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The Federal Family Education Loan Program (FFELP)
(available through June 30, 2010*)

For more information, contact:

TG Customer Assistance
(800) 845-6267
cust.assist@tgslc.org

Frequently Asked Questions about Student Loan Consolidation

Deferment issues

I have a FFELP Consolidation loan and want to go back to school on at least a half-time basis. Will I be required to make payments on my Consolidation loan while in school?
No. If your lender receives information from your school that you are enrolled once again on at least a half-time basis, or receives your request for an in-school deferment, your lender will put your Consolidation loan into an in-school deferment status. You will not be required to make payments on your Consolidation loan until you drop to less-than-half-time enrollment or graduate. Of course, you can always make loan payments while you are in school. Every payment made can potentially reduce the amount of interest that accrues on your Consolidation loan.

Keep in mind that you will not receive a grace period on your Consolidation loan and you will enter repayment within 60 days after you drop to less-than-half-time enrollment or graduate.

However, if you take out additional Stafford loans while you are back in school, you will be eligible for a grace period on those loans after you drop to less-than-half-time enrollment or graduate.

I have a FFELP Consolidation loan. Am I entitled to the same deferments that I had with my Stafford loans?
Consolidation loans have most of the same deferments that Stafford loans have. You will lose a few deferment options upon Consolidation, but the ones most frequently used by borrowers (the in-school deferment, unemployment deferment, and economic hardship deferment) are still available for a Consolidation loan.

I am having difficulty making my FFELP Consolidation loan monthly payment, but I do not qualify for a deferment. Am I eligible for forbearance?
FFELP Consolidation loan borrowers remain eligible for all types of forbearance. Forbearance provisions for Consolidation loan borrowers are the same as those for Stafford, PLUS, and SLS loan borrowers. Contact your lender for more information about prepayment.

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Repayment issues

Can I prepay my FFELP Consolidation loan at any time?
Yes, you can prepay your Consolidation loan at any time without penalty, just like any other FFELP loan. As a matter of fact, it is always smart to pay extra on your loan's principal whenever possible, because this will reduce the amount of interest you pay over the life of your loan. Contact your lender for more information about prepayment.

I am having difficulty making my FFELP Consolidation loan monthly payment. Is there another repayment plan available?
The Income-Based Repayment (IBR) plan may be an option. IBR is an alternative student loan repayment plan available for FFELP and FDLP borrowers. Unlike other repayment plans, which may require a one-size-fits-all payment amount, IBR establishes a monthly payment that looks at your unique situation by considering your income, family size, and federal student loan debt.

For more information, contact TG customer assistance at (800) 845-6267.

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General information

If I already have a FFELP Consolidation loan, can I reconsolidate into a FDLP Consolidation loan?
A FFELP Consolidation loan borrower may consolidate that loan into an FDLP Consolidation loan for purposes of:

  • Obtaining the benefit of public service loan forgiveness.
  • Seeking an income-contingent repayment (ICR) or Income-Based Repayment (IBR) plan if the borrower's loan holder has requested default aversion assistance from the guarantor.
  • Seeking an ICR or IBR plan if the borrower has filed an adversary complaint in a bankruptcy proceeding.

For more information, contact TG customer assistance at (800) 845-6267.

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