If I consolidate my student loan with a bank, am I still eligible for loan forgiveness programs via volunteer?
I believe my student loan prior to consolidation was either Stafford or Perkins. Both S + P have programs where you teach schools or volunteer with organizations so that they can forgive a certain portion of your student loan debt.
Does the fact that I have consolidated with Citibank void me from these programs? Do banks, such as Citi, have programs like these? Also, would Citi know what kind of loan I have (Stafford vs. Perkins) or is this a totally new loan only with Citi, since I consolidated? Thanks much.
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Suddenly Human said,
May 17, 2010 @ 10:03 pm
You are correct, once you consolidate, you are no longer able to have your loans forgiven under the terms of the old loans because they (your Perkins and Stafford loans) do not exist anymore. When you consolidated, they were paid off by Citi. To find out if your new loan has any type of forgiveness program (doubtful), you should contact them.
mousemom125 said,
May 17, 2010 @ 10:38 pm
If you have consolidated your student loans with a bank, then you now owe a bank loan, NOT a federal loan. Therefore, no you will not earn any ‘forgiveness’ at all.