Community Discussions
Explore the latest discussions and community conversations related to this domain.
Federal loans: if you pay one off does it decrease what you owe monthly or is it calculated all into one
Main Post:
Not consolidated, separate loans. I want to see if I pay one off in full if my monthly owe will go down
Top Comment: It depends. If you are on an income-driven repayment plan, no. If you are on a standard plan and you pay off an entire loan then yes your total payment will go down.
"E" Loan Forgiveness
Main Post:
So, if I understand the loan forgiveness announcement, I have loans that entered repayment in June, 1999. They've been in deferment/forebearance for a lot of that time, but I did make payments on them.
These are "E" loans with Nelnet. These qualify for forgiveness whether or not I'm on IDR. Is this correct?
Top Comment:
For FFEL you have to look at the details. This matters for both the IDR Wavier and for the Biden-Harris debt relief, but I'm going to link to the BHDR FAQ since it has a clear explanation on how to check. So, as per https://studentaid.gov/debt-relief-announcement/one-time-cancellation
How do I know what kinds of loans I have?
You can identify your loan types by logging on to StudentAid.gov and selecting “My Aid” in the dropdown menu under your name. In the “Loan Breakdown” section, you'll see a list of each loan you received. You'll also see loans you paid off or consolidated into a new loan. If you expand “View Loans” and select the “View Loan Details” arrow next to a loan, you'll see the more detailed name for that loan.
Direct Loans begin with the word “Direct.” Federal Family Education Loan Program loans begin with “FFEL.” Perkins Loans include the word “Perkins” in the name. If the name of your servicer starts with “Dept. of Ed” or “Default Management Collection System,” your FFEL or Perkins loan is federally managed (i.e., held by ED).
The “My Aid” section will also show you the servicer(s) for your loans.
If you have ED-held FFEL then it's eligible. If it's commercial FFEL then it isn't and you cannot consolidate the loans federally to become eligible for the debt relief but you can for the IDR Waiver
With Nelnet in particular? They make it easier, they group all ED-held loan types (so Direct and ED-held FFEL) under account codes that start with E. They use account codes starting with D/J for commercial FFEL and private loans. Not every loan servicer does this, it's Nelnet specifically that labels their accounts this way