds you’ll must make earlier than turning into eligible for student loan forgiveness (i.e., 10-25 years)

student loan forgiveness

  • Submit your Public Service Loan Forgiveness (PSLF) Employment Certification kind yearly. (This step is just for shoppers which have a public service job, like law enforcement officials and lecturers) – If you’re making use of for the PSLF program, skim down on this web page to the place it says: “Public Service Loan Forgiveness Program (Aka: Teacher loan forgiveness & PSLF.”
  • If delinquent on funds: request 90-days forbearance instantly to offer you enough time to get the student loan reduction course of accomplished and keep away from getting your wages garnished.
  • If late on funds and need to restore your credit (getting the default marks eliminated) you’ll want first to finish a loan rehabilitation program.
  • If your wages are getting garnished already, contact the gathering company and request a loan rehabilitation program (identical as above, on the lowest potential month-to-month cost). Loan Rehabilitation will cease the garnishment and restore your federal choices. Loan rehabilitation is simple to get began on; simply name the gathering company and request a loan rehabilitation plan.


How to Get Public Service Loan Forgiveness (PSLF)

How to get student loan forgiveness (learn how inside Infographic)

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Here are the 16 Steps To Consolidate, Get the Lowest Payment & Get Student Loan Forgiveness

Before you may develop into eligible for student loan forgiveness, you want first to consolidate your federal student loans and get on an income-driven compensation plan that gives loan forgiveness.

Step 1: Get FSA-id to consolidate federal student loans

You will want your Federal Student Aid Username and Password (FSA-id) to consolidate your federal student loans. Visit to get it. (Click on the place it says “Create an FSA-id” and observe the directions)

READ:   Leaving NZ With Unpaid Debt

Step 2: (non-obligatory) Get a quote on what your new consolidated cost might be

Log in to the Student Loan Consolidation Repayment Plan Estimator to get a quote on what your new cost might be after consolidating. Get an thought of what your choices are earlier than beginning the consolidation course of.

Step 3: Start consolidation… these are step-by-step directions on how one can consolidate.

Consolidate your federal student loans at StudentLoans.Gov.

How to consolidate federal student loans



Once you log in at StudentLoans.Gov, to start out the student loan consolidation course of, merely click on on the place it says “Consolidate My Loans” after which observe the directions.

To start the student loan consolidation process click

Step 4: Review the entire federal student loans that you just need to consolidate

After clicking on “consolidate my loans”, subsequent, you’ll be prompted to overview the entire federal student loans that you just need to mix.


Step 1. Review loans that need to be consolidated.

If all the pieces seems appropriate, proceed.

Step 5: Select a Student Loan Servicer

Select a loan servicer and continue. (how to consolidate student loans)

You can choose Navient, FedLoan Servicing, Nelnet, Great Lakes Educational Loan Services, or any of the servicers obtainable. These loan servicers typically change, however all of them primarily do the identical, that’s, handle your consolidated loan. You will log in to the loan servicers web site to arrange your month-to-month cost on the brand new loan, examine updates together with whenever you’ll be eligible for loan forgiveness, get tax paperwork. Your loan servicer will ship you reminders when it’s time to recertify.

What is the Income-Driven Repayment Plan?

Robert Farrington, the founder and editor of The College Investor, calls the income-driven compensation plans “the secret ways of getting student loan forgiveness”.

The secret is easy: join a qualifying student loan compensation plan, and your loan might be forgiven on the finish of the plan (inside 10-25 years).

This subsequent picture illustrates the technical particulars that decide your month-to-month cost and quantity of loan forgiveness.

This next image illustrates the technical details that determine what your monthly payment will be and how much loan forgiveness you'll be eligible for.

Step 6: Enter Your Family Size and Annual Gross Income

Your income driven repayment plan monthly payment is based on family size and income.

Your new consolidated month-to-month cost might be primarily based on your loved ones dimension and annual gross earnings.

TIP: The bigger your loved ones dimension –the smaller your month-to-month cost might be. Lower your earningsthe decrease your cost might be.

Visual of ALL the Student Loan Repayment Plans & Projected Loan Forgiveness

Here are the repayment Plans for after consolidating student loans.

TIP: Cross these high 3 off your checklist when you’re in search of loan forgiveness.

Here are the income-driven compensation plans (most of those do supply loan forgiveness)

image of the different income driven repayment plans at

The Pay As You Earn (PAYE), Income-Based Repayment (IBR), IBR for New Borrowers, and Income-Contingent Repayment (ICR) are all glorious choices that supply loan forgiveness.

IBR and ICR repayment plans (visual of amount forgiven and payment)

How Does The IBR For New Borrowers Work?

Keep in thoughts; simply since you are offered with all of those choices when consolidating at StudentLoans.Gov, doesn’t imply you’re assured to qualify for all of them.

You can solely qualify for the IBR for New Borrowers when you are a new borrower on or after July 1, 2014. 

What If I Have Parent PLUS Loans?

First, consolidate identical to you’d with every other sort of loans. Next, you will have to get on the Income-Contingent Repayment (ICR) plan. This is the one compensation plan that you’ll be eligible for.

After yr one in every of being on the ICR, for yr two, you may recertify and swap from the ICR to the Pay As You Earn or Income-Based Repayment plan. At the second yr mark, students can even apply for the Public Service Loan Forgiveness program. Start by submitting the Employment Certification Form.

Most folks with Parent Plus Loans won’t ever find yourself getting loan forgiveness as a result of they don’t how one can get out of the Parent Plus Loans, however that is the way you do it! Consolidate your loans, use the ICR for one yr solely, after which swap out of the ICR into an income-based compensation plan that gives loan forgiveness.

$0 Monthly Payment on the Income-Driven Repayment Plans

In this subsequent picture, you may see the buyer has $181,901.00 in student loan debtTheir household dimension is 4 in complete. (2 children & 2 extra dependents) and their annual gross earnings is $15,000. This consumer qualifies for a $0 month-to-month cost.

Next - Enter your family size and annual gross income - and choose an income driven repayment plan.

In this instance, I’d select both the Pay As You Earn or the IBR for New Borrowers as a result of each of those choices supply loan forgiveness after 240 funds and a month-to-month cost of zero {dollars}.

What Is My Income Based On?

Your earnings is predicated on both your most not too long ago filed tax return or 30-days price of pay-stubs from inside the final 90-days (go together with no matter exhibits the bottom earnings).

Here is one other instance of the totally different income-based student loan compensation plans & loan forgiveness choices: (discover the column labeled “Amount Forgiven”)

Student Loan Consolidation Repayment Plan Examples

In this instance above, probably the most engaging program could be both the Pay As You Earn or the IBR for New Borrower — as each of those choices would offer you $119,222.02 of loan forgiveness and a low month-to-month cost of $65.92.

Step 7: Choose an income-driven compensation plan

Now that we’ve got offered you many examples and plenty of schooling on the totally different compensation plans obtainable — it’s time so that you can decide your income-driven compensation plan.

Select the plan that most closely fits your monetary state of affairs and helps you meet your targets.

Step 8: Electronically signal the paperwork, and it’ll get submitted to the loan servicer that you just chosen

Once you begin the consolidation course of at StudentLoans.Gov, the complete course of solely takes about 20-25 minutes to finish.

After selecting your income-driven compensation plan, you’ll be requested to comply with a number of disclosures and electronically signal all the pieces.

Step 9: Receive loan pay-off abstract

Within 3-6 weeks after your consolidation paperwork is submitted, you’ll obtain a discover within the mail asking you to overview the loans which are scheduled to be Paid in Full.

At that time, you may relaxation assured understanding that all the pieces was permitted, and your present loans are about to be paid off.

Step 10: Recertify yearly

Remember, the month-to-month cost can change every year. If you overlook to recertify on the finish of the yr, you may rapidly get kicked out of the plan — your cost would then shoot back-up, and also you’d now not be making certified funds in direction of your loan forgiveness. (most typical mistake students make!)

Here Is What Happens If You Forget To Recertify

In this subsequent picture, the student is enrolled in an income-driven compensation plan with a cost of $0 monthly, but when he forgets to recertify — his cost goes again as much as $1,920 monthly. (Look at this discover from his loan servicer)


How To Recertify Your Income-Based Repayment Plan (Annually)

To recertify your income-based compensation plan, you merely must submit your annual earnings proof to whoever your loan servicer is.

You do that by going again to StudentLoans.Gov, however as a substitute of clicking on the consolidation possibility, you’d log in and click on on “Apply for an income-driven repayment plan”.

how to recertify your federal student loan consolidation every year

Next, you’ll be taken to a web page that appears like this… Click on the button that claims “Submit Recertification”.

How to submit annual recertification for the IBR plan.

Just observe the instructions at this level.

Public Service Loan Forgiveness Program (Aka: Teacher loan forgiveness & PSLF)

If you’re employed over 30-hours per week in a “public service job,” reminiscent of a trainer — you may have your loan steadiness forgiven after solely 120 certified funds (10-years) versus, 20-25 years for anybody that doesn’t work in a public service job.

Lots of the steps (not all) that we’re about to undergo are the identical as for students that don’t have a public service job.

Step 11: Consolidate your student loans 

Your first step is to consolidate your federal student loans at StudentLoans.Gov (exactly as defined within the steps above)

Step 12: Get on an Income-Driven Repayment Plan

Get permitted for the income-driven compensation plan that gives you the bottom month-to-month cost and the very best quantity of loan forgiveness. (up to now the method stays exactly as defined above)

Step 13: Submit Employment Certification Form to FedLoan Servicing (Only relevant to PSLF)

Here is the place the method adjustments for the Public Service Loan Forgiveness Program.

THIS PUBLIC-SERVICE-EMPLOYMENT-CERTIFICATION-FORM must be submitted to FedLoan Servicing earlier than beginning your new income-based compensation plan. After 120 certified funds, you’ll be eligible for Public Service Loan Forgiveness. 

By finishing the employment certification kind earlier than making your first month-to-month cost on the income-driven compensation plan —  you’re solidifying proof that you just’ve labored in a public service job for the complete period of the final ten years.

There can be a bit on the Public Service Employment Certification Form that your employer wants to finish and signal.


Where to ship the shape?

Do not ship the Public Service Employment Certification Form to your loan servicer — it must be despatched to FedLoan Servicing. FedLoan Servicing is accountable for the Public Service Loan Forgiveness Program.

Mail to: U.S. Department of Education, FedLoan Servicing, P.O. Box 69184, Harrisburg, PA 17106-9184.


Fax to: 717-720-1628.

FedLoan might be your loan servicer when you’re making use of for the PSLF. You can not select Navient or Great Lakes, you solely have one possibility for the PSLF program, and it’s to make use of FedLoan as your loan servicer.

Could You Walk Away From Your Student Loan Debt Without Paying Anything?

At the time whenever you’re eligible for loan forgiveness, whether or not that’s in 10 years or 25 years — when you’ve remained on the $0 cost for the complete period of the plan — YES, you possibly can find yourself paying NOTHING in the long run. You might have over $100,000 in student loans, and get each little bit of it forgiven.

WARNING: Thousands of certified shoppers received’t be getting loan forgiveness as a result of they overlook to submit the employment certification kind yearly.

Examples of Public Service Jobs

  • authorities jobs – at a state, native or federal stage
  • 501(c)(3) non-profit firms
  • Teachers
  • Americorps or Peace Corps Volunteers

What to do in case you are behind on student loan funds?

The ultimate three steps apply just for students which are behind on their student loan month-to-month funds.

Step 14: Request 90-Days Forbearance or IDR Forbearance (Only relevant when you’re behind on month-to-month funds)

IDR forbearance is forbearance that lasts till your income-driven compensation plan is processed. In the previous, you’d must request 90-days forbearance, however as of 2019, you may request IDR forbearance. If your income-driven compensation plan is permitted inside 60-days, the forbearance will finish at that time to attenuate having additional curiosity capitalized to the again of the loan.

Step 15: Consolidate Student Loans (Only relevant when you’re behind on month-to-month funds)

After requesting forbearance, you’ll now have enough time to consolidate and get on an income-based compensation plan with out having to pay a past-due steadiness. So don’t waste any time, consolidate now! You can return as much as step quantity three on this information and observe the detailed directions on how one can consolidate.

Step 16: Get on an Income-Driven Repayment Plan (AKA: IBR)

This is a bit redundant, however for these of you which are delinquent on their student loans, we’ve got to back-track to make sure this information accommodates everybody. For detailed directions on how one can recertify, return as much as step quantity ten.

If late in your student loans, request IDR forbearance for ninety days or much less, consolidate, after which get on an income-driven compensation plan that gives loan forgiveness.

Need Help? Talk to a Certified Student Loan Relief Counselor at (866)-376-9846

Student Loan Forgiveness Assistance from Certified Student Loan Relief Specialists at Golden Financial Services.

Other posts that you could be be concerned about:

What is Trump Student Loan Forgiveness

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